þ
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Bermuda
(State or Other Jurisdiction of Incorporation or Organization)
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98-0557567
(I.R.S. Employer Identification No.)
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1555 Peachtree Street, N.E., Suite 1800, Atlanta, GA
(Address of Principal Executive Offices)
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30309
(Zip Code)
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Large accelerated filer
þ
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Accelerated filer
o
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Non-accelerated filer
o
(Do not check if a smaller reporting company)
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Smaller reporting company
o
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Page
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TABLE OF CONTENTS
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As of
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$ in millions, except per share data
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March 31, 2016
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December 31, 2015
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ASSETS
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Cash and cash equivalents
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1,454.5
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1,851.4
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Unsettled fund receivables
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957.3
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566.3
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Accounts receivable
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513.9
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528.1
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Investments
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919.6
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1,019.1
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Assets of consolidated sponsored investment products (CSIP)
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—
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319.1
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Assets of consolidated investment products (CIP):
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Cash and cash equivalents of CIP
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167.8
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363.3
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Accounts receivable and other assets of CIP
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139.6
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173.5
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Investments of CIP
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3,639.4
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6,016.1
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Assets held for policyholders
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6,578.3
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6,051.5
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Prepaid assets
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127.3
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121.2
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Other assets
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78.0
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107.0
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Property, equipment and software, net
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428.9
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426.9
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Intangible assets, net
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1,361.2
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1,354.0
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Goodwill
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6,292.4
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6,175.7
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Total assets
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22,658.2
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25,073.2
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LIABILITIES
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Accrued compensation and benefits
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331.0
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661.3
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Accounts payable and accrued expenses
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754.9
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863.1
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Liabilities of CIP:
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Debt of CIP
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3,061.2
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5,437.0
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Other liabilities of CIP
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181.5
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273.7
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Policyholder payables
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6,578.3
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6,051.5
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Unsettled fund payables
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933.9
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561.9
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Long-term debt
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2,073.2
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2,072.8
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Deferred tax liabilities, net
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374.4
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288.9
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Total liabilities
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14,288.4
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16,210.2
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Commitments and contingencies (See Note 11)
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TEMPORARY EQUITY
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Redeemable noncontrolling interests in consolidated entities
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407.3
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167.3
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PERMANENT EQUITY
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Equity attributable to Invesco Ltd.:
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Common shares ($0.20 par value; 1,050.0 million authorized; 490.4 million shares issued as of March 31, 2016 and December 31, 2015)
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98.1
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98.1
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Additional paid-in-capital
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6,139.9
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6,197.7
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Treasury shares
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(2,472.9
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)
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(2,404.1
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)
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Retained earnings
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4,487.6
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4,439.6
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Accumulated other comprehensive income/(loss), net of tax
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(348.7
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)
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(446.0
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)
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Total equity attributable to Invesco Ltd.
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7,904.0
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7,885.3
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Equity attributable to nonredeemable noncontrolling interests in consolidated entities
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58.5
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810.4
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Total permanent equity
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7,962.5
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8,695.7
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Total liabilities, temporary and permanent equity
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22,658.2
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25,073.2
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Three months ended March 31,
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$ in millions, except per share data
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2016
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2015
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Operating revenues:
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Investment management fees
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913.6
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1,001.4
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Service and distribution fees
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197.7
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213.4
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Performance fees
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14.5
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46.8
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Other
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22.9
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30.0
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Total operating revenues
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1,148.7
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1,291.6
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Operating expenses:
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Employee compensation
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344.4
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360.9
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Third-party distribution, service and advisory
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347.2
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399.1
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Marketing
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24.9
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26.7
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Property, office and technology
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79.9
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76.9
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General and administrative
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77.9
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89.9
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Total operating expenses
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874.3
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953.5
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Operating income
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274.4
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338.1
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Other income/(expense):
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Equity in earnings of unconsolidated affiliates
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(12.2
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11.8
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Interest and dividend income
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3.6
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2.5
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Interest expense
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(23.9
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(18.7
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)
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Other gains and losses, net
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(4.7
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)
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2.7
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Other income/(expense) of CIP, net
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(7.5
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)
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39.5
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Other income/(expense) of CSIP, net
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—
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9.4
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Income before income taxes
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229.7
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385.3
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Income tax provision
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(71.9
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(101.3
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Net income
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157.8
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284.0
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Net (income)/loss attributable to noncontrolling interests in consolidated entities
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3.2
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(24.4
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Net income attributable to Invesco Ltd.
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161.0
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259.6
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Earnings per share:
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-basic
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$0.38
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$0.60
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-diluted
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$0.38
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$0.60
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Dividends declared per share
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$0.27
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$0.25
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Three months ended March 31,
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$ in millions
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2016
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2015
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Net income
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157.8
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284.0
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Other comprehensive income/(loss), net of tax:
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Currency translation differences on investments in foreign subsidiaries, net of tax
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97.2
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(302.9
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Actuarial (loss)/gain related to employee benefit plans, net of tax
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(0.4
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—
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Reclassification of prior service cost/(credit) into employee compensation expense, net of tax
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(1.6
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(1.8
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Reclassification of actuarial (gain)/loss into employee compensation expense, net of tax
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0.3
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0.5
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Share of other comprehensive income/(loss) of equity method investments, net of tax
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(0.3
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)
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1.1
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Unrealized (losses)/gains on available-for-sale investments, net of tax
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2.3
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1.2
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Reclassification of net (gains)/losses realized on available-for-sale investments included in other gains and losses, net, net of tax
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(0.2
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)
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(0.5
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)
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Other comprehensive income/(loss), net of tax
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97.3
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(302.4
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)
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Total comprehensive income/(loss)
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255.1
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(18.4
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)
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Comprehensive loss/(income) attributable to noncontrolling interests in consolidated entities
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3.2
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(24.4
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)
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Comprehensive income/(loss) attributable to Invesco Ltd.
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258.3
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(42.8
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)
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Three months ended March 31,
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$ in millions
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2016
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2015
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Operating activities:
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Net income
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157.8
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284.0
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Adjustments to reconcile net income to net cash provided by/(used in) operating activities:
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Amortization and depreciation
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24.7
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22.7
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Share-based compensation expense
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38.7
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40.7
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Other (gains)/losses, net
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4.7
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(2.7
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)
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Other (gains)/losses of CSIP, net
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—
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(6.4
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)
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Other (gains)/losses of CIP, net
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24.6
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(24.4
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)
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Equity in earnings of unconsolidated affiliates
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12.2
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(11.8
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)
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Dividends from unconsolidated affiliates
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0.6
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0.7
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Changes in operating assets and liabilities:
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(Increase)/decrease in cash held by CIP
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86.3
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9.4
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(Increase)/decrease in cash held by CSIP
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—
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(8.8
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)
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(Purchase)/sale of investments by CIP, net
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(83.3
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)
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—
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(Purchase)/sale of trading investments, net
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15.2
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(39.5
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)
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(Increase)/decrease in receivables
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(993.5
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)
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(1,632.9
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)
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Increase/(decrease) in payables
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643.2
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1,312.7
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Net cash provided by/(used in) operating activities
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(68.8
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)
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(56.3
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)
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Investing activities:
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Purchase of property, equipment and software
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(26.0
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)
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(23.0
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)
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Purchase of available-for-sale investments
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(0.2
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)
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(34.3
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)
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Sale of available-for-sale investments
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3.3
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9.8
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Purchase of investments by CIP
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(436.7
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)
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(1,286.6
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)
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Sale of investments by CIP
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394.2
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960.6
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Purchase of investments by CSIP
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—
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(159.1
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)
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Sale of investments by CSIP
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—
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166.7
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Purchase of other investments
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(41.6
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)
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(51.9
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)
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Sale of other investments
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22.4
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36.6
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Returns of capital and distributions from unconsolidated partnership investments
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10.7
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14.7
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Purchase of business
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(33.2
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)
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—
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Net cash provided by/(used in) investing activities
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(107.1
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)
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(366.5
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)
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Financing activities:
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Proceeds from exercises of share options
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—
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0.7
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Purchases of treasury shares
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(125.0
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)
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(76.6
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)
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Dividends paid
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(113.0
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)
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(108.1
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)
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Excess tax benefits from share-based compensation
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(3.9
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)
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13.0
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Third-party capital invested into CIP
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104.5
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12.9
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Third-party capital distributed by CIP
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(25.5
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)
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(33.9
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)
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Third-party capital invested into CSIP
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—
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0.8
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Borrowings of debt by CIP
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—
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935.9
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Repayments of debt by CIP
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(46.8
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)
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(577.0
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)
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Net borrowings/(repayments) under credit facility
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—
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11.2
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Payment of contingent consideration
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(3.2
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)
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—
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Net cash provided by/(used in) financing activities
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(212.9
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)
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|
178.9
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Increase/(decrease) in cash and cash equivalents
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(388.8
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)
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(243.9
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)
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Foreign exchange movement on cash and cash equivalents
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(8.1
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)
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(50.6
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)
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Cash and cash equivalents, beginning of period
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1,851.4
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1,514.2
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Cash and cash equivalents, end of period
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1,454.5
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1,219.7
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Supplemental Cash Flow Information:
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Interest paid
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(12.8
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)
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(12.7
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)
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Interest received
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1.6
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1.3
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Taxes paid
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(53.9
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)
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(89.6
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)
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Equity Attributable to Invesco Ltd.
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|||||||||||||||||||
$ in millions
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Co
mmon
Shares
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Additional Paid-in-Capital
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Treasury Shares
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Retained Earnings
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Accumulated Other Comprehensive Income/(Loss)
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Total Equity Attributable to Invesco Ltd.
|
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Nonredeemable Noncontrolling Interests in Consolidated Entities
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Total Permanent Equity
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|
Redeemable Noncontrolling Interests in Consolidated Entities Temporary Equity
|
|||||||||
January 1, 2016
|
98.1
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|
|
6,197.7
|
|
|
(2,404.1
|
)
|
|
4,439.6
|
|
|
(446.0
|
)
|
|
7,885.3
|
|
|
810.4
|
|
|
8,695.7
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|
|
167.3
|
|
Adjustment for adoption of ASU 2015-02
|
—
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|
—
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|
—
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|
|
—
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|
|
—
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|
|
—
|
|
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(733.5
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)
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|
(733.5
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)
|
|
226.6
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|
January 1, 2016, as adjusted
|
98.1
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|
|
6,197.7
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|
|
(2,404.1
|
)
|
|
4,439.6
|
|
|
(446.0
|
)
|
|
7,885.3
|
|
|
76.9
|
|
|
7,962.2
|
|
|
393.9
|
|
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
161.0
|
|
|
—
|
|
|
161.0
|
|
|
(2.9
|
)
|
|
158.1
|
|
|
(0.3
|
)
|
Other comprehensive income/(loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
97.3
|
|
|
97.3
|
|
|
—
|
|
|
97.3
|
|
|
—
|
|
Change in noncontrolling interests in consolidated entities, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(15.5
|
)
|
|
(15.5
|
)
|
|
13.7
|
|
Dividends
|
—
|
|
|
—
|
|
|
—
|
|
|
(113.0
|
)
|
|
—
|
|
|
(113.0
|
)
|
|
—
|
|
|
(113.0
|
)
|
|
—
|
|
Employee share plans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Share-based compensation
|
—
|
|
|
38.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
38.7
|
|
|
—
|
|
|
38.7
|
|
|
—
|
|
Vested shares
|
—
|
|
|
(92.6
|
)
|
|
92.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Other share awards
|
—
|
|
|
—
|
|
|
0.2
|
|
|
—
|
|
|
—
|
|
|
0.2
|
|
|
—
|
|
|
0.2
|
|
|
—
|
|
Tax impact of share-based payment
|
—
|
|
|
(3.9
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3.9
|
)
|
|
—
|
|
|
(3.9
|
)
|
|
—
|
|
Purchase of shares
|
—
|
|
|
—
|
|
|
(161.6
|
)
|
|
—
|
|
|
—
|
|
|
(161.6
|
)
|
|
—
|
|
|
(161.6
|
)
|
|
—
|
|
March 31, 2016
|
98.1
|
|
|
6,139.9
|
|
|
(2,472.9
|
)
|
|
4,487.6
|
|
|
(348.7
|
)
|
|
7,904.0
|
|
|
58.5
|
|
|
7,962.5
|
|
|
407.3
|
|
|
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 Consolidated Entities 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
|
—
|
|
|
—
|
|
|
—
|
|
|
259.6
|
|
|
—
|
|
|
—
|
|
|
259.6
|
|
|
22.3
|
|
|
281.9
|
|
|
2.1
|
|
Other comprehensive income/(loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(302.4
|
)
|
|
(302.4
|
)
|
|
—
|
|
|
(302.4
|
)
|
|
—
|
|
Change in noncontrolling interests in consolidated entities, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(20.3
|
)
|
|
(20.3
|
)
|
|
—
|
|
Dividends
|
—
|
|
|
—
|
|
|
—
|
|
|
(108.1
|
)
|
|
—
|
|
|
—
|
|
|
(108.1
|
)
|
|
—
|
|
|
(108.1
|
)
|
|
—
|
|
Employee share plans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Share-based compensation
|
—
|
|
|
40.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
40.7
|
|
|
—
|
|
|
40.7
|
|
|
—
|
|
Vested shares
|
—
|
|
|
(95.8
|
)
|
|
95.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Exercise of options
|
—
|
|
|
(0.3
|
)
|
|
1.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.7
|
|
|
—
|
|
|
0.7
|
|
|
—
|
|
Tax impact of share-based payment
|
—
|
|
|
13.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
13.0
|
|
|
—
|
|
|
13.0
|
|
|
—
|
|
Purchase of shares
|
—
|
|
|
—
|
|
|
(134.9
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(134.9
|
)
|
|
—
|
|
|
(134.9
|
)
|
|
—
|
|
March 31, 2015
|
98.1
|
|
|
6,091.2
|
|
|
(1,936.2
|
)
|
|
4,077.5
|
|
|
—
|
|
|
(253.6
|
)
|
|
8,077.0
|
|
|
795.8
|
|
|
8,872.8
|
|
|
167.6
|
|
|
|
|
March 31, 2016
|
|
December 31, 2015
|
||||||||
$ in millions
|
Footnote Reference
|
|
Carrying Value
|
|
Fair Value
|
|
Carrying Value
|
|
Fair Value
|
||||
Cash and cash equivalents
|
|
|
1,454.5
|
|
|
1,454.5
|
|
|
1,851.4
|
|
|
1,851.4
|
|
Available-for-sale investments
|
3
|
|
191.0
|
|
|
191.0
|
|
|
233.2
|
|
|
233.2
|
|
Trading investments
|
3
|
|
347.3
|
|
|
347.3
|
|
|
402.7
|
|
|
402.7
|
|
Foreign time deposits
*
|
3
|
|
28.8
|
|
|
28.8
|
|
|
24.7
|
|
|
24.7
|
|
Assets held for policyholders
|
|
|
6,578.3
|
|
|
6,578.3
|
|
|
6,051.5
|
|
|
6,051.5
|
|
Policyholder payables *
|
|
|
(6,578.3
|
)
|
|
(6,578.3
|
)
|
|
(6,051.5
|
)
|
|
(6,051.5
|
)
|
Put option contracts
|
|
|
10.9
|
|
|
10.9
|
|
|
1.4
|
|
|
1.4
|
|
UIT-related financial instruments sold, not yet purchased
|
|
|
(1.7
|
)
|
|
(1.7
|
)
|
|
(2.5
|
)
|
|
(2.5
|
)
|
Contingent consideration liability
|
|
|
(77.2
|
)
|
|
(77.2
|
)
|
|
(83.9
|
)
|
|
(83.9
|
)
|
Long-term debt
*
|
4
|
|
(2,073.2
|
)
|
|
(2,200.1
|
)
|
|
(2,072.8
|
)
|
|
(2,161.3
|
)
|
*
|
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 March 31, 2016
|
||||||||||
$ 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
|
272.2
|
|
|
272.2
|
|
|
—
|
|
|
—
|
|
Investments:*
|
|
|
|
|
|
|
|
||||
Available-for-sale:
|
|
|
|
|
|
|
|
||||
Seed money
|
174.9
|
|
|
174.9
|
|
|
—
|
|
|
—
|
|
CLOs
|
11.8
|
|
|
—
|
|
|
—
|
|
|
11.8
|
|
Other debt securities
|
4.3
|
|
|
—
|
|
|
—
|
|
|
4.3
|
|
Trading investments:
|
|
|
|
|
|
|
|
||||
Investments related to deferred compensation plans
|
166.0
|
|
|
166.0
|
|
|
—
|
|
|
—
|
|
Seed money
|
152.8
|
|
|
152.8
|
|
|
—
|
|
|
—
|
|
Other equity securities
|
26.3
|
|
|
26.3
|
|
|
—
|
|
|
—
|
|
UIT-related equity and debt securities:
|
|
|
|
|
|
|
|
||||
Corporate equities
|
1.5
|
|
|
1.5
|
|
|
—
|
|
|
—
|
|
UITs
|
0.7
|
|
|
0.7
|
|
|
—
|
|
|
—
|
|
Assets held for policyholders
|
6,578.3
|
|
|
6,578.3
|
|
|
—
|
|
|
—
|
|
Put option contracts
|
10.9
|
|
|
—
|
|
|
10.9
|
|
|
—
|
|
Total
|
7,399.7
|
|
|
7,372.7
|
|
|
10.9
|
|
|
16.1
|
|
Liabilities:
|
|
|
|
|
|
|
|
||||
UIT-related financial instruments sold, not yet purchased:
|
|
|
|
|
|
|
|
||||
Corporate equities
|
(1.7
|
)
|
|
(1.7
|
)
|
|
—
|
|
|
—
|
|
Contingent consideration liability
|
(77.2
|
)
|
|
—
|
|
|
—
|
|
|
(77.2
|
)
|
Total
|
(78.9
|
)
|
|
(1.7
|
)
|
|
—
|
|
|
(77.2
|
)
|
*
|
Foreign time deposits of
$28.8 million
are excluded from this table. Equity method and other investments of
$346.8 million
and
$5.7 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, 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
|
383.3
|
|
|
383.3
|
|
|
—
|
|
|
—
|
|
Investments:*
|
|
|
|
|
|
|
|
||||
Available-for-sale:
|
|
|
|
|
|
|
|
||||
Seed money
|
225.9
|
|
|
225.9
|
|
|
—
|
|
|
—
|
|
CLOs
|
1.4
|
|
|
—
|
|
|
—
|
|
|
1.4
|
|
Other debt securities
|
5.9
|
|
|
—
|
|
|
—
|
|
|
5.9
|
|
Trading investments:
|
|
|
|
|
|
|
|
||||
Investments related to deferred compensation plans
|
158.8
|
|
|
158.8
|
|
|
—
|
|
|
—
|
|
Seed Money
|
191.2
|
|
|
191.2
|
|
|
—
|
|
|
—
|
|
Other equity securities
|
48.1
|
|
|
48.1
|
|
|
—
|
|
|
—
|
|
UIT-related equity and debt securities:
|
|
|
|
|
|
|
|
||||
Corporate equities
|
1.8
|
|
|
1.8
|
|
|
—
|
|
|
—
|
|
UITs
|
1.5
|
|
|
1.5
|
|
|
—
|
|
|
—
|
|
Municipal securities
|
1.3
|
|
|
—
|
|
|
1.3
|
|
|
—
|
|
Assets held for policyholders
|
6,051.5
|
|
|
6,051.5
|
|
|
—
|
|
|
—
|
|
Put option contracts
|
1.4
|
|
|
—
|
|
|
1.4
|
|
|
—
|
|
Total
|
7,072.1
|
|
|
7,062.1
|
|
|
2.7
|
|
|
7.3
|
|
Liabilities:
|
|
|
|
|
|
|
|
||||
UIT-related financial instruments sold, not yet purchased:
|
|
|
|
|
|
|
|
||||
Corporate equities
|
(2.5
|
)
|
|
(2.5
|
)
|
|
—
|
|
|
—
|
|
Contingent consideration liability
|
(83.9
|
)
|
|
—
|
|
|
—
|
|
|
(83.9
|
)
|
Total
|
(86.4
|
)
|
|
(2.5
|
)
|
|
—
|
|
|
(83.9
|
)
|
*
|
Foreign time deposits of
$24.7 million
are excluded from this table. Equity method and other investments of
$352.8 million
and
$5.7 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 March 31, 2016
|
|||||||
$ in millions
|
Contingent Consideration Liability
|
|
CLOs
|
|
Other Debt Securities
|
|||
January 1, 2016
|
(83.9
|
)
|
|
1.4
|
|
|
5.9
|
|
Adjustment for adoption of ASU 2015-02
|
—
|
|
|
11.5
|
|
|
—
|
|
January 1, 2016, as adjusted
|
(83.9
|
)
|
|
12.9
|
|
|
5.9
|
|
Returns of capital
|
—
|
|
|
(0.5
|
)
|
|
(1.6
|
)
|
Net unrealized gains and losses included in other gains and losses*
|
3.5
|
|
|
—
|
|
|
—
|
|
Net unrealized gains and losses included in accumulated other comprehensive income/(loss)
*
|
—
|
|
|
(0.6
|
)
|
|
—
|
|
Disposition/settlements
|
3.2
|
|
|
—
|
|
|
—
|
|
Ending balance
|
(77.2
|
)
|
|
11.8
|
|
|
4.3
|
|
|
Three months ended March 31, 2015
|
||||
$ in millions
|
CLOs
|
|
Other Debt Securities
|
||
Beginning balance
|
3.4
|
|
|
6.3
|
|
Returns of capital
|
(0.1
|
)
|
|
—
|
|
Disposition
|
(0.8
|
)
|
|
—
|
|
Ending balance
|
2.5
|
|
|
6.3
|
|
*
|
These unrealized gains and losses are attributable to balances still held at the respective period ends.
|
|
For the three months ended March 31, 2016
|
|||||||
$ in millions
|
Proceeds from Sales
|
|
Gross Realized Gains
|
|
Gross Realized Losses
|
|||
Seed money
|
1.2
|
|
|
0.3
|
|
|
—
|
|
CLOs
|
0.5
|
|
|
—
|
|
|
—
|
|
Other debt securities
|
1.6
|
|
|
—
|
|
|
—
|
|
|
3.3
|
|
|
0.3
|
|
|
—
|
|
|
For the three months ended March 31, 2015
|
|||||||
$ in millions
|
Proceeds from Sales
|
|
Gross Realized Gains
|
|
Gross Realized Losses
|
|||
Seed money
|
8.9
|
|
|
0.6
|
|
|
—
|
|
CLOs
|
0.9
|
|
|
0.1
|
|
|
—
|
|
|
9.8
|
|
|
0.7
|
|
|
—
|
|
|
March 31, 2016
|
|
December 31, 2015
|
||||||||||||||||||||
$ 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
|
173.3
|
|
|
8.3
|
|
|
(6.7
|
)
|
|
174.9
|
|
|
227.6
|
|
|
7.6
|
|
|
(9.3
|
)
|
|
225.9
|
|
CLOs
|
11.7
|
|
|
5.1
|
|
|
(5.0
|
)
|
|
11.8
|
|
|
1.3
|
|
|
0.1
|
|
|
—
|
|
|
1.4
|
|
Other debt securities
|
4.1
|
|
|
0.2
|
|
|
—
|
|
|
4.3
|
|
|
5.9
|
|
|
—
|
|
|
—
|
|
|
5.9
|
|
|
189.1
|
|
|
13.6
|
|
|
(11.7
|
)
|
|
191.0
|
|
|
234.8
|
|
|
7.7
|
|
|
(9.3
|
)
|
|
233.2
|
|
|
March 31, 2016
|
|
December 31, 2015
|
||||||||
$ in millions
|
Fair Value
|
|
Gross Unrealized Losses
|
|
Fair Value
|
|
Gross Unrealized Losses
|
||||
Less than 12 months
|
4.4
|
|
|
(0.4
|
)
|
|
93.0
|
|
|
(3.0
|
)
|
12 months or greater
|
76.6
|
|
|
(6.3
|
)
|
|
65.5
|
|
|
(6.3
|
)
|
Total
|
81.0
|
|
|
(6.7
|
)
|
|
158.5
|
|
|
(9.3
|
)
|
|
Available-for-Sale (Fair Value)
|
|
Less than one year
|
1.7
|
|
One to five years
|
1.5
|
|
Five to ten years
|
10.2
|
|
Greater than ten years
|
2.7
|
|
Total available-for-sale
|
16.1
|
|
|
March 31, 2016
|
|
December 31, 2015
|
||||||||
$ in millions
|
Carrying Value**
|
|
Fair Value
|
|
Carrying Value**
|
|
Fair Value
|
||||
Floating rate credit facility expiring August 7, 2020
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Unsecured Senior Notes*:
|
|
|
|
|
|
|
|
||||
$600 million 3.125% - due November 30, 2022
|
596.1
|
|
|
610.4
|
|
|
596.1
|
|
|
601.4
|
|
$600 million 4.000% - due January 30, 2024
|
593.0
|
|
|
629.2
|
|
|
592.7
|
|
|
628.3
|
|
$500 million 3.750% - due January 15, 2026
|
494.2
|
|
|
516.8
|
|
|
494.2
|
|
|
503.0
|
|
$400 million 5.375% - due November 30, 2043
|
389.9
|
|
|
443.7
|
|
|
389.8
|
|
|
428.6
|
|
Long-term debt
|
2,073.2
|
|
|
2,200.1
|
|
|
2,072.8
|
|
|
2,161.3
|
|
*
|
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.
|
**
|
The difference between the principal amounts and the carrying values of the senior notes in the table above reflect the unamortized debt issuance costs and discounts.
|
|
As of
|
||||
In millions
|
March 31, 2016
|
|
December 31, 2015
|
|
|
Common shares issued
|
490.4
|
|
|
490.4
|
|
Less: Treasury shares for which dividend and voting rights do not apply
|
(73.1
|
)
|
|
(72.9
|
)
|
Common shares outstanding
|
417.3
|
|
|
417.5
|
|
|
For the three months ended March 31, 2016
|
|||||||||||||
$ 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
|
97.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
97.2
|
|
Actuarial (loss)/gain related to employee benefit plans, net of tax
|
—
|
|
|
(0.4
|
)
|
|
—
|
|
|
—
|
|
|
(0.4
|
)
|
Reclassification of prior service cost/(credit) into employee compensation expense, net of tax
|
—
|
|
|
(1.6
|
)
|
|
—
|
|
|
—
|
|
|
(1.6
|
)
|
Reclassification of actuarial (gain)/loss into employee compensation expense, net of tax
|
—
|
|
|
0.3
|
|
|
—
|
|
|
—
|
|
|
0.3
|
|
Share of other comprehensive income/(loss) of equity method investments, net of tax
|
—
|
|
|
—
|
|
|
(0.3
|
)
|
|
—
|
|
|
(0.3
|
)
|
Unrealized (losses)/gains on available-for-sale investments, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
2.3
|
|
|
2.3
|
|
Reclassification of net (gains)/losses realized on available-for-sale investments included in other gains and losses, net, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.2
|
)
|
|
(0.2
|
)
|
Other comprehensive income/(loss), net of tax
|
97.2
|
|
|
(1.7
|
)
|
|
(0.3
|
)
|
|
2.1
|
|
|
97.3
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Beginning balance
|
(365.8
|
)
|
|
(85.6
|
)
|
|
5.9
|
|
|
(0.5
|
)
|
|
(446.0
|
)
|
Other comprehensive income/(loss), net of tax
|
97.2
|
|
|
(1.7
|
)
|
|
(0.3
|
)
|
|
2.1
|
|
|
97.3
|
|
Ending balance
|
(268.6
|
)
|
|
(87.3
|
)
|
|
5.6
|
|
|
1.6
|
|
|
(348.7
|
)
|
|
For the three months ended March 31, 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
|
(302.9
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(302.9
|
)
|
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
|
—
|
|
|
0.5
|
|
|
—
|
|
|
—
|
|
|
0.5
|
|
Share of other comprehensive income/(loss) of equity method investments, net of tax
|
—
|
|
|
—
|
|
|
1.1
|
|
|
—
|
|
|
1.1
|
|
Unrealized (losses)/gains on available-for-sale investments, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
1.2
|
|
|
1.2
|
|
Reclassification of net (gains)/losses realized on available-for-sale investments included in other gains and losses, net, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.5
|
)
|
|
(0.5
|
)
|
Other comprehensive income/(loss), net of tax
|
(302.9
|
)
|
|
(1.3
|
)
|
|
1.1
|
|
|
0.7
|
|
|
(302.4
|
)
|
|
|
|
|
|
|
|
|
|
|
|||||
Beginning balance
|
128.1
|
|
|
(91.7
|
)
|
|
6.5
|
|
|
5.9
|
|
|
48.8
|
|
Other comprehensive income/(loss), net of tax
|
(302.9
|
)
|
|
(1.3
|
)
|
|
1.1
|
|
|
0.7
|
|
|
(302.4
|
)
|
Ending balance
|
(174.8
|
)
|
|
(93.0
|
)
|
|
7.6
|
|
|
6.6
|
|
|
(253.6
|
)
|
|
For the three months ended March 31, 2015
|
|
For the three months ended March 31, 2015
|
|||||||||||
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
|
10.4
|
|
|
0.6
|
|
|
33.62
|
|
|
11.5
|
|
|
0.5
|
|
Granted during the period
|
6.2
|
|
|
0.4
|
|
|
27.30
|
|
|
3.9
|
|
|
0.3
|
|
Vested and distributed during the period
|
(4.1
|
)
|
|
(0.2
|
)
|
|
31.43
|
|
|
(4.3
|
)
|
|
(0.2
|
)
|
Unvested at the end of the period
|
12.5
|
|
|
0.8
|
|
|
31.20
|
|
|
11.1
|
|
|
0.6
|
|
|
Retirement Plans
|
|
Medical Plan
|
||||||||
|
For the three months ended March 31,
|
|
For the three months ended March 31,
|
||||||||
$ in millions
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||
Service cost
|
1.4
|
|
|
1.2
|
|
|
—
|
|
|
—
|
|
Interest cost
|
4.4
|
|
|
5.3
|
|
|
—
|
|
|
—
|
|
Expected return on plan assets
|
(5.7
|
)
|
|
(6.2
|
)
|
|
—
|
|
|
(0.1
|
)
|
Amortization of prior service cost/(credit)
|
—
|
|
|
—
|
|
|
(2.0
|
)
|
|
(2.2
|
)
|
Amortization of net actuarial (gain)/loss
|
0.5
|
|
|
0.6
|
|
|
(0.1
|
)
|
|
—
|
|
Net periodic benefit cost/(benefit)
|
0.6
|
|
|
0.9
|
|
|
(2.1
|
)
|
|
(2.3
|
)
|
|
For the three months ended March 31,
|
||||||
In millions, except per share data
|
2016
|
|
2015
|
||||
Net income
|
|
$157.8
|
|
|
|
$284.0
|
|
Net (income)/loss attributable to noncontrolling interests in consolidated entities
|
3.2
|
|
|
(24.4
|
)
|
||
Net income attributable to Invesco Ltd.
|
161.0
|
|
|
259.6
|
|
||
Less: Allocation of earnings to restricted shares
|
(4.2
|
)
|
|
(6.7
|
)
|
||
Net income attributable to common shareholders
|
|
$156.8
|
|
|
|
$252.9
|
|
|
|
|
|
||||
Invesco Ltd:
|
|
|
|
||||
Weighted average shares outstanding - basic
|
418.7
|
|
|
432.2
|
|
||
Dilutive effect of non-participating share-based awards
|
0.2
|
|
|
0.3
|
|
||
Weighted average shares outstanding - diluted
|
418.9
|
|
|
432.5
|
|
||
|
|
|
|
||||
Common shareholders:
|
|
|
|
||||
Weighted average shares outstanding - basic
|
418.7
|
|
|
432.2
|
|
||
Less: Weighted average restricted shares
|
(11.0
|
)
|
|
(11.3
|
)
|
||
Weighted average common shares outstanding - basic
|
407.7
|
|
|
420.9
|
|
||
Dilutive effect of non-participating share-based awards
|
0.2
|
|
|
0.3
|
|
||
Weighted average common shares outstanding - diluted
|
407.9
|
|
|
421.2
|
|
||
|
|
|
|
||||
Earnings per share:
|
|
|
|
||||
Basic earnings per share
|
|
$0.38
|
|
|
|
$0.60
|
|
Diluted earnings per share
|
|
$0.38
|
|
|
|
$0.60
|
|
$ in millions
|
|
December 31, 2015
|
|
Investments of CSIP
|
|
290.3
|
|
Cash and cash equivalents of CSIP
|
|
21.9
|
|
Accounts receivable and other assets of CSIP
|
|
6.9
|
|
Assets of CSIP
|
|
319.1
|
|
Other liabilities of CSIP
|
|
(4.4
|
)
|
Equity attributable to redeemable noncontrolling interests
|
|
(167.3
|
)
|
Equity attributable to nonredeemable noncontrolling interests
|
|
(40.8
|
)
|
Invesco's net interests in CSIP
|
|
106.6
|
|
|
As of December 31, 2015
|
|||||||||||||
$ 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 Measured at NAV as a practical expedient
|
|||||
Investments:
|
|
|
|
|
|
|
|
|
|
|||||
Fixed income securities
|
204.2
|
|
|
—
|
|
|
204.2
|
|
|
—
|
|
|
—
|
|
Equity securities
|
0.7
|
|
|
0.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Investments in fixed income funds
|
35.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
35.0
|
|
Investments in other private equity funds
|
50.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
50.4
|
|
Total investments at fair value
|
290.3
|
|
|
0.7
|
|
|
204.2
|
|
|
—
|
|
|
85.4
|
|
|
|
As of December 31, 2015
|
||||||||||
|
|
Fair Value
($ in millions)
|
|
Total Unfunded Commitments ($ in millions)
|
|
Weighted Average Remaining Term
(1)
|
|
Redemption Frequency
|
|
Redemption Notice Period
|
||
Fixed income funds
|
|
35.0
|
|
|
—
|
|
|
n/a
|
|
Monthly
|
|
10 days
|
Private equity fund of funds
|
|
50.4
|
|
|
33.2
|
|
|
7.9 years
|
|
n/a
(2)
|
|
n/a
(2)
|
|
As of
|
||||
$ in millions
|
March 31, 2016
|
|
December 31, 2015
|
||
Cash and cash equivalents of CIP
|
167.8
|
|
|
363.3
|
|
Accounts receivable and other assets of CIP
|
139.6
|
|
|
173.5
|
|
Investments of CIP
|
3,639.4
|
|
|
6,016.1
|
|
Less: Debt of CIP
|
(3,061.2
|
)
|
|
(5,437.0
|
)
|
Less: Other liabilities of CIP
|
(181.5
|
)
|
|
(273.7
|
)
|
Less: Retained earnings
|
30.4
|
|
|
20.1
|
|
Less: Accumulated other comprehensive income, net of tax
|
(34.0
|
)
|
|
(20.1
|
)
|
Less: Equity attributable to redeemable noncontrolling interests
|
(407.3
|
)
|
|
—
|
|
Less: Equity attributable to nonredeemable noncontrolling interests
|
(57.6
|
)
|
|
(768.8
|
)
|
Invesco's net interests in CIP
|
235.6
|
|
|
73.4
|
|
|
Three months ended March 31,
|
||||
$ in millions
|
2016
|
|
2015
|
||
Total operating revenues
|
(5.5
|
)
|
|
(9.3
|
)
|
Total operating expenses
|
1.8
|
|
|
12.2
|
|
Operating income
|
(7.3
|
)
|
|
(21.5
|
)
|
Equity in earnings of unconsolidated affiliates
|
3.5
|
|
|
(1.7
|
)
|
Interest and dividend income
|
(0.1
|
)
|
|
(1.4
|
)
|
Other gains and losses, net
|
(0.2
|
)
|
|
(2.7
|
)
|
Interest and dividend income of CIP
|
44.4
|
|
|
60.2
|
|
Interest expense of CIP
|
(27.3
|
)
|
|
(45.1
|
)
|
Other gains/(losses) of CIP, net
|
(24.6
|
)
|
|
24.4
|
|
Income before income taxes
|
(11.6
|
)
|
|
12.2
|
|
Income tax provision
|
—
|
|
|
—
|
|
Net income
|
(11.6
|
)
|
|
12.2
|
|
Net (income)/loss attributable to noncontrolling interests in consolidated entities
|
3.2
|
|
|
(20.4
|
)
|
Net income attributable to Invesco Ltd.
|
(8.4
|
)
|
|
(8.2
|
)
|
|
Transition date impact
|
||||
$ in millions
|
Consolidated
|
|
Deconsolidated
|
||
Cash and cash equivalents of CIP
|
33.8
|
|
|
163.8
|
|
Accounts receivable and other assets of CIP
|
105.4
|
|
|
68.8
|
|
Investments of CIP
|
319.3
|
|
|
2,938.0
|
|
Total assets
|
458.5
|
|
|
3,170.6
|
|
|
|
|
|
||
Debt of CIP
|
—
|
|
|
2,259.2
|
|
Other liabilities of CIP
|
102.4
|
|
|
110.4
|
|
Total liabilities
|
102.4
|
|
|
2,369.6
|
|
Total equity
|
356.1
|
|
|
801.0
|
|
Total liabilities and equity
|
458.5
|
|
|
3,170.6
|
|
|
For the three months ended March 31, 2016
|
For the three months ended March 31, 2015
|
||||||
$ in millions
|
VIEs
|
|
VIEs
|
|
VOEs
|
|||
Cash and cash equivalents of CIP
|
14.4
|
|
|
209.2
|
|
|
10.0
|
|
Accounts receivable and other assets of CIP
|
—
|
|
|
1.5
|
|
|
—
|
|
Investments of CIP
|
10.9
|
|
|
567.0
|
|
|
—
|
|
Total assets
|
25.3
|
|
|
777.7
|
|
|
10.0
|
|
|
|
|
|
|
|
|||
Debt of CIP
|
—
|
|
|
601.4
|
|
|
—
|
|
Other liabilities of CIP
|
0.7
|
|
|
176.3
|
|
|
—
|
|
Total liabilities
|
0.7
|
|
|
777.7
|
|
|
—
|
|
Total equity
|
24.6
|
|
|
—
|
|
|
10.0
|
|
Total liabilities and equity
|
25.3
|
|
|
777.7
|
|
|
10.0
|
|
|
For the three months ended March 31, 2016
|
|
$ in millions
|
VIEs
|
|
Cash and cash equivalents of CIP
|
17.7
|
|
Accounts receivable and other assets of CIP
|
1.1
|
|
Investments of CIP
|
77.4
|
|
Total assets
|
96.2
|
|
|
|
|
Debt of CIP
|
—
|
|
Other liabilities of CIP
|
2.3
|
|
Total liabilities
|
2.3
|
|
Total equity
|
93.9
|
|
Total liabilities and equity
|
96.2
|
|
|
As of March 31, 2016
|
|||||||||||||
$ 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 Measured at NAV as a practical expedient
|
|||||
Assets:
|
|
|
|
|
|
|
|
|
|
|||||
Bank loans
|
3,014.4
|
|
|
—
|
|
|
3,014.4
|
|
|
—
|
|
|
—
|
|
Bonds
|
400.8
|
|
|
—
|
|
|
400.8
|
|
|
—
|
|
|
—
|
|
Equity securities
|
134.5
|
|
|
130.2
|
|
|
4.3
|
|
|
—
|
|
|
—
|
|
Equity and fixed income mutual funds
|
37.2
|
|
|
37.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Investments in other private equity funds
|
52.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
52.5
|
|
Total assets at fair value
|
3,639.4
|
|
|
167.4
|
|
|
3,419.5
|
|
|
—
|
|
|
52.5
|
|
|
As of December 31, 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 Measured at NAV as a practical expedient
|
|||||
Assets:
|
|
|
|
|
|
|
|
|
|
|||||
CLO collateral assets:
|
|
|
|
|
|
|
|
|
|
|||||
Bank loans
|
5,179.6
|
|
|
—
|
|
|
5,179.6
|
|
|
—
|
|
|
—
|
|
Bonds
|
71.1
|
|
|
—
|
|
|
71.1
|
|
|
—
|
|
|
—
|
|
Equity securities
|
0.9
|
|
|
—
|
|
|
0.9
|
|
|
—
|
|
|
—
|
|
Private equity fund assets:
|
|
|
|
|
|
|
|
|
|
|||||
Equity securities
|
364.6
|
|
|
7.7
|
|
|
—
|
|
|
356.9
|
|
|
—
|
|
Debt Securities
|
31.7
|
|
|
—
|
|
|
—
|
|
|
31.7
|
|
|
—
|
|
Investments in other private equity funds
|
368.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
368.2
|
|
Total assets at fair value
|
6,016.1
|
|
|
7.7
|
|
|
5,251.6
|
|
|
388.6
|
|
|
368.2
|
|
|
Three months ended March 31, 2016
|
|
Three months ended March 31, 2015
|
||||||||
$ in millions
|
Level 3 Assets
|
|
Level 3 Liabilities
|
|
Level 3 Assets
|
|
Level 3 Liabilities
|
||||
Beginning balance
|
388.6
|
|
|
—
|
|
|
363.9
|
|
|
(5,149.6
|
)
|
Adjustment for adoption of ASU 2014-13
|
—
|
|
|
—
|
|
|
—
|
|
|
5,149.6
|
|
Adjustment for adoption of ASU 2015-02
|
(388.6
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
Purchases
|
—
|
|
|
—
|
|
|
17.1
|
|
|
—
|
|
Sales
|
—
|
|
|
—
|
|
|
(27.0
|
)
|
|
—
|
|
Gains and losses included in the Condensed Consolidated Statements of Income*
|
—
|
|
|
—
|
|
|
(2.5
|
)
|
|
—
|
|
Transfers to Levels 1 and 2**
|
—
|
|
|
—
|
|
|
(8.4
|
)
|
|
—
|
|
Ending balance
|
—
|
|
|
—
|
|
|
343.1
|
|
|
—
|
|
*
|
Included in gains/(losses) of CIP, net in the Condensed Consolidated Statements of Income for the
three months ended
March 31, 2015
are $
4.2 million
in net unrealized losses attributable to investments still held at
March 31, 2015
by CIP.
|
**
|
During the
three months ended
March 31, 2015
,
$7.8 million
of equity securities held by consolidated private equity funds were transferred from Level 3 to Level 2 due to the legal lock up requirements of of securities following the public offering of the underlying companies. For transfers due to public offerings, the company's policy is to use the fair value of the transferred security at the end of the period.
|
Assets and Liabilities *
|
|
Fair Value at
December 31, 2015
($ in millions)
|
|
Valuation Technique
|
|
Unobservable Inputs
|
|
Range
|
|
Weighted Average (by fair value)
|
Private Equity Funds --Equity Securities
|
|
320.0
|
|
Market Comparable
|
|
Revenue Multiple
|
|
NA
|
|
3.2x
|
|
|
|
|
|
|
Discount
|
|
25% - 50%
|
|
25.0%
|
|
|
|
|
|
|
Published valuation and/or broker quotes for similar types of assets
|
|
$25-101 million
|
|
$44.4 million
|
*
|
Excluded from the table above are certain equity and debt securities held by consolidated private equity funds valued using recent private market transactions (
December 31, 2015
:
$61.2 million
) and third party appraisals (
December 31, 2015
:
$7.3 million
).
|
|
|
March 31, 2016
|
|
December 31, 2015
|
||||||||||||
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)
|
|
$52.5
|
|
$59.6
|
|
7.6 years
|
|
|
$368.2
|
|
|
|
$218.1
|
|
|
2.8 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.
|
|
Three months ended March 31,
|
||||
$ in millions
|
2016
|
|
2015
|
||
Affiliated operating revenues:
|
|
|
|
||
Investment management fees
|
796.9
|
|
|
881.4
|
|
Service and distribution fees
|
197.5
|
|
|
212.0
|
|
Performance fees
|
10.4
|
|
|
10.8
|
|
Other
|
21.8
|
|
|
27.6
|
|
Total affiliated operating revenues
|
1,026.6
|
|
|
1,131.8
|
|
$ in millions
|
March 31, 2016
|
|
December 31, 2015
|
||
Affiliated asset balances:
|
|
|
|
||
Cash and cash equivalents
|
272.2
|
|
|
383.3
|
|
Unsettled fund receivables
|
363.3
|
|
|
166.7
|
|
Accounts receivable
|
299.7
|
|
|
317.7
|
|
Investments
|
903.5
|
|
|
982.7
|
|
Assets held for policyholders
|
6,577.9
|
|
|
6,051.2
|
|
Other assets
|
2.0
|
|
|
3.4
|
|
Total affiliated asset balances
|
8,418.6
|
|
|
7,905.0
|
|
|
|
|
|
||
Affiliated liability balances:
|
|
|
|
||
Accrued compensation and benefits
|
84.4
|
|
|
105.0
|
|
Accounts payable and accrued expenses
|
84.8
|
|
|
82.9
|
|
Unsettled fund payables
|
484.4
|
|
|
248.2
|
|
Total affiliated liability balances
|
653.6
|
|
|
436.1
|
|
|
Index expressed in currency
|
Three months ended March 31,
|
||||
Equity Index
|
2016
|
|
2015
|
|||
S&P 500
|
U.S. Dollar
|
0.8
|
%
|
|
0.4
|
%
|
FTSE 100
|
British Pound
|
(1.1
|
)%
|
|
3.2
|
%
|
FTSE 100
|
U.S. Dollar
|
(3.4
|
)%
|
|
(1.7
|
)%
|
Nikkei 225
|
Japanese Yen
|
(12.0
|
)%
|
|
10.1
|
%
|
Nikkei 225
|
U.S. Dollar
|
(5.6
|
)%
|
|
9.6
|
%
|
MSCI Emerging Markets
|
U.S. Dollar
|
5.4
|
%
|
|
1.9
|
%
|
Bond Index
|
|
|
|
|
||
Barclays U.S. Aggregate Bond
|
U.S. Dollar
|
3.0
|
%
|
|
1.6
|
%
|
•
|
Continued to see the benefits of the recent investment in our institutional business with overall positive flows at a time of significant market volatility. New business wins in Germany included flows into the Global Targeted Return Select Fund, a new version of the proven multi-asset Global Targeted Return (GTR) capability that complies with the German regulatory requirements;
|
•
|
Asia Pacific had significant business wins in Japan and in our Great Wall Joint Venture in China, and won several 2015 Best of the Best Awards by Asia Asset Management including our Hong Kong office winning "Best Institutional House" and the "Regional Best Client Servicing" awards. The Japan business also experienced renewed interest in our U.S. REIT product; and
|
•
|
PowerShares Canada launched the PowerShares DWA Global Momentum Index ETF (DWG) which became the very first product listed on the new Canadian NEO exchange.
|
•
|
Results of Operations (
three months ended
March 31, 2016
compared to
three months ended
March 31, 2015
);
|
•
|
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 March 31,
|
||||
U.S. GAAP Financial Measures Summary
|
2016
|
|
2015
|
||
Operating revenues
|
1,148.7
|
|
|
1,291.6
|
|
Operating income
|
274.4
|
|
|
338.1
|
|
Operating margin
|
23.9
|
%
|
|
26.2
|
%
|
Net income attributable to Invesco Ltd.
|
161.0
|
|
|
259.6
|
|
Diluted EPS
|
0.38
|
|
|
0.60
|
|
Debt/equity ratio including CIP (%)
|
64.5
|
%
|
|
79.7
|
%
|
|
|
|
|
||
Non-GAAP Financial Measures Summary
|
|
|
|
||
Net revenues
(1)
|
818.1
|
|
|
917.5
|
|
Adjusted operating income
(2)
|
307.1
|
|
|
374.4
|
|
Adjusted operating margin
(2)
|
37.5
|
%
|
|
40.8
|
%
|
Adjusted net income attributable to Invesco Ltd.
(3)
|
204.8
|
|
|
272.1
|
|
Adjusted diluted EPS
(3)
|
0.49
|
|
|
0.63
|
|
Debt/equity ratio excluding CIP (%)
(4)
|
26.2
|
%
|
|
19.6
|
%
|
|
|
|
|
||
Assets Under Management
|
|
|
|
||
Ending AUM (billions)
|
771.5
|
|
|
798.3
|
|
Average AUM (billions)
|
747.5
|
|
|
795.4
|
|
(1)
|
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.
|
(2)
|
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.
|
(3)
|
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.
|
(4)
|
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
|
24
|
%
|
16
|
%
|
18
|
%
|
|
12
|
%
|
6
|
%
|
32
|
%
|
U.S. Growth
|
27
|
%
|
27
|
%
|
27
|
%
|
|
27
|
%
|
96
|
%
|
35
|
%
|
U.S. Value
|
29
|
%
|
35
|
%
|
33
|
%
|
|
29
|
%
|
35
|
%
|
35
|
%
|
Sector Funds
|
1
|
%
|
3
|
%
|
5
|
%
|
|
26
|
%
|
12
|
%
|
14
|
%
|
U.K.
|
93
|
%
|
100
|
%
|
100
|
%
|
|
92
|
%
|
99
|
%
|
100
|
%
|
Canadian
|
28
|
%
|
27
|
%
|
57
|
%
|
|
21
|
%
|
21
|
%
|
47
|
%
|
Asian
|
92
|
%
|
90
|
%
|
89
|
%
|
|
78
|
%
|
81
|
%
|
70
|
%
|
European
|
63
|
%
|
94
|
%
|
100
|
%
|
|
56
|
%
|
94
|
%
|
95
|
%
|
Global
|
60
|
%
|
59
|
%
|
84
|
%
|
|
66
|
%
|
67
|
%
|
90
|
%
|
Global Ex U.S. and Emerging Markets
|
97
|
%
|
90
|
%
|
99
|
%
|
|
99
|
%
|
90
|
%
|
98
|
%
|
Fixed Income
|
|
|
|
|
|
|
|
||||||
Money Market
|
91
|
%
|
71
|
%
|
71
|
%
|
|
96
|
%
|
97
|
%
|
97
|
%
|
U.S. Fixed Income
|
71
|
%
|
93
|
%
|
94
|
%
|
|
81
|
%
|
77
|
%
|
92
|
%
|
Global Fixed Income
|
41
|
%
|
68
|
%
|
73
|
%
|
|
35
|
%
|
33
|
%
|
52
|
%
|
Stable Value
|
100
|
%
|
100
|
%
|
100
|
%
|
|
100
|
%
|
100
|
%
|
100
|
%
|
Other
|
|
|
|
|
|
|
|
||||||
Alternatives
|
51
|
%
|
69
|
%
|
69
|
%
|
|
34
|
%
|
48
|
%
|
66
|
%
|
Balanced
|
25
|
%
|
39
|
%
|
63
|
%
|
|
41
|
%
|
93
|
%
|
100
|
%
|
(1)
|
AUM measured in the one-, three-, and five-year peer group rankings represents
58%
,
57%
, and
56%
of total Invesco AUM, respectively, and AUM measured versus benchmark on a one-, three-, and five-year basis represents
72%
,
69%
, and
67%
of total Invesco AUM, respectively, as of
March 31, 2016
. Peer group rankings are sourced from a widely-used third party ranking agency in each fund's market (Lipper, Morningstar, IA, 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 March 31,
|
||||||||||||||||
|
2016
|
|
2015
|
||||||||||||||
$ in billions
|
Total AUM
|
|
Active
|
|
Passive
|
|
Total AUM
|
|
Active
|
|
Passive
|
||||||
December 31
|
775.6
|
|
|
636.5
|
|
|
139.1
|
|
|
792.4
|
|
|
651.0
|
|
|
141.4
|
|
Long-term inflows
|
42.8
|
|
|
32.9
|
|
|
9.9
|
|
|
50.5
|
|
|
40.6
|
|
|
9.9
|
|
Long-term outflows
|
(44.1
|
)
|
|
(32.4
|
)
|
|
(11.7
|
)
|
|
(40.2
|
)
|
|
(33.8
|
)
|
|
(6.4
|
)
|
Long-term net flows
|
(1.3
|
)
|
|
0.5
|
|
|
(1.8
|
)
|
|
10.3
|
|
|
6.8
|
|
|
3.5
|
|
Net flows in Invesco PowerShares QQQ fund
|
(2.6
|
)
|
|
—
|
|
|
(2.6
|
)
|
|
(2.6
|
)
|
|
—
|
|
|
(2.6
|
)
|
Net flows in institutional money market funds
|
3.8
|
|
|
4.1
|
|
|
(0.3
|
)
|
|
(6.0
|
)
|
|
(6.0
|
)
|
|
—
|
|
Total net flows
|
(0.1
|
)
|
|
4.6
|
|
|
(4.7
|
)
|
|
1.7
|
|
|
0.8
|
|
|
0.9
|
|
Market gains and losses/reinvestment
|
(3.0
|
)
|
|
(2.8
|
)
|
|
(0.2
|
)
|
|
18.2
|
|
|
16.8
|
|
|
1.4
|
|
Acquisitions/dispositions, net
|
(3.6
|
)
|
|
(0.4
|
)
|
|
(3.2
|
)
|
|
(0.7
|
)
|
|
—
|
|
|
(0.7
|
)
|
Foreign currency translation
|
2.6
|
|
|
2.5
|
|
|
0.1
|
|
|
(13.3
|
)
|
|
(13.3
|
)
|
|
—
|
|
March 31
|
771.5
|
|
|
640.4
|
|
|
131.1
|
|
|
798.3
|
|
|
655.3
|
|
|
143.0
|
|
Average AUM
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Average long-term AUM
|
649.2
|
|
|
559.8
|
|
|
89.4
|
|
|
685.0
|
|
|
581.8
|
|
|
103.2
|
|
Average AUM
|
747.5
|
|
|
620.6
|
|
|
126.9
|
|
|
795.4
|
|
|
652.7
|
|
|
142.7
|
|
Revenue yield
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Gross revenue yield on AUM
(1)
|
62.1
|
|
|
72.1
|
|
|
13.8
|
|
|
65.4
|
|
|
76.8
|
|
|
13.3
|
|
Gross revenue yield on AUM before performance fees
(1)
|
61.3
|
|
|
71.2
|
|
|
13.8
|
|
|
63.0
|
|
|
73.9
|
|
|
13.3
|
|
Net revenue yield on AUM
(2)
|
43.8
|
|
|
49.9
|
|
|
13.8
|
|
|
46.1
|
|
|
53.3
|
|
|
13.3
|
|
Net revenue yield on AUM before performance fees
(2)
|
42.9
|
|
|
48.9
|
|
|
13.8
|
|
|
43.5
|
|
|
50.1
|
|
|
13.3
|
|
(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
March 31, 2016
for our JVs in China was
$7.6 billion
(
three months ended
March 31, 2015
:
$5.0 billion
). It is appropriate to exclude the average AUM of our JVs for purposes of computing gross revenue yield on AUM because the revenues resulting from these AUM are not presented in our operating revenues. Under U.S. GAAP, our share of the net income of the JVs is recorded as equity in earnings of unconsolidated affiliates on our Condensed Consolidated Statements of Income. Additionally, the numerator of the gross revenue yield measure, operating revenues, excludes the management fees earned from CIP; however, the denominator of the measure includes the AUM of these investment products. Therefore, the gross revenue yield measure is not considered representative of the company's true effective fee rate from AUM.
|
(2)
|
Net revenue yield on AUM is equal to annualized net revenues divided by average AUM. See “Schedule of Non-GAAP Information” for a reconciliation of operating revenues to net revenues.
|
Foreign Exchange Rates
|
March 31, 2016
|
|
December 31, 2015
|
|
March 31, 2015
|
|
December 31, 2014
|
||||
Pound Sterling ($ per £)
|
1.438
|
|
|
1.474
|
|
|
1.485
|
|
|
1.559
|
|
Canadian Dollar (CAD per $)
|
1.293
|
|
|
1.389
|
|
|
1.267
|
|
|
1.158
|
|
Japan (¥ per $)
|
112.355
|
|
|
120.275
|
|
|
119.905
|
|
|
119.880
|
|
Euro ($ per Euro)
|
1.139
|
|
|
1.086
|
|
|
1.074
|
|
|
1.210
|
|
$ in billions
|
Total
|
|
Retail
|
|
Institutional
|
|||
December 31, 2015
|
775.6
|
|
|
514.8
|
|
|
260.8
|
|
Long-term inflows
|
42.8
|
|
|
33.1
|
|
|
9.7
|
|
Long-term outflows
|
(44.1
|
)
|
|
(35.8
|
)
|
|
(8.3
|
)
|
Long-term net flows
|
(1.3
|
)
|
|
(2.7
|
)
|
|
1.4
|
|
Net flows in Invesco PowerShares QQQ fund
|
(2.6
|
)
|
|
(2.6
|
)
|
|
—
|
|
Net flows in institutional money market funds
|
3.8
|
|
|
—
|
|
|
3.8
|
|
Total net flows
|
(0.1
|
)
|
|
(5.3
|
)
|
|
5.2
|
|
Market gains and losses/reinvestment
|
(3.0
|
)
|
|
(3.1
|
)
|
|
0.1
|
|
Acquisitions/dispositions, net
(6)
|
(3.6
|
)
|
|
—
|
|
|
(3.6
|
)
|
Foreign currency translation
|
2.6
|
|
|
1.3
|
|
|
1.3
|
|
March 31, 2016
|
771.5
|
|
|
507.7
|
|
|
263.8
|
|
|
|
|
|
|
|
|||
December 31, 2014
|
792.4
|
|
|
532.5
|
|
|
259.9
|
|
Long-term inflows
|
50.5
|
|
|
40.3
|
|
|
10.2
|
|
Long-term outflows
|
(40.2
|
)
|
|
(32.8
|
)
|
|
(7.4
|
)
|
Long-term net flows
|
10.3
|
|
|
7.5
|
|
|
2.8
|
|
Net flows in Invesco PowerShares QQQ fund
|
(2.6
|
)
|
|
(2.6
|
)
|
|
—
|
|
Net flows in institutional money market funds
|
(6.0
|
)
|
|
—
|
|
|
(6.0
|
)
|
Total net flows
|
1.7
|
|
|
4.9
|
|
|
(3.2
|
)
|
Market gains and losses/reinvestment
|
18.2
|
|
|
14.9
|
|
|
3.3
|
|
Acquisitions/dispositions, net
(6)
|
(0.7
|
)
|
|
(0.7
|
)
|
|
—
|
|
Foreign currency translation
|
(13.3
|
)
|
|
(10.9
|
)
|
|
(2.4
|
)
|
March 31, 2015
|
798.3
|
|
|
540.7
|
|
|
257.6
|
|
$ in billions
|
Total
|
|
Retail
|
|
Institutional
|
|||
December 31, 2015
|
139.1
|
|
|
118.7
|
|
|
20.4
|
|
Long-term inflows
|
9.9
|
|
|
9.9
|
|
|
—
|
|
Long-term outflows
|
(11.7
|
)
|
|
(10.2
|
)
|
|
(1.5
|
)
|
Long-term net flows
|
(1.8
|
)
|
|
(0.3
|
)
|
|
(1.5
|
)
|
Net flows in Invesco PowerShares QQQ fund
|
(2.6
|
)
|
|
(2.6
|
)
|
|
—
|
|
Net flows in institutional money market funds
|
(0.3
|
)
|
|
—
|
|
|
(0.3
|
)
|
Total net flows
|
(4.7
|
)
|
|
(2.9
|
)
|
|
(1.8
|
)
|
Market gains and losses/reinvestment
|
(0.2
|
)
|
|
(0.1
|
)
|
|
(0.1
|
)
|
Acquisitions/dispositions, net
(6)
|
(3.2
|
)
|
|
—
|
|
|
(3.2
|
)
|
Foreign currency translation
|
0.1
|
|
|
—
|
|
|
0.1
|
|
March 31, 2016
|
131.1
|
|
|
115.7
|
|
|
15.4
|
|
|
|
|
|
|
|
|||
December 31, 2014
|
141.4
|
|
|
119.7
|
|
|
21.7
|
|
Long-term inflows
|
9.9
|
|
|
8.9
|
|
|
1.0
|
|
Long-term outflows
|
(6.4
|
)
|
|
(5.8
|
)
|
|
(0.6
|
)
|
Long-term net flows
|
3.5
|
|
|
3.1
|
|
|
0.4
|
|
Net flows in Invesco PowerShares QQQ fund
|
(2.6
|
)
|
|
(2.6
|
)
|
|
—
|
|
Net flows in institutional money market funds
|
—
|
|
|
—
|
|
|
—
|
|
Total net flows
|
0.9
|
|
|
0.5
|
|
|
0.4
|
|
Market gains and losses/reinvestment
|
1.4
|
|
|
1.3
|
|
|
0.1
|
|
Acquisitions/dispositions, net
(6)
|
(0.7
|
)
|
|
(0.7
|
)
|
|
—
|
|
Foreign currency translation
|
—
|
|
|
—
|
|
|
—
|
|
March 31, 2015
|
143.0
|
|
|
120.8
|
|
|
22.2
|
|
$ in billions
|
Total
|
|
Equity
|
|
Fixed Income
|
|
Balanced
|
|
Money Market
|
|
Alternatives
(3)
|
||||||
December 31, 2015
|
775.6
|
|
|
370.9
|
|
|
187.9
|
|
|
48.1
|
|
|
64.6
|
|
|
104.1
|
|
Long-term inflows
|
42.8
|
|
|
20.4
|
|
|
9.7
|
|
|
2.0
|
|
|
1.0
|
|
|
9.7
|
|
Long-term outflows
|
(44.1
|
)
|
|
(24.6
|
)
|
|
(10.1
|
)
|
|
(3.6
|
)
|
|
(1.0
|
)
|
|
(4.8
|
)
|
Long-term net flows
|
(1.3
|
)
|
|
(4.2
|
)
|
|
(0.4
|
)
|
|
(1.6
|
)
|
|
—
|
|
|
4.9
|
|
Net flows in Invesco PowerShares QQQ fund
|
(2.6
|
)
|
|
(2.6
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net flows in institutional money market funds
|
3.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3.8
|
|
|
—
|
|
Total net flows
|
(0.1
|
)
|
|
(6.8
|
)
|
|
(0.4
|
)
|
|
(1.6
|
)
|
|
3.8
|
|
|
4.9
|
|
Market gains and losses/reinvestment
|
(3.0
|
)
|
|
(5.5
|
)
|
|
2.0
|
|
|
(0.6
|
)
|
|
0.2
|
|
|
0.9
|
|
Acquisitions/dispositions, net
(6)
|
(3.6
|
)
|
|
—
|
|
|
(2.7
|
)
|
|
—
|
|
|
—
|
|
|
(0.9
|
)
|
Foreign currency translation
|
2.6
|
|
|
0.9
|
|
|
0.3
|
|
|
0.9
|
|
|
—
|
|
|
0.5
|
|
March 31, 2016
|
771.5
|
|
|
359.5
|
|
|
187.1
|
|
|
46.8
|
|
|
68.6
|
|
(4)
|
109.5
|
|
Average AUM
|
747.5
|
|
|
344.4
|
|
|
185.3
|
|
|
45.7
|
|
|
67.1
|
|
|
105.0
|
|
% of total average AUM
|
100.0
|
%
|
|
46.1
|
%
|
|
24.8
|
%
|
|
6.1
|
%
|
|
9.0
|
%
|
|
14.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
December 31, 2014
|
792.4
|
|
|
384.4
|
|
|
181.6
|
|
|
50.6
|
|
|
76.5
|
|
|
99.3
|
|
Long-term inflows
|
50.5
|
|
|
24.5
|
|
|
10.8
|
|
|
4.1
|
|
|
0.7
|
|
|
10.4
|
|
Long-term outflows
|
(40.2
|
)
|
|
(21.5
|
)
|
|
(7.2
|
)
|
|
(3.2
|
)
|
|
(0.9
|
)
|
|
(7.4
|
)
|
Long-term net flows
|
10.3
|
|
|
3.0
|
|
|
3.6
|
|
|
0.9
|
|
|
(0.2
|
)
|
|
3.0
|
|
Net flows in Invesco PowerShares QQQ fund
|
(2.6
|
)
|
|
(2.6
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net flows in institutional money market funds
|
(6.0
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6.0
|
)
|
|
—
|
|
Total net flows
|
1.7
|
|
|
0.4
|
|
|
3.6
|
|
|
0.9
|
|
|
(6.2
|
)
|
|
3.0
|
|
Market gains and losses/reinvestment
|
18.2
|
|
|
14.9
|
|
|
1.6
|
|
|
1.9
|
|
|
(0.1
|
)
|
|
(0.1
|
)
|
Acquisitions/dispositions, net
(6)
|
(0.7
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.7
|
)
|
Foreign currency translation
|
(13.3
|
)
|
|
(6.9
|
)
|
|
(2.4
|
)
|
|
(2.8
|
)
|
|
—
|
|
|
(1.2
|
)
|
March 31, 2015
|
798.3
|
|
|
392.8
|
|
|
184.4
|
|
|
50.6
|
|
|
70.2
|
|
(4)
|
100.3
|
|
Average AUM
|
795.4
|
|
|
388.1
|
|
|
182.9
|
|
|
49.7
|
|
|
75.1
|
|
|
99.6
|
|
% of total average AUM
|
100.0
|
%
|
|
48.8
|
%
|
|
23.0
|
%
|
|
6.2
|
%
|
|
9.4
|
%
|
|
12.5
|
%
|
$ in billions
|
Total
|
|
Equity
|
|
Fixed Income
|
|
Balanced
|
|
Money Market
|
|
Alternatives
(3)
|
||||||
December 31, 2015
|
139.1
|
|
|
91.0
|
|
|
38.6
|
|
|
—
|
|
|
0.4
|
|
|
9.1
|
|
Long-term inflows
|
9.9
|
|
|
7.1
|
|
|
2.1
|
|
|
—
|
|
|
—
|
|
|
0.7
|
|
Long-term outflows
|
(11.7
|
)
|
|
(8.3
|
)
|
|
(2.6
|
)
|
|
—
|
|
|
—
|
|
|
(0.8
|
)
|
Long-term net flows
|
(1.8
|
)
|
|
(1.2
|
)
|
|
(0.5
|
)
|
|
—
|
|
|
—
|
|
|
(0.1
|
)
|
Net flows in Invesco PowerShares QQQ fund
|
(2.6
|
)
|
|
(2.6
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net flows in institutional money market funds
|
(0.3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.3
|
)
|
|
—
|
|
Total net flows
|
(4.7
|
)
|
|
(3.8
|
)
|
|
(0.5
|
)
|
|
—
|
|
|
(0.3
|
)
|
|
(0.1
|
)
|
Market gains and losses/reinvestment
|
(0.2
|
)
|
|
(0.1
|
)
|
|
0.2
|
|
|
—
|
|
|
—
|
|
|
(0.3
|
)
|
Acquisitions/dispositions, net
(6)
|
(3.2
|
)
|
|
—
|
|
|
(2.7
|
)
|
|
—
|
|
|
—
|
|
|
(0.5
|
)
|
Foreign currency translation
|
0.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
March 31, 2016
|
131.1
|
|
|
87.1
|
|
|
35.6
|
|
|
—
|
|
|
0.1
|
|
|
8.3
|
|
Average AUM
|
126.9
|
|
|
82.7
|
|
|
35.5
|
|
|
—
|
|
|
0.2
|
|
|
8.5
|
|
% of total average AUM
|
100.0
|
%
|
|
65.2
|
%
|
|
28.0
|
%
|
|
—
|
%
|
|
0.2
|
%
|
|
6.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
December 31, 2014
|
141.4
|
|
|
88.2
|
|
|
41.1
|
|
|
—
|
|
|
—
|
|
|
12.1
|
|
Long-term inflows
|
9.9
|
|
|
6.5
|
|
|
2.0
|
|
|
—
|
|
|
—
|
|
|
1.4
|
|
Long-term outflows
|
(6.4
|
)
|
|
(3.5
|
)
|
|
(1.2
|
)
|
|
—
|
|
|
—
|
|
|
(1.7
|
)
|
Long-term net flows
|
3.5
|
|
|
3.0
|
|
|
0.8
|
|
|
—
|
|
|
—
|
|
|
(0.3
|
)
|
Net flows in Invesco PowerShares QQQ fund
|
(2.6
|
)
|
|
(2.6
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net flows in institutional money market funds
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Total net flows
|
0.9
|
|
|
0.4
|
|
|
0.8
|
|
|
—
|
|
|
—
|
|
|
(0.3
|
)
|
Market gains and losses/reinvestment
|
1.4
|
|
|
1.4
|
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
(0.1
|
)
|
Acquisitions/dispositions, net
(6)
|
(0.7
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.7
|
)
|
Foreign currency translation
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
March 31, 2015
|
143.0
|
|
|
90.0
|
|
|
42.0
|
|
|
—
|
|
|
—
|
|
|
11.0
|
|
Average AUM
|
142.7
|
|
|
89.0
|
|
|
42.1
|
|
|
—
|
|
|
—
|
|
|
11.6
|
|
% of total average AUM
|
100.0
|
%
|
|
62.4
|
%
|
|
29.5
|
%
|
|
—
|
%
|
|
—
|
%
|
|
8.1
|
%
|
$ in billions
|
Total
|
|
U.S.
|
|
Canada
|
|
U.K.
|
|
Continental Europe
|
|
Asia
|
||||||
December 31, 2015
|
775.6
|
|
|
510.7
|
|
|
21.7
|
|
|
104.2
|
|
|
75.4
|
|
|
63.6
|
|
Long-term inflows
|
42.8
|
|
|
24.4
|
|
|
1.0
|
|
|
4.2
|
|
|
6.6
|
|
|
6.6
|
|
Long-term outflows
|
(44.1
|
)
|
|
(26.7
|
)
|
|
(1.2
|
)
|
|
(5.0
|
)
|
|
(8.2
|
)
|
|
(3.0
|
)
|
Long-term net flows
|
(1.3
|
)
|
|
(2.3
|
)
|
|
(0.2
|
)
|
|
(0.8
|
)
|
|
(1.6
|
)
|
|
3.6
|
|
Net flows in Invesco PowerShares QQQ fund
|
(2.6
|
)
|
|
(2.6
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net flows in institutional money market funds
|
3.8
|
|
|
5.0
|
|
|
—
|
|
|
(0.8
|
)
|
|
—
|
|
|
(0.4
|
)
|
Total net flows
|
(0.1
|
)
|
|
0.1
|
|
|
(0.2
|
)
|
|
(1.6
|
)
|
|
(1.6
|
)
|
|
3.2
|
|
Market gains and losses/reinvestment
|
(3.0
|
)
|
|
0.3
|
|
|
(0.2
|
)
|
|
(1.0
|
)
|
|
(1.3
|
)
|
|
(0.8
|
)
|
Acquisitions/dispositions, net
(6)
|
(3.6
|
)
|
|
(3.6
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Foreign currency translation
|
2.6
|
|
|
—
|
|
|
1.6
|
|
|
(2.4
|
)
|
|
2.4
|
|
|
1.0
|
|
March 31, 2016
|
771.5
|
|
|
507.5
|
|
|
22.9
|
|
|
99.2
|
|
|
74.9
|
|
|
67.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
December 31, 2014
|
792.4
|
|
|
532.1
|
|
|
25.8
|
|
|
105.1
|
|
|
71.1
|
|
|
58.3
|
|
Long-term inflows
|
50.5
|
|
|
26.1
|
|
|
1.0
|
|
|
4.9
|
|
|
12.2
|
|
|
6.3
|
|
Long-term outflows
|
(40.2
|
)
|
|
(22.0
|
)
|
|
(1.0
|
)
|
|
(4.3
|
)
|
|
(7.2
|
)
|
|
(5.7
|
)
|
Long-term net flows
|
10.3
|
|
|
4.1
|
|
|
—
|
|
|
0.6
|
|
|
5.0
|
|
|
0.6
|
|
Net flows in Invesco PowerShares QQQ fund
|
(2.6
|
)
|
|
(2.6
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net flows in institutional money market funds
|
(6.0
|
)
|
|
(5.6
|
)
|
|
(0.1
|
)
|
|
(0.1
|
)
|
|
—
|
|
|
(0.2
|
)
|
Total net flows
|
1.7
|
|
|
(4.1
|
)
|
|
(0.1
|
)
|
|
0.5
|
|
|
5.0
|
|
|
0.4
|
|
Market gains and losses/reinvestment
|
18.2
|
|
|
5.3
|
|
|
1.5
|
|
|
5.6
|
|
|
3.7
|
|
|
2.1
|
|
Acquisitions/dispositions, net
(6)
|
(0.7
|
)
|
|
(0.7
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Foreign currency translation
|
(13.3
|
)
|
|
—
|
|
|
(2.3
|
)
|
|
(4.9
|
)
|
|
(5.6
|
)
|
|
(0.5
|
)
|
March 31, 2015
|
798.3
|
|
|
532.6
|
|
|
24.9
|
|
|
106.3
|
|
|
74.2
|
|
|
60.3
|
|
$ in billions
|
Total
|
|
U.S.
|
|
Canada
|
|
U.K.
|
|
Continental Europe
|
|
Asia
|
||||||
December 31, 2015
|
139.1
|
|
|
134.4
|
|
|
0.4
|
|
|
—
|
|
|
1.9
|
|
|
2.4
|
|
Long-term inflows
|
9.9
|
|
|
9.7
|
|
|
0.1
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
Long-term outflows
|
(11.7
|
)
|
|
(11.4
|
)
|
|
(0.1
|
)
|
|
—
|
|
|
(0.2
|
)
|
|
—
|
|
Long-term net flows
|
(1.8
|
)
|
|
(1.7
|
)
|
|
—
|
|
|
—
|
|
|
(0.1
|
)
|
|
—
|
|
Net flows in Invesco PowerShares QQQ fund
|
(2.6
|
)
|
|
(2.6
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net flows in institutional money market funds
|
(0.3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.3
|
)
|
Total net flows
|
(4.7
|
)
|
|
(4.3
|
)
|
|
—
|
|
|
—
|
|
|
(0.1
|
)
|
|
(0.3
|
)
|
Market gains and losses/reinvestment
|
(0.2
|
)
|
|
(0.2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Acquisitions/dispositions, net
(6)
|
(3.2
|
)
|
|
(3.2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Foreign currency translation
|
0.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
March 31, 2016
|
131.1
|
|
|
126.7
|
|
|
0.4
|
|
|
—
|
|
|
1.8
|
|
|
2.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
December 31, 2014
|
141.4
|
|
|
137.6
|
|
|
0.2
|
|
|
—
|
|
|
1.8
|
|
|
1.8
|
|
Long-term inflows
|
9.9
|
|
|
9.6
|
|
|
—
|
|
|
—
|
|
|
0.2
|
|
|
0.1
|
|
Long-term outflows
|
(6.4
|
)
|
|
(6.1
|
)
|
|
—
|
|
|
—
|
|
|
(0.2
|
)
|
|
(0.1
|
)
|
Long-term net flows
|
3.5
|
|
|
3.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net flows in Invesco PowerShares QQQ fund
|
(2.6
|
)
|
|
(2.6
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net flows in institutional money market funds
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Total net flows
|
0.9
|
|
|
0.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Market gains and losses/reinvestment
|
1.4
|
|
|
1.2
|
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
Acquisitions/dispositions, net
(6)
|
(0.7
|
)
|
|
(0.7
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Foreign currency translation
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
March 31, 2015
|
143.0
|
|
|
139.0
|
|
|
0.3
|
|
|
—
|
|
|
1.8
|
|
|
1.9
|
|
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, 2015
.
|
(4)
|
Ending Money Market AUM includes
$62.8 billion
in institutional money market AUM and
$5.8 billion
in retail money market AUM.
|
(5)
|
Client domicile disclosure groups AUM by the domicile of the underlying clients.
|
|
Three months ended March 31,
|
||||||||||
|
2016
|
|
2015
|
||||||||
$ in millions
|
Impact of CIP
|
|
Invesco Ltd. Consolidated
|
|
Impact of CIP
|
|
Invesco Ltd. Consolidated
|
||||
Total operating revenues
|
(5.5
|
)
|
|
1,148.7
|
|
|
(9.3
|
)
|
|
1,291.6
|
|
Total operating expenses
|
1.8
|
|
|
874.3
|
|
|
12.2
|
|
|
953.5
|
|
Operating income
|
(7.3
|
)
|
|
274.4
|
|
|
(21.5
|
)
|
|
338.1
|
|
Equity in earnings of unconsolidated affiliates
|
3.5
|
|
|
(12.2
|
)
|
|
(1.7
|
)
|
|
11.8
|
|
Interest and dividend income
|
(0.1
|
)
|
|
3.6
|
|
|
(1.4
|
)
|
|
2.5
|
|
Interest expense
|
—
|
|
|
(23.9
|
)
|
|
—
|
|
|
(18.7
|
)
|
Other gains and losses, net
|
(0.2
|
)
|
|
(4.7
|
)
|
|
(2.7
|
)
|
|
2.7
|
|
Other income/(expense) of CIP, net
|
(7.5
|
)
|
|
(7.5
|
)
|
|
39.5
|
|
|
39.5
|
|
Other income/(expense) of CSIP, net
|
—
|
|
|
—
|
|
|
—
|
|
|
9.4
|
|
Income before taxes
|
(11.6
|
)
|
|
229.7
|
|
|
12.2
|
|
|
385.3
|
|
Income tax provision
|
—
|
|
|
(71.9
|
)
|
|
—
|
|
|
(101.3
|
)
|
Net income
|
(11.6
|
)
|
|
157.8
|
|
|
12.2
|
|
|
284.0
|
|
Net (income)/loss attributable to noncontrolling interests in consolidated entities
|
3.2
|
|
|
3.2
|
|
|
(20.4
|
)
|
|
(24.4
|
)
|
Net income attributable to Invesco Ltd.
|
(8.4
|
)
|
|
161.0
|
|
|
(8.2
|
)
|
|
259.6
|
|
|
|
|
|
|
Variance
|
||||||
|
Three months ended March 31,
|
|
2016 vs 2015
|
||||||||
$ in millions
|
2016
|
|
2015
|
|
$ Change
|
|
% Change
|
||||
Investment management fees
|
913.6
|
|
|
1,001.4
|
|
|
(87.8
|
)
|
|
(8.8
|
)%
|
Service and distribution fees
|
197.7
|
|
|
213.4
|
|
|
(15.7
|
)
|
|
(7.4
|
)%
|
Performance fees
|
14.5
|
|
|
46.8
|
|
|
(32.3
|
)
|
|
(69.0
|
)%
|
Other
|
22.9
|
|
|
30.0
|
|
|
(7.1
|
)
|
|
(23.7
|
)%
|
Total operating revenues
|
1,148.7
|
|
|
1,291.6
|
|
|
(142.9
|
)
|
|
(11.1
|
)%
|
Third-party distribution, service and advisory expenses
|
(347.2
|
)
|
|
(399.1
|
)
|
|
51.9
|
|
|
(13.0
|
)%
|
Proportional share of revenues, net of third-party distribution expenses, from joint venture investments
|
11.1
|
|
|
15.7
|
|
|
(4.6
|
)
|
|
(29.3
|
)%
|
CIP
|
5.5
|
|
|
9.3
|
|
|
(3.8
|
)
|
|
(40.9
|
)%
|
Net revenues
|
818.1
|
|
|
917.5
|
|
|
(99.4
|
)
|
|
(10.8
|
)%
|
|
|
|
|
|
Variance
|
||||||
|
Three months ended March 31,
|
|
2016 vs 2015
|
||||||||
$ in millions
|
2016
|
|
2015
|
|
$ Change
|
|
% Change
|
||||
Employee compensation
|
344.4
|
|
|
360.9
|
|
|
(16.5
|
)
|
|
(4.6
|
)%
|
Third-party distribution, service and advisory
|
347.2
|
|
|
399.1
|
|
|
(51.9
|
)
|
|
(13.0
|
)%
|
Marketing
|
24.9
|
|
|
26.7
|
|
|
(1.8
|
)
|
|
(6.7
|
)%
|
Property, office and technology
|
79.9
|
|
|
76.9
|
|
|
3.0
|
|
|
3.9
|
%
|
General and administrative
|
77.9
|
|
|
89.9
|
|
|
(12.0
|
)
|
|
(13.3
|
)%
|
Total operating expenses
|
874.3
|
|
|
953.5
|
|
|
(79.2
|
)
|
|
(8.3
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
$ in millions
|
Three months ended March 31, 2016
|
|
% of Total Operating Expenses
|
|
% of Operating Revenues
|
|
Three months ended March 31, 2015
|
|
% of Total Operating Expenses
|
|
% of Operating Revenues
|
||||||
Employee compensation
|
344.4
|
|
|
39.4
|
%
|
|
30.0
|
%
|
|
360.9
|
|
|
37.9
|
%
|
|
27.9
|
%
|
Third-party distribution, service and advisory
|
347.2
|
|
|
39.7
|
%
|
|
30.2
|
%
|
|
399.1
|
|
|
41.9
|
%
|
|
30.9
|
%
|
Marketing
|
24.9
|
|
|
2.8
|
%
|
|
2.2
|
%
|
|
26.7
|
|
|
2.8
|
%
|
|
2.1
|
%
|
Property, office and technology
|
79.9
|
|
|
9.2
|
%
|
|
7.0
|
%
|
|
76.9
|
|
|
8.1
|
%
|
|
6.0
|
%
|
General and administrative
|
77.9
|
|
|
8.9
|
%
|
|
6.8
|
%
|
|
89.9
|
|
|
9.4
|
%
|
|
7.0
|
%
|
Total operating expenses
|
874.3
|
|
|
100.0
|
%
|
|
76.1
|
%
|
|
953.5
|
|
|
100.0
|
%
|
|
73.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Variance
|
||||||
|
Three months ended March 31,
|
|
2016 vs 2015
|
||||||||
$ in millions
|
2016
|
|
2015
|
|
$ Change
|
|
% Change
|
||||
Equity in earnings of unconsolidated affiliates
|
(12.2
|
)
|
|
11.8
|
|
|
(24.0
|
)
|
|
N/A
|
|
Interest and dividend income
|
3.6
|
|
|
2.5
|
|
|
1.1
|
|
|
44.0
|
%
|
Interest expense
|
(23.9
|
)
|
|
(18.7
|
)
|
|
(5.2
|
)
|
|
27.8
|
%
|
Other gains and losses, net
|
(4.7
|
)
|
|
2.7
|
|
|
(7.4
|
)
|
|
N/A
|
|
Other income/(expense) of CIP, net
|
(7.5
|
)
|
|
39.5
|
|
|
(47.0
|
)
|
|
N/A
|
|
Other income/(expense) of CSIP, net
|
—
|
|
|
9.4
|
|
|
(9.4
|
)
|
|
(100.0
|
)%
|
Total other income and expenses
|
(44.7
|
)
|
|
47.2
|
|
|
(91.9
|
)
|
|
N/A
|
|
|
Three months ended March 31,
|
||||
$ in millions
|
2016
|
|
2015
|
||
Operating revenues, U.S. GAAP basis
|
1,148.7
|
|
|
1,291.6
|
|
Proportional share of revenues, net of third-party distribution expenses, from joint venture investments
(1)
|
11.1
|
|
|
15.7
|
|
Third party distribution, service and advisory expenses
(2)
|
(347.2
|
)
|
|
(399.1
|
)
|
CIP
(3)
|
5.5
|
|
|
9.3
|
|
Net revenues
|
818.1
|
|
|
917.5
|
|
|
Three months ended March 31,
|
||||
$ in millions
|
2016
|
|
2015
|
||
Operating income, U.S. GAAP basis
|
274.4
|
|
|
338.1
|
|
Proportional share of net operating income from joint venture investments
(1)
|
3.3
|
|
|
7.0
|
|
CIP
(3)
|
7.3
|
|
|
21.5
|
|
Acquisition/disposition related adjustments
(4)
|
9.5
|
|
|
3.9
|
|
Compensation expense related to market valuation changes in deferred compensation plans
(5)
|
(0.2
|
)
|
|
3.9
|
|
Other reconciling items
(6)
|
12.8
|
|
|
—
|
|
Adjusted operating income
|
307.1
|
|
|
374.4
|
|
|
|
|
|
||
Operating margin*
|
23.9
|
%
|
|
26.2
|
%
|
Adjusted operating margin**
|
37.5
|
%
|
|
40.8
|
%
|
|
Three months ended March 31,
|
||||||
$ in millions, except per share data
|
2016
|
|
2015
|
||||
Net income attributable to Invesco Ltd., U.S. GAAP basis
|
161.0
|
|
|
259.6
|
|
||
CIP, eliminated upon consolidation
(3)
|
8.4
|
|
|
8.2
|
|
||
Acquisition/disposition related adjustments, net of tax
(4)
|
27.3
|
|
|
8.3
|
|
||
Deferred compensation plan market valuation changes and dividend income less compensation expense, net of tax
(5)
|
1.1
|
|
|
(0.9
|
)
|
||
Other reconciling items, net of tax
(6)
|
7.0
|
|
|
(3.1
|
)
|
||
Adjusted net income attributable to Invesco Ltd.
|
204.8
|
|
|
272.1
|
|
||
|
|
|
|
||||
Average shares outstanding - diluted
|
418.9
|
|
|
432.5
|
|
||
Diluted EPS
|
|
$0.38
|
|
|
|
$0.60
|
|
Adjusted diluted EPS***
|
|
$0.49
|
|
|
|
$0.63
|
|
*
|
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 March 31,
|
||||
$ in millions, except per share data
|
2016
|
|
2015
|
||
Management fees earned from CIP, eliminated upon consolidation
|
5.0
|
|
|
6.9
|
|
Performance fees earned from CIP, eliminated upon consolidation
|
0.5
|
|
|
2.4
|
|
CIP related adjustments in arriving at net revenues
|
5.5
|
|
|
9.3
|
|
(4)
|
Acquisition/disposition related adjustments
|
|
Three months ended March 31,
|
||||
$ in millions
|
2016
|
|
2015
|
||
Acquisition/disposition related:
|
|
|
|
||
Intangible amortization expense
|
3.5
|
|
|
2.7
|
|
Employee compensation expense
|
5.4
|
|
|
—
|
|
Other acquisition-related item
|
0.6
|
|
|
1.2
|
|
Adjustments to operating income
|
9.5
|
|
|
3.9
|
|
Changes in the fair value of contingent consideration
|
(3.5
|
)
|
|
—
|
|
Other-than-temporary impairment
|
17.8
|
|
|
—
|
|
Taxation:
|
|
|
|
||
Taxation on amortization
|
(0.4
|
)
|
|
(0.4
|
)
|
Taxation on employee compensation expense
|
(2.0
|
)
|
|
—
|
|
Deferred taxation
|
4.9
|
|
|
5.3
|
|
Taxation on other acquisition-related items
|
(0.3
|
)
|
|
(0.5
|
)
|
Taxation on changes in the fair value of contingent consideration
|
1.3
|
|
|
—
|
|
Adjustments to net income attributable to Invesco Ltd.
|
27.3
|
|
|
8.3
|
|
(5)
|
Market movement on deferred compensation plan liabilities
|
(6)
|
Other reconciling items
|
|
Three months ended March 31,
|
||||
$ in millions
|
2016
|
|
2015
|
||
Other non-GAAP adjustments:
|
|
|
|
||
Business optimization charges:
(a)
|
|
|
|
||
Employee compensation
|
4.0
|
|
|
—
|
|
Consulting and temporary labor
|
3.1
|
|
|
—
|
|
Property, office and technology
|
(0.3
|
)
|
|
—
|
|
Regulatory charge
(b)
|
6.0
|
|
|
—
|
|
Adjustments to operating income
|
12.8
|
|
|
—
|
|
Foreign exchange hedge (gain)/loss
(c)
|
(1.4
|
)
|
|
(3.1
|
)
|
Taxation:
|
|
|
|
||
Taxation on business optimization charges
(a)
|
(2.3
|
)
|
|
—
|
|
Taxation on regulatory-related charges
(b)
|
(2.3
|
)
|
|
—
|
|
Taxation on foreign exchange hedge amortization
(c)
|
0.2
|
|
|
—
|
|
Adjustments to net income attributable to Invesco Ltd.
|
7.0
|
|
|
(3.1
|
)
|
(a)
|
Business optimization: Operating expense for the
three months ended
March 31, 2016
include costs associated with a business transformation initiative that include severance costs of
$4.0 million
(
three months ended
March 31, 2015
:
zero
), consulting and temporary labor costs of
$3.1 million
(
three months ended
March 31, 2015
:
zero
) and a property related credit of
$0.3 million
(
three months ended
March 31, 2015
:
zero
) associated with vacating leased properties as part of a ongoing location strategy.
|
(b)
|
General and administrative expense for the
three months ended
March 31, 2016
include a provision of
$6.0 million
(
three months ended
March 31, 2015
:
zero
) pertaining to regulatory actions.
|
(c)
|
Included within other gains and losses, net is the mark-to-market of foreign exchange put option contracts intended to provide protection against the impact of a significant decline in the Pound Sterling/U.S. Dollar foreign exchange rate. These contracts provide coverage through March 31, 2017. 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.
|
|
|
March 31, 2016
|
|
December 31, 2015
|
|
March 31, 2015
|
||||||||||||
$ in millions
|
|
Impact of CIP
|
|
Consolidated Total
|
|
Impact of CIP
|
|
Consolidated Total
|
|
Impact of CIP
|
|
Consolidated Total
|
||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Cash and cash equivalents
|
|
—
|
|
|
1,454.5
|
|
|
—
|
|
|
1,851.4
|
|
|
—
|
|
|
1,219.7
|
|
Unsettled fund receivables
|
|
—
|
|
|
957.3
|
|
|
—
|
|
|
566.3
|
|
|
—
|
|
|
1,361.5
|
|
Accounts receivable
|
|
(2.7
|
)
|
|
513.9
|
|
|
(4.9
|
)
|
|
528.1
|
|
|
(4.1
|
)
|
|
561.1
|
|
Investments
|
|
(232.9
|
)
|
|
919.6
|
|
|
(68.5
|
)
|
|
1,019.1
|
|
|
(88.7
|
)
|
|
951.6
|
|
Assets of CSIP
|
|
—
|
|
|
—
|
|
|
—
|
|
|
319.1
|
|
|
—
|
|
|
314.2
|
|
Assets of CIP:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Cash and cash equivalents of CIP
|
|
167.8
|
|
|
167.8
|
|
|
363.3
|
|
|
363.3
|
|
|
393.9
|
|
|
393.9
|
|
Accounts receivable of CIP
|
|
139.6
|
|
|
139.6
|
|
|
173.5
|
|
|
173.5
|
|
|
82.1
|
|
|
82.1
|
|
Investments of CIP
|
|
3,639.4
|
|
|
3,639.4
|
|
|
6,016.1
|
|
|
6,016.1
|
|
|
6,198.0
|
|
|
6,198.0
|
|
Assets held for policyholders
|
|
—
|
|
|
6,578.3
|
|
|
—
|
|
|
6,051.5
|
|
|
—
|
|
|
2,572.7
|
|
Prepaid assets
|
|
—
|
|
|
127.3
|
|
|
—
|
|
|
121.2
|
|
|
—
|
|
|
126.5
|
|
Other assets
|
|
—
|
|
|
78.0
|
|
|
—
|
|
|
107.0
|
|
|
—
|
|
|
78.4
|
|
Property, equipment and software, net
|
|
—
|
|
|
428.9
|
|
|
—
|
|
|
426.9
|
|
|
—
|
|
|
393.1
|
|
Intangible assets, net
|
|
—
|
|
|
1,361.2
|
|
|
—
|
|
|
1,354.0
|
|
|
—
|
|
|
1,362.8
|
|
Goodwill
|
|
—
|
|
|
6,292.4
|
|
|
—
|
|
|
6,175.7
|
|
|
—
|
|
|
6,333.3
|
|
Total assets
|
|
3,711.2
|
|
|
22,658.2
|
|
|
6,479.5
|
|
|
25,073.2
|
|
|
6,581.2
|
|
|
21,948.9
|
|
LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Accrued compensation and benefits
|
|
—
|
|
|
331.0
|
|
|
—
|
|
|
661.3
|
|
|
—
|
|
|
371.7
|
|
Accounts payable and accrued expenses
|
|
—
|
|
|
754.9
|
|
|
—
|
|
|
863.1
|
|
|
—
|
|
|
824.5
|
|
Liabilities of CIP:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Debt of CIP
|
|
3,061.2
|
|
|
3,061.2
|
|
|
5,437.0
|
|
|
5,437.0
|
|
|
5,479.7
|
|
|
5,479.7
|
|
Other liabilities of CIP
|
|
181.5
|
|
|
181.5
|
|
|
273.7
|
|
|
273.7
|
|
|
320.7
|
|
|
320.7
|
|
Policyholder payables
|
|
—
|
|
|
6,578.3
|
|
|
—
|
|
|
6,051.5
|
|
|
—
|
|
|
2,572.7
|
|
Unsettled fund payables
|
|
—
|
|
|
933.9
|
|
|
—
|
|
|
561.9
|
|
|
—
|
|
|
1,363.2
|
|
Long-term debt
|
|
—
|
|
|
2,073.2
|
|
|
—
|
|
|
2,072.8
|
|
|
—
|
|
|
1,588.3
|
|
Deferred tax liabilities, net
|
|
—
|
|
|
374.4
|
|
|
—
|
|
|
288.9
|
|
|
—
|
|
|
387.7
|
|
Total liabilities
|
|
3,242.7
|
|
|
14,288.4
|
|
|
5,710.7
|
|
|
16,210.2
|
|
|
5,800.4
|
|
|
12,908.5
|
|
TEMPORARY EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Redeemable noncontrolling interests in consolidated entities
|
|
407.3
|
|
|
407.3
|
|
|
—
|
|
|
167.3
|
|
|
—
|
|
|
167.6
|
|
PERMANENT EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Equity attributable to Invesco Ltd.:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Common shares
|
|
—
|
|
|
98.1
|
|
|
—
|
|
|
98.1
|
|
|
—
|
|
|
98.1
|
|
Additional paid-in-capital
|
|
—
|
|
|
6,139.9
|
|
|
—
|
|
|
6,197.7
|
|
|
—
|
|
|
6,091.2
|
|
Treasury shares
|
|
—
|
|
|
(2,472.9
|
)
|
|
—
|
|
|
(2,404.1
|
)
|
|
—
|
|
|
(1,936.2
|
)
|
Retained earnings
|
|
(30.4
|
)
|
|
4,487.6
|
|
|
(20.1
|
)
|
|
4,439.6
|
|
|
12.1
|
|
|
4,077.5
|
|
Accumulated other comprehensive income/(loss), net of tax
|
|
34.0
|
|
|
(348.7
|
)
|
|
20.1
|
|
|
(446.0
|
)
|
|
(12.1
|
)
|
|
(253.6
|
)
|
Total equity attributable to Invesco Ltd.
|
|
3.6
|
|
|
7,904.0
|
|
|
—
|
|
|
7,885.3
|
|
|
—
|
|
|
8,077.0
|
|
Equity attributable to nonredeemable noncontrolling interests in consolidated entities
|
|
57.6
|
|
|
58.5
|
|
|
768.8
|
|
|
810.4
|
|
|
780.8
|
|
|
795.8
|
|
Total permanent equity
|
|
61.2
|
|
|
7,962.5
|
|
|
768.8
|
|
|
8,695.7
|
|
|
780.8
|
|
|
8,872.8
|
|
Total liabilities, temporary and permanent equity
|
|
3,711.2
|
|
|
22,658.2
|
|
|
6,479.5
|
|
|
25,073.2
|
|
|
6,581.2
|
|
|
21,948.9
|
|
|
Excluding CIP (Non-GAAP)
(1)
|
|
Including CIP (U.S. GAAP)
|
||||||||||||||
$ in millions
|
March 31, 2016
|
|
December 31, 2015
|
|
March 31, 2015
|
|
March 31, 2016
|
|
December 31, 2015
|
|
March 31, 2015
|
||||||
Cash and cash equivalents
|
1,454.5
|
|
|
1,851.4
|
|
|
1,219.7
|
|
|
1,454.5
|
|
|
1,851.4
|
|
|
1,219.7
|
|
Investments of CIP
|
—
|
|
|
—
|
|
|
—
|
|
|
3,639.4
|
|
|
6,016.1
|
|
|
6,198.0
|
|
Total assets
(1)
|
18,947.0
|
|
|
18,593.7
|
|
|
15,367.7
|
|
|
22,658.2
|
|
|
25,073.2
|
|
|
21,948.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Long-term debt
|
2,073.2
|
|
|
2,072.8
|
|
|
1,588.3
|
|
|
2,073.2
|
|
|
2,072.8
|
|
|
1,588.3
|
|
Long-term debt of CIP
|
—
|
|
|
—
|
|
|
—
|
|
|
3,061.2
|
|
|
5,437.0
|
|
|
5,479.7
|
|
Long-term debt / Long-term debt plus CIP debt
|
2,073.2
|
|
|
2,072.8
|
|
|
1,588.3
|
|
|
5,134.4
|
|
|
7,509.8
|
|
|
7,068.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total liabilities
(1)
|
11,045.7
|
|
|
10,499.5
|
|
|
7,108.1
|
|
|
14,288.4
|
|
|
16,210.2
|
|
|
12,908.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total permanent equity
(1)
|
7,901.3
|
|
|
7,926.9
|
|
|
8,092.0
|
|
|
7,962.5
|
|
|
8,695.7
|
|
|
8,872.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Debt/Equity %
(1,2)
|
26.2
|
%
|
|
26.1
|
%
|
|
19.6
|
%
|
|
64.5
|
%
|
|
86.4
|
%
|
|
79.7
|
%
|
(1)
|
The balance sheet line items excluding CIP are non-GAAP financial measures. To calculate total assets excluding CIP at
March 31, 2016
, use U.S. GAAP total assets of
$22,658.2 million
(
December 31, 2015
:
$25,073.2 million
;
March 31, 2015
:
$21,948.9 million
) and subtract total assets of CIP of
$3,711.2 million
(
December 31, 2015
:
$6,479.5 million
;
March 31, 2015
:
$6,581.2 million
). To calculate total liabilities excluding CIP at
March 31, 2016
, use U.S. GAAP total liabilities of
$14,288.4 million
(
December 31, 2015
:
$16,210.2 million
;
March 31, 2015
:
$12,908.5 million
) and subtract total liabilities of CIP of
$3,242.7 million
(
December 31, 2015
:
$5,710.7 million
,
March 31, 2015
:
$5,800.4 million
). To calculate total permanent equity excluding CIP at
March 31, 2016
, use U.S. GAAP total permanent equity of
$7,962.5 million
(
December 31, 2015
:
$8,695.7 million
;
March 31, 2015
:
$8,872.8 million
) and subtract total permanent equity of CIP of
$61.2 million
(
December 31, 2015
:
$768.8 million
;
March 31, 2015
:
$780.8 million
). See the "Balance Sheet Discussion" section for a fully expanded balance sheet illustrating the impact of CIP for
March 31, 2016
,
December 31, 2015
and
March 31, 2015
.
|
(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.
|
|
Three months ended March 31, 2016
|
|
Three months ended March 31, 2015
|
||||||||
$ in millions
|
Impact of CIP
|
|
Invesco Ltd. Consolidated
|
|
Impact of CIP
|
|
Invesco Ltd. Consolidated
|
||||
Operating activities:
|
|
|
|
|
|
|
|
||||
Net income
|
(11.6
|
)
|
|
157.8
|
|
|
12.2
|
|
|
284.0
|
|
Adjustments to reconcile net income to net cash provided by/(used in) operating activities:
|
|
|
|
|
|
|
|
||||
Amortization and depreciation
|
—
|
|
|
24.7
|
|
|
—
|
|
|
22.7
|
|
Share-based compensation expense
|
—
|
|
|
38.7
|
|
|
—
|
|
|
40.7
|
|
Other (gains)/losses, net
|
0.2
|
|
|
4.7
|
|
|
2.7
|
|
|
(2.7
|
)
|
Other (gains)/losses of CSIP, net
|
—
|
|
|
—
|
|
|
—
|
|
|
(6.4
|
)
|
Other (gains)/losses of CIP, net
|
24.6
|
|
|
24.6
|
|
|
(24.4
|
)
|
|
(24.4
|
)
|
Equity in earnings of unconsolidated affiliates
|
(3.5
|
)
|
|
12.2
|
|
|
1.7
|
|
|
(11.8
|
)
|
Dividends from unconsolidated affiliates
|
—
|
|
|
0.6
|
|
|
—
|
|
|
0.7
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|
||||
(Increase)/decrease in cash held by CIP
|
86.3
|
|
|
86.3
|
|
|
9.4
|
|
|
9.4
|
|
(Increase)/decrease in cash held by CSIP
|
—
|
|
|
—
|
|
|
—
|
|
|
(8.8
|
)
|
(Purchase)/sale of investments by CIP, net
|
(83.3
|
)
|
|
(83.3
|
)
|
|
—
|
|
|
—
|
|
(Purchase)/sale of trading investments, net
|
(0.5
|
)
|
|
15.2
|
|
|
—
|
|
|
(39.5
|
)
|
(Increase)/decrease in receivables
|
16.4
|
|
|
(993.5
|
)
|
|
(14.7
|
)
|
|
(1,632.9
|
)
|
Increase/(decrease) in payables
|
(18.8
|
)
|
|
643.2
|
|
|
3.8
|
|
|
1,312.7
|
|
Net cash provided by/(used in) operating activities
|
9.8
|
|
|
(68.8
|
)
|
|
(9.3
|
)
|
|
(56.3
|
)
|
Investing activities:
|
|
|
|
|
|
|
|
||||
Purchase of property, equipment and software
|
—
|
|
|
(26.0
|
)
|
|
—
|
|
|
(23.0
|
)
|
Purchase of available-for-sale investments
|
2.5
|
|
|
(0.2
|
)
|
|
27.1
|
|
|
(34.3
|
)
|
Sale of available-for-sale investments
|
(2.9
|
)
|
|
3.3
|
|
|
(29.7
|
)
|
|
9.8
|
|
Purchase of investments by CIP
|
(436.7
|
)
|
|
(436.7
|
)
|
|
(1,286.6
|
)
|
|
(1,286.6
|
)
|
Sale of investments by CIP
|
394.2
|
|
|
394.2
|
|
|
960.6
|
|
|
960.6
|
|
Purchase of investments by CSIP
|
—
|
|
|
—
|
|
|
—
|
|
|
(159.1
|
)
|
Sale of investments by CSIP
|
—
|
|
|
—
|
|
|
—
|
|
|
166.7
|
|
Purchase of other investments
|
0.9
|
|
|
(41.6
|
)
|
|
—
|
|
|
(51.9
|
)
|
Sale of other investments
|
—
|
|
|
22.4
|
|
|
—
|
|
|
36.6
|
|
Returns of capital and distributions from unconsolidated partnership investments
|
—
|
|
|
10.7
|
|
|
—
|
|
|
14.7
|
|
Purchase of business
|
—
|
|
|
(33.2
|
)
|
|
—
|
|
|
—
|
|
Net cash provided by/(used in) investing activities
|
(42.0
|
)
|
|
(107.1
|
)
|
|
(328.6
|
)
|
|
(366.5
|
)
|
Financing activities:
|
|
|
|
|
|
|
|
||||
Proceeds from exercises of share options
|
—
|
|
|
—
|
|
|
—
|
|
|
0.7
|
|
Purchases of treasury shares
|
—
|
|
|
(125.0
|
)
|
|
—
|
|
|
(76.6
|
)
|
Dividends paid
|
—
|
|
|
(113.0
|
)
|
|
—
|
|
|
(108.1
|
)
|
Excess tax benefits from share-based compensation
|
—
|
|
|
(3.9
|
)
|
|
—
|
|
|
13.0
|
|
Third-party capital invested into CIP
|
104.5
|
|
|
104.5
|
|
|
12.9
|
|
|
12.9
|
|
Third-party capital distributed by CIP
|
(25.5
|
)
|
|
(25.5
|
)
|
|
(33.9
|
)
|
|
(33.9
|
)
|
Third-party capital invested into CSIP
|
—
|
|
|
—
|
|
|
—
|
|
|
0.8
|
|
Borrowings of debt by CIP
|
—
|
|
|
—
|
|
|
935.9
|
|
|
935.9
|
|
Repayments of debt by CIP
|
(46.8
|
)
|
|
(46.8
|
)
|
|
(577.0
|
)
|
|
(577.0
|
)
|
Net borrowings/(repayments) under credit facility
|
—
|
|
|
—
|
|
|
—
|
|
|
11.2
|
|
Payment of contingent consideration
|
—
|
|
|
(3.2
|
)
|
|
—
|
|
|
—
|
|
Net cash provided by/(used in) financing activities
|
32.2
|
|
|
(212.9
|
)
|
|
337.9
|
|
|
178.9
|
|
Increase/(decrease) in cash and cash equivalents
|
—
|
|
|
(388.8
|
)
|
|
—
|
|
|
(243.9
|
)
|
Foreign exchange movement on cash and cash equivalents
|
—
|
|
|
(8.1
|
)
|
|
—
|
|
|
(50.6
|
)
|
Cash and cash equivalents, beginning of period
|
—
|
|
|
1,851.4
|
|
|
—
|
|
|
1,514.2
|
|
Cash and cash equivalents, end of period
|
—
|
|
|
1,454.5
|
|
|
—
|
|
|
1,219.7
|
|
$ in millions
|
March 31, 2016
|
|
December 31, 2015
|
||
Floating rate credit facility expiring August 7, 2020
|
—
|
|
|
—
|
|
Unsecured Senior Notes:
|
|
|
|
||
$600 million 3.125% - due November 30, 2022
|
596.1
|
|
|
596.1
|
|
$600 million 4.000% - due January 30, 2024
|
593.0
|
|
|
592.7
|
|
$500 million 3.750% - due January 15, 2026
|
494.2
|
|
|
494.2
|
|
$400 million 5.375% - due November 30, 2043
|
389.9
|
|
|
389.8
|
|
Long-term debt
|
2,073.2
|
|
|
2,072.8
|
|
$ millions
|
Total
|
|
Q1 2016
|
|
Q4 2015
|
|
Q3 2015
|
|
Q2 2015
|
||||||
Net income attributable to Invesco Ltd.
|
869.5
|
|
|
161.0
|
|
|
201.9
|
|
|
249.3
|
|
|
257.3
|
|
|
Impact of CIP on net income attributable to Invesco Ltd.
|
40.6
|
|
|
8.4
|
|
|
19.4
|
|
|
13.2
|
|
|
(0.4
|
)
|
|
Tax expense
|
368.6
|
|
|
71.9
|
|
|
86.9
|
|
|
100.4
|
|
|
109.4
|
|
|
Amortization/depreciation/impairment
|
95.6
|
|
|
24.7
|
|
|
25.0
|
|
|
22.6
|
|
|
23.3
|
|
|
Interest expense
|
86.9
|
|
|
23.9
|
|
|
23.0
|
|
|
20.4
|
|
|
19.6
|
|
|
Share-based compensation expense
|
148.3
|
|
|
38.7
|
|
|
37.4
|
|
|
36.2
|
|
|
36.0
|
|
|
Unrealized gains and losses from investments, net
*
|
7.5
|
|
|
16.4
|
|
|
(2.4
|
)
|
|
(8.8
|
)
|
|
2.3
|
|
|
EBITDA
**
|
1,617.0
|
|
|
345.0
|
|
|
391.2
|
|
|
433.3
|
|
|
447.5
|
|
|
Adjusted debt
**
|
|
$2,093.7
|
|
|
|
|
|
|
|
|
|
||||
Leverage ratio (Debt/EBITDA - maximum 3.25:1.00)
|
1.29
|
|
|
|
|
|
|
|
|
|
|||||
Interest coverage (EBITDA/Interest Expense - minimum 4.00:1.00)
|
18.61
|
|
|
|
|
|
|
|
|
|
*
|
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
$2,073.2 million
plus
$20.5 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.
|
•
|
In the event of extreme circumstances, including economic, political, or business crises, such as a widespread systemic failure or disruptions in the global financial system or failures of firms that have significant obligations as counterparties on financial instruments, we may suffer significant declines in AUM and severe liquidity or valuation problems in managed investment products in which client and company assets are invested, all of which would adversely affect our operating results, financial condition, liquidity, credit ratings, ability to access capital markets, and retention and ability to attract key employees. Additionally, these factors could impact our ability to realize the carrying value of our goodwill and other intangible assets.
|
•
|
In addition to the impact of the market volatility on client portfolios, illiquidity and/or volatility of the global fixed income and/or equity markets could negatively affect our ability to manage client inflows and outflows or to timely meet client redemption requests.
|
•
|
Our money market funds have always maintained a net asset value (NAV) of $1.00 per share; however, we do not guarantee such level. Market conditions could lead to severe liquidity issues in money market products, which could affect their NAVs.
|
•
|
If the NAV of one of our money market funds were to decline below $1.00 per share, such funds could experience significant redemptions in AUM, loss of shareholder confidence and reputational harm. In the U.S., regulations requiring a variable (“floating”) NAV for institutional money market funds will become effective in 2016.
|
•
|
Even if central bank, legislative or regulatory initiatives or other efforts continue to stabilize the financial markets, we may need to modify our strategies, businesses or operations, and we may incur increased capital requirements and constraints or additional costs in order to satisfy new regulatory requirements or to compete in a changed business environment.
|
•
|
More broadly, uncertainties regarding geopolitical developments can produce volatility in global financial markets. In this regard, the U.K. electorate will vote on June 23, 2016 whether to exit the European Union (“Brexit”). A vote to exit could produce market declines that could impact our AUM. In addition, because the U.K. Pound Sterling is the functional currency for certain of our subsidiaries, any weakening of the U.K. Pound Sterling relative to the U.S. dollar related to a Brexit could negatively impact our reported financial results.
|
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) |
||||||
January 1-31, 2016
|
1,129,128
|
|
|
$
|
33.50
|
|
|
1,118,159
|
|
|
|
$640.5
|
|
February 1-29, 2016
|
3,363,735
|
|
|
$
|
26.81
|
|
|
2,112,798
|
|
|
|
$584.3
|
|
March 1-31, 2016
|
1,169,695
|
|
|
$
|
28.02
|
|
|
1,119,995
|
|
|
|
$553.0
|
|
Total
|
5,662,558
|
|
|
|
|
4,350,952
|
|
|
|
(1)
|
An aggregate of
1,311,606
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
March 31, 2016
,
$553.0 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
|
Amendment to Letter of Assignment between Mark Armour and Invesco Perpetual, dated April 14, 2016
|
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.
|
April 28, 2016
|
/s/ MARTIN L. FLANAGAN
|
|
Martin L. Flanagan
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President and Chief Executive Officer
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April 28, 2016
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/s/ LOREN M. STARR
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Loren M. Starr
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Senior Managing Director and Chief Financial Officer
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Re:
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Amendment (“Amendment”) to Letter of Assignment - Secondment to Invesco Perpetual, dated 12 March 2013 (“Letter of Assignment – Secondment”)
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1.
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The third sentence of the Letter of Assignment – Secondment is hereby deleted and replaced with the following:
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2.
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The sixth sentence of the Letter of Assignment – Secondment is hereby deleted and replaced with the following:
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1.
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I have reviewed this Quarterly Report on Form 10-Q of Invesco Ltd.;
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2.
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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;
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3.
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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;
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4.
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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:
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a)
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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;
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b)
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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;
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c)
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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
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d)
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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
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5.
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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):
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a)
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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
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b)
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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.
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April 28, 2016
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/s/ MARTIN L. FLANAGAN
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Martin L. Flanagan
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President and Chief Executive Officer
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1.
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I have reviewed this Quarterly Report on Form 10-Q of Invesco Ltd.;
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2.
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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;
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3.
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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;
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4.
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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:
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a)
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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;
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b)
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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;
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c)
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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
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d)
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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
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5.
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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):
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a)
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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
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b)
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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.
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April 28, 2016
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/s/ LOREN M. STARR
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Loren M. Starr
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Senior Managing Director and Chief Financial Officer
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1.
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the Report fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934; and
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2.
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the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
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April 28, 2016
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/s/ MARTIN L. FLANAGAN
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Martin L. Flanagan
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President and Chief Executive Officer
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1.
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the Report fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934; and
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2.
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the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
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April 28, 2016
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/s/ LOREN M. STARR
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Loren M. Starr
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Senior Managing Director and Chief Financial Officer
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