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ANNUAL 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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Title of Each Class
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Name of Exchange on Which Registered
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Common Shares, $0.20 par value per share
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New York Stock Exchange
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Large accelerated filer
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Accelerated filer
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Non-accelerated filer
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(Do not check if a smaller reporting company)
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Smaller reporting company
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Page
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significant fluctuations in the performance of capital and credit markets worldwide;
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adverse changes in the global economy;
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any inability to adjust our expenses quickly enough to match significant deterioration in markets;
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significant changes in net asset flows into or out of the accounts we manage or declines in market value of the assets in, or redemptions or other withdrawals from, those accounts;
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variations in demand for our investment products or services, including termination or non-renewal of our investment management agreements;
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the effect of fluctuations in interest rates, liquidity and credit markets in the U.S. or globally;
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the investment performance of our investment products;
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the effect of non-performance by our counterparties
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adverse changes in laws or regulations, adverse results in litigation and any other regulatory or other proceedings, governmental investigations, and enforcement actions;
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the effect of political, economic or social instability in or involving countries in which we invest or do business (including the effect of terrorist attacks, war and other hostilities);
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our ability to attract and retain key personnel, including investment management professionals;
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harm to our reputation;
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our ability to comply with client contractual requirements and/or investment guidelines despite preventative compliance procedures and controls;
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competitive pressures in the investment management business which may force us to reduce fees we earn;
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the effect of consolidation in the investment management business;
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our ability to develop, introduce and support new investment products and services;
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our ability to acquire and integrate other companies into our operations successfully and the extent to which we can realize anticipated product sales, cost savings or synergies from such acquisitions;
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our ability to implement our ongoing company-wide transformational initiatives;
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our ability to access the capital markets in a timely manner;
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our debt and the limitations imposed by our credit facility;
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limitations or restrictions on access to distribution channels for our products;
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the occurrence of breaches and errors in the conduct of our business, including any failure to properly safeguard confidential and sensitive information, cyber-attacks or acts of fraud;
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the effect of failures or delays in support systems or customer service functions, and other interruptions of our operations;
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the effect of failures by third party service providers and other key vendors to fulfill their obligations;
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exchange rate fluctuations, especially as against the U.S. Dollar;
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impairment of goodwill and other intangible assets; and
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enactment of adverse federal, state or foreign legislation or changes in government policy or regulation (including accounting standards) affecting our operations, our capital requirements or the way in which our profits are taxed.
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Achieve strong, long-term investment performance
across distinct investment capabilities with clearly articulated investment philosophies and processes, aligned with client needs;
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Be instrumental to our clients' success
by delivering our distinctive investment capabilities worldwide to meet their needs;
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Harness the power of our global platform
by continuously improving execution effectiveness to enhance quality and productivity, and allocating our resources to the opportunities that will best benefit clients and our business; and
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Perpetuate a high-performance organization
by driving greater transparency, accountability, fact-based decision making and execution at all levels.
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▪
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Delivered strong, long-term investment performance across our global franchise, with 72% and 75% of measured actively managed ranked assets in the top half of peer groups* on a three- and five-year basis, respectively, as of December 31, 2016;
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Launched an income version of the popular multi-asset Global Targeted Returns fund in response to rising investor demand for sustainable income strategies. The income version targets a gross income of 3.5 per cent a year above three-month Libor while aiming to preserve capital in all market conditions over a rolling three-year period, keeping volatility below half that of global equities over this period;
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Continued to enhance our fixed income product suite, further strengthening our investment platform, developing our talent and enhancing our reputation in the marketplace;
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Invested in our institutional business by refining our global strategy, strengthening the highly regarded team with experienced talent and more effectively aligning ourselves to opportunities in the market. We are seeing early successes from this work, with strong institutional flows during the second and third quarters, continuing a series of positive institutional flows that stretches back more than two years.
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Driven by strong client demand and a compelling suite of capabilities, our PowerShares ETFs achieved a record year in 2016, with $9.3 billion in net new assets during the year. The strong flows continued to help PowerShares gain share in the ETF market;
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Continued to expand our Invesco Solutions team, which brings together the full capabilities of the firm to provide outcomes that help clients meet their investment objectives. One result of this strategy was winning the Rhode Island 529 mandate of $6.5 billion, which funded in July 2016;
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Completed the acquisition of Jemstep, a market-leading provider of advisor-focused digital solutions. Jemstep provides wealth management home offices and their advisors with a full suite of technology solutions that are highly flexible, customizable and easily integrated into existing systems. The solution was launched in the U.S. to offer advisors a white-labeled, open architecture platform that includes certain of Invesco’s high-conviction fundamental and factor-based investment strategies. The acquisition represents an investment in our partnership with the advice community and highlights our efforts to participate in evolving technologies within our industry; and
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Further expanded our presence in the attractive Indian market by completing the acquisition of the remaining 51% ownership stake in Invesco Asset Management (India) Private Limited.
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*
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As of
December 31, 2016
, 72% and 75% of ranked assets were performing top half of peer groups on a 3 and 5-year basis. See Item 7, “Management's Discussion and Analysis of Financial Condition and Results of Operations - Investment Capabilities Performance Overview,” for more discussion of AUM rankings by investment capability, including additional data regarding the proportion of ranked AUM to total AUM.
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Clients are demanding more from investment managers. While investment performance remains paramount, client engagement and value-added services (including portfolio analytics and providing consultative solutions) increasingly differentiate managers. Invesco is working to enhance the client's user experience through digital marketing (web, mobile, social) and improved service.
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Due to divergent central bank monetary policies between the U.S Federal Reserve and the central banks of other developed economies , investors are seeking outcome-orientated investment solutions that provide income and manage volatility. The building out of Invesco Solutions to respond to this trend is among the firm's top priorities.
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Investors are continuing to shift to alternative, passive, and smart beta strategies. As a consequence, core equities and fixed income portfolios are declining as a share of global AUM. Our PowerShares ETFs remain a leader in smart beta ETFs and Invesco has a strong lineup of alternative and multi-asset strategies supported by ongoing product development.
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Distribution partners are becoming more selective and are moving towards developing fewer relationships and partners, reducing the number of investment managers they work with, especially in the U.S. driven by the rules adopted by the Department of Labor.
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Regulatory activity remains at increased levels since the 2008 - 2009 financial crisis and is influencing competitive dynamics. Increased regulatory scrutiny of managers has focused on many areas including transparency/unbundling of fees, inducements, conflicts of interest, capital, liquidity, solvency, leverage, operational risk management, controls and compensation. Invesco continued to pro-actively work with regulators around the world. Efforts to further modernize and strengthen our global platform will enhance our ability to compete effectively across markets while complying with the variety of applicable regulatory regimes.
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Although the developed markets in the U.S. and Europe are currently the two largest markets for financial assets by a wide margin, other key emerging markets in the world, such as China and India, are positioned for future growth despite near-term headwinds. As these population-heavy markets mature, we believe investment managers that are truly global will be in the best position to capture this growth. Additionally, population age differences between emerging and developed markets will result in differing investment needs and horizons among countries. Asset allocation and retirement savings schemes also differ substantially among countries. We believe firms such as Invesco, with diversified investment capabilities and product types, are best positioned to meet clients' needs in this global competitive landscape. Invesco has a meaningful market presence in many of the world's most attractive regions, including the North America, EMEA and Asia-Pacific. We believe our strong and growing presence in established and emerging markets provides significant long-term growth potential for our business.
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Technology advances are impacting core elements of the investment management industry which lags other industries in its use of technology. Clients increasingly seek to interact digitally with their investment portfolios. This is leading to established managers investing in and/or acquiring "robo" platforms. As the investment management business becomes more complex, automation will become increasingly important to serve clients effectively and efficiently. Invesco is leveraging technology in all aspects of its business and exploring opportunities to work with third-party technology firms to enhance our clients' investment experience.
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Money Market
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Balanced
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Equity
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Fixed Income
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Alternatives
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●Cash Plus
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●Balanced Risk
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●Emerging Markets
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●Convertibles
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●Absolute Return
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●Government/Treasury
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●Global
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●International/Global
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●Core/Core Plus
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●Commodities
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●Prime
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● Single Country
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●Large Cap Core
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●Emerging Markets
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●Currencies
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●Taxable
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●Target Date
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●Large Cap Growth
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●Enhanced Cash
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●Financial Structures
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●Tax-Free
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●Target Risk
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●Large Cap Value
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●Government Bonds
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●Global Macro
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●Custom Solutions
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●Traditional Balanced
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●Low Volatility
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●High-Yield Bonds
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●Long/Short Equity
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●Custom Solutions
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●Mid Cap Core
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●Intermediate Term
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●Managed Futures
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●Mid Cap Growth
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●International/Global
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●Multi-Alternatives
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●Mid Cap Value
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●Investment Grade Credit
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●Private Capital - Direct
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●Regional/Single Country
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●Multi-Sector
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●Private Capital - Fund of Funds
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●Sector Funds
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●Municipal Bonds
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●Private Direct Real Estate
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●Small Cap Core
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●Passive/Enhanced
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●Public Real Estate Securities
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●Small Cap Growth
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●Short Duration
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●Senior Secured Loans
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●Small Cap Value
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●Stable Value
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●Custom Solutions
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●Environmental, Social and Governance
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●Structured Securities
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●Smart Beta
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●Environmental, Social and Governance
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●Custom Solutions
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●Smart Beta
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●Custom Solutions
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Retail
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Institutional
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● Closed-end Mutual Funds
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● Collective Trust Funds
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● Exchange-traded Funds (ETF)
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● Exchange-traded Funds (ETF)
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● Individual Savings Accounts
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● Institutional Separate Accounts
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● Investment Companies with Variable Capital (ICVC)
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● Open-end Mutual Funds
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● Société d'investissement à Capital Variable (SICAV)
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● Private Capital Funds
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● Investment Trusts
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● Open-end Mutual Funds
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● Separately Managed Accounts (SMA)
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● Unit Investment Trusts (UIT)
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● Variable Insurance Funds
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By Client Domicile
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($ in billions)
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Total
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1-Yr Change
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c
U.S.
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539.5
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5.6
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%
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Canada
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23.1
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6.5
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%
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c
U.K.
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98.2
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(5.8
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)%
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c
Continental Europe
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72.1
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(4.4
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)%
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c
Asia
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80.0
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25.8
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%
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Total
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812.9
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By Asset Class
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($ in billions)
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Total
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1-Yr Change
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c
Equity
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364.1
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(1.8
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)%
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c
Fixed Income
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201.7
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7.3
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%
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c
Balanced
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46.8
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(2.7
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)%
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c
Money Market
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78.3
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21.2
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%
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c
Alternatives
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122.0
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17.2
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%
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Total
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812.9
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Investment risk oversight is supported by the Global Performance Measurement and Risk group, which provides senior management and the Board with insight into core investment risks.
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Business and operational risk oversight is supported by the Corporate Risk Management Committee, which facilitates a focus on strategic, operational and other key business risks, appropriate management and Board oversight.
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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 ability to retain and attract key employees. Additionally, these factors could impact our ability to realize the carrying value of our goodwill and other intangible assets.
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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.
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In the U.S., regulations requiring a variable (“floating”) net asset value (NAV) for institutional prime and tax-free money market funds became effective in October 2016. Those same regulations also provide for the potential imposition of the assessment of fees in connection with redemptions and/or gates that postpone the time in which redemptions must be processed in the event those funds’ weekly liquid assets fall below certain specified thresholds. Our government money market funds and retail prime and tax-free money market funds continue to offer a stable NAV of $1.00 per share and are not required to impose fees and gates; however, we do not guarantee such NAV level. Market conditions could lead to severe liquidity issues in money market products, which could lead to the imposition of fees or gates with respect to institutional prime and tax-free money market funds and an affect on the NAVs of government and retail prime and tax-free money market funds. If our institutional prime or tax-free money market funds were to impose redemption fees or gates delaying the payment of redemption proceeds, or the NAV of one of our government or retail prime or tax-free 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.
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Even as 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.
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More broadly, uncertainties regarding geopolitical developments can produce volatility in global financial markets. As an example, the U.K. electorate voted on June 23, 2016 to exit the European Union (Brexit). The vote to exit resulted in market volatility that may continue during the Brexit negotiation process. This may impact the levels and composition of our AUM and also negatively impact investor sentiment, which could result in reduced or negative flows. 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 could negatively impact our reported financial results.
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Expanded regulation over investment management firms.
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New or increased capital requirements and related regulation.
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Change to the regulation of money market funds in the EU requiring capital buffers.
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Limitations on holdings of certain commodities under proposed regulations of the CFTC which could result in capacity constraints for our products that employ commodities as part of their investment strategy.
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The U.S. Department of Labor adopted regulations in April 2016 that treat as fiduciaries any person who provides investment advice or recommendations to employee benefit plans, plan fiduciaries, plan participants, plan beneficiaries, Individual Retirement Accounts (IRAs) or IRA owners. The regulations have wide-ranging consequences for Invesco and our U.S. distribution partners and product line. Under the new rules, firms and individuals who recommend financial products to retirement investors would be required to act in the best interest of the investor and, to receive variable compensation, would be required to enter into a contract with clients and produce complex disclosure documents intended to highlight financial conflicts of interest that may arise from the compensation the financial adviser receives from firms like Invesco. These rules are scheduled to begin to be implemented in April 2017, with full implementation by January 2018.
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Other changes to the distribution of investment funds and other investment products. In the U.S., the SEC previously has proposed and may repropose significant changes to Rule 12b-1, and may propose other regulatory changes impacting distribution of investment funds. Invesco believes these proposals could increase operational and compliance costs. The EU has implemented the Alternative Investment Fund Manager Directive (AIFMD); implementing legislation in member states has, among other elements, imposed restrictions on the marketing and sale within the EU of private equity and other alternative investment funds sponsored by non-EU managers. Various regulators promulgated or are considering other new disclosure or suitability requirements pertaining to the distribution of investment funds and other investment products, including enhanced standards and requirements pertaining to disclosures made to retail investors at the point of sale.
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In 2015, the FCA undertook a study of the asset management industry and released their interim report at the end of November 2016. It highlighted a number of specific industry issues and proposed a number of potential remedies, including: proposed changes to governance, changes to fee structures to provide clients with increased transparency, improved disclosure in client documentation, improved ability for retail clients to change share classes and changes to
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The Markets in Financial Instruments Directive II (MiFID II) in the EU seeks to promote a single market for wholesale and retail transactions in financial instruments. MiFID II addresses the conduct of business rules for intermediaries providing investment services and the effective, efficient and safe operation of financial markets. Key elements of MiFID II are the extent to which retrocessions may be paid and the use of trading commissions to fund research.
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An increased focus on liquidity in fixed income funds.
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Increased regulatory scrutiny on operations of private equity funds.
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Guidelines regarding the structure and components of fund manager compensation.
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Requirements pertaining to the trading of securities and other financial instruments, such as swaps and other derivatives, including certain provisions of the Dodd-Frank Act and European Market Infrastructure Regulation; these include significant reporting requirements, designated trading venues, mandated central clearing arrangements, restrictions on proprietary trading by certain financial institutions, other conduct requirements and potentially new taxes or similar fees.
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Heightened regulatory examinations and inspections, including enforcement reviews, and a more aggressive posture regarding commencing enforcement proceedings resulting in fines, penalties and additional remedial activities to firms and to individuals. Without limiting the generality of the foregoing, regulators in the United States and the United Kingdom have taken and can be expected to continue to take a more aggressive posture on bringing enforcement proceedings.
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Enhanced licensing and qualification requirements for key personnel.
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Other additional rules and regulations and disclosure requirements. Certain provisions impose additional disclosure burdens on public companies. Certain proposals could impose requirements for more widespread disclosures of compensation to highly-paid individuals. Depending upon the scope of any such requirements, Invesco could be disadvantaged in retaining key employees vis-à-vis private companies, including hedge fund sponsors.
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Strengthening standards regarding various ethical matters, including compliance with the Foreign Corrupt Practices Act, the U.K. Bribery Act and anti-money-laundering laws and regulations.
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Regulations promulgated to address perceptions that the asset management industry, or certain of its entities or activities, pose systematic risks to the financial system.
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Regulations promulgated to protect personal data and address risks of fraud, malfeasance or other adverse consequences stemming from cyber attacks.
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Regulations pertaining to the privacy of data with respect to clients, employees and business partners.
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Other changes impacting the identity or the organizational structure of regulators with supervisory authority over Invesco.
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we are prohibited from engaging, under certain circumstances, in a business combination (as defined in our Bye-Laws) with any interested shareholder (as defined in our Bye-Laws) for three years following the date that the shareholder became an interested shareholder;
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our Board of Directors, without further shareholder action, is permitted by our Bye-Laws to issue preference shares, in one or more series, and determine by resolution any designations, preferences, qualifications, privileges, limitations, restrictions, or special or relative rights of an additional series. The rights of preferred shareholders may supersede the rights of common shareholders;
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shareholders may only remove directors for “cause” (defined in our Bye-laws to mean willful misconduct or gross negligence which is materially injurious to the company, fraud or embezzlement, or a conviction of, or a plea of “guilty” or “no contest” to, a felony);
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our Board of Directors is authorized to expand its size and fill vacancies; and
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shareholders cannot act by written consent unless the consent is unanimous.
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Invesco Ltd.
Common Shares
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High
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Low
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Dividends Declared*
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2016
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Fourth Quarter
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$33.34
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$27.46
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$0.2800
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Third Quarter
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$31.76
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$24.34
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$0.2800
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Second Quarter
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$32.85
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$23.02
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$0.2800
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First Quarter
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$33.54
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$24.90
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$0.2700
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2015
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Fourth Quarter
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$34.35
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$30.39
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$0.2700
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Third Quarter
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$38.99
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$30.82
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$0.2700
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Second Quarter
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$41.73
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$37.40
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$0.2700
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First Quarter
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$41.85
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$35.93
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$0.2500
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*
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Dividends declared represent dividends declared and paid during the quarter, but which are attributable to the prior quarter. Invesco declares and pays dividends on a quarterly basis in arrears.
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Note:
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Prior Asset Manager Index includes Affiliated Managers Group, Alliance Bernstein, Ameriprise Financial, Bank of New York Mellon, BlackRock, Eaton Vance, Federated Investors, Franklin Resources, Invesco Ltd., Janus Capital Group, Legg Mason, Northern Trust, SEI Investment Company, State Street, T. Rowe Price and Waddell & Reed.
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Month
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Total Number
of Shares
Purchased
(1)
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Average Price Paid Per Share
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Total Number of Shares
Purchased as Part of Publicly Announced Plans or Programs (2) |
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Approximate Dollar
Value of Shares that
May Yet Be Purchased Under the Plans or Programs (2) (millions) |
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October 1 - 31, 2016
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5,092
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$29.95
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—
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$1,793.0
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November 1 - 30, 2016
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4,330,892
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$31.44
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4,307,251
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$1,657.6
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December 1 - 31, 2016
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546,218
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$31.47
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464,624
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$1,643.0
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4,882,202
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4,771,875
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(1)
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An aggregate of
110,327
shares were surrendered to us by Invesco employees to satisfy tax withholding obligations in connection with the vesting of equity awards during the three months ended
December 31, 2016
.
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(2)
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At
December 31, 2016
, a balance of
$1,643.0 million
remains available under the share repurchase authorizations approved by the Board on October 11, 2013 and July 22, 2016.
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As of and For The Years Ended December 31,
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$ in millions, except per share and other data
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2016
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2015
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2014
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2013
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2012
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Operating Data
(1)
:
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|||||
Operating revenues
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4,734.4
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5,122.9
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5,147.1
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4,644.6
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4,050.4
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Net revenues
(2)
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3,393.2
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3,643.2
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3,608.3
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3,252.0
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2,836.0
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Operating income
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1,176.4
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1,358.4
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1,276.9
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1,120.2
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842.6
|
|
Adjusted operating income
(3)
|
1,312.8
|
|
|
1,493.7
|
|
|
1,495.0
|
|
|
1,292.1
|
|
|
1,012.1
|
|
Operating margin
|
24.8
|
%
|
|
26.5
|
%
|
|
24.8
|
%
|
|
24.1
|
%
|
|
20.8
|
%
|
Adjusted operating margin
(3)
|
38.7
|
%
|
|
41.0
|
%
|
|
41.4
|
%
|
|
39.7
|
%
|
|
35.7
|
%
|
Net income attributable to Invesco Ltd.
|
854.2
|
|
|
968.1
|
|
|
988.1
|
|
|
940.3
|
|
|
677.1
|
|
Adjusted net income attributable to Invesco Ltd.
(4)
|
924.1
|
|
|
1,048.7
|
|
|
1,094.8
|
|
|
953.3
|
|
|
748.6
|
|
Per Share Data:
|
|
|
|
|
|
|
|
|
|
|||||
Earnings per share:
|
|
|
|
|
|
|
|
|
|
|||||
-basic
|
2.06
|
|
|
2.26
|
|
|
2.27
|
|
|
2.10
|
|
|
1.50
|
|
-diluted
|
2.06
|
|
|
2.26
|
|
|
2.27
|
|
|
2.10
|
|
|
1.49
|
|
Adjusted diluted EPS
(1,4)
|
2.23
|
|
|
2.44
|
|
|
2.51
|
|
|
2.13
|
|
|
1.65
|
|
Dividends declared per share
|
1.1100
|
|
|
1.0600
|
|
|
0.9750
|
|
|
0.8475
|
|
|
0.6400
|
|
Balance Sheet Data:
|
|
|
|
|
|
|
|
|
|
|||||
Total assets
|
25,734.3
|
|
|
25,073.2
|
|
|
20,450.0
|
|
|
19,256.8
|
|
|
17,487.2
|
|
Long-term debt
|
2,102.4
|
|
|
2,072.8
|
|
|
1,576.8
|
|
|
1,574.9
|
|
|
1,180.8
|
|
Debt of consolidated investment products (CIP)
|
4,403.1
|
|
|
5,437.0
|
|
|
5,149.6
|
|
|
4,181.7
|
|
|
3,899.4
|
|
Total equity attributable to Invesco Ltd.
|
7,503.8
|
|
|
7,885.3
|
|
|
8,326.0
|
|
|
8,392.6
|
|
|
8,316.8
|
|
Total permanent equity
|
7,611.8
|
|
|
8,695.7
|
|
|
9,119.8
|
|
|
8,977.3
|
|
|
9,049.0
|
|
Other Data
(1)
:
|
|
|
|
|
|
|
|
|
|
|||||
Ending AUM (in billions)
|
812.9
|
|
|
775.6
|
|
|
792.4
|
|
|
778.7
|
|
|
667.4
|
|
Average AUM (in billions)
|
788.8
|
|
|
794.7
|
|
|
790.3
|
|
|
725.6
|
|
|
645.3
|
|
Headcount
|
6,790
|
|
|
6,490
|
|
|
6,264
|
|
|
5,932
|
|
|
5,889
|
|
(1)
|
The company completed the sale of Atlantic Trust on December 31, 2013. The results of Atlantic Trust have been reflected as discontinued operations. Amounts presented represent continuing operations and exclude Atlantic Trust, with the exception of net income attributable to Invesco Ltd., basic earnings per share and diluted earnings per share. Prior period amounts have been reclassified to conform with this presentation.
|
(2)
|
Net revenues is a non-GAAP financial measure. See Item 7, “Summary Operating Information,” footnote
2
, for the definition of this measure and the related reconciliation reference.
|
(3)
|
Adjusted operating income and adjusted operating margin are non-GAAP financial measures. See Item 7, “Summary Operating Information,” footnote
3
, for the definition of these measures and the related reconciliation reference.
|
(4)
|
Adjusted net income attributable to Invesco Ltd. and adjusted diluted EPS are non-GAAP financial measures. See Item 7, “Summary Operating Information,” footnote
4
, for the definition of these measures and the related reconciliation reference.
|
•
|
Results of Operations (years ended
December 31, 2016
compared to
December 31, 2015
compared to
December 31, 2014
);
|
•
|
Schedule of Non-GAAP Information;
|
•
|
Balance Sheet Discussion; and
|
•
|
Liquidity and Capital Resources.
|
$ in millions, other than per share amounts, operating margins, ratios and AUM
|
Year ended December 31,
|
|||||||
U.S. GAAP Financial Measures Summary
(1)
|
2016
|
|
2015
|
|
2014
|
|||
Operating revenues
|
4,734.4
|
|
|
5,122.9
|
|
|
5,147.1
|
|
Operating income
|
1,176.4
|
|
|
1,358.4
|
|
|
1,276.9
|
|
Operating margin
|
24.8
|
%
|
|
26.5
|
%
|
|
24.8
|
%
|
Net income attributable to Invesco Ltd.
|
854.2
|
|
|
968.1
|
|
|
988.1
|
|
Diluted EPS
|
2.06
|
|
|
2.26
|
|
|
2.27
|
|
|
|
|
|
|
|
|||
Non-GAAP Financial Measures Summary
|
|
|
|
|
|
|||
Net revenues
(2)
|
3,393.2
|
|
|
3,643.2
|
|
|
3,608.3
|
|
Adjusted operating income
(3)
|
1,312.8
|
|
|
1,493.7
|
|
|
1,495.0
|
|
Adjusted operating margin
(3)
|
38.7
|
%
|
|
41.0
|
%
|
|
41.4
|
%
|
Adjusted net income attributable to Invesco Ltd.
(4)
|
924.1
|
|
|
1,048.7
|
|
|
1,094.8
|
|
Adjusted diluted EPS
(4)
|
2.23
|
|
|
2.44
|
|
|
2.51
|
|
|
|
|
|
|
|
|||
Assets Under Management
(1)
|
|
|
|
|
|
|||
Ending AUM (billions)
|
812.9
|
|
|
775.6
|
|
|
792.4
|
|
Average AUM (billions)
|
788.8
|
|
|
794.7
|
|
|
790.3
|
|
(1)
|
On December 31, 2013, the company completed the sale of Atlantic Trust. The company has adopted a discontinued operations presentation for Atlantic Trust. Amounts for the year ended December 31, 2014 represent continuing operations and exclude Atlantic Trust, with the exception of net income attributable to Invesco Ltd. and diluted earnings per share.
|
(2)
|
Net revenues is a non-GAAP financial measure. Net revenues are operating revenues plus our proportional share of the net revenues of our joint venture investments, less third-party distribution, service and advisory expenses, plus management and performance fees earned from CIP, less other revenue recorded by CIP, plus other reconciling items. See "Schedule of Non-GAAP Information" for the reconciliation of operating revenues to net revenues.
|
(3)
|
Adjusted operating income and adjusted operating margin are non-GAAP financial measures. Adjusted operating margin is adjusted operating income divided by net revenues. Adjusted operating income includes operating income plus our proportional share of the net operating income of our joint venture investments, the operating income impact of the consolidation of investment products, acquisition/disposition related adjustments, compensation expense related to market valuation changes in deferred compensation plans, and other reconciling items. See "Schedule of Non-GAAP Information," for the reconciliation of operating income to adjusted operating income.
|
(4)
|
Adjusted net income attributable to Invesco Ltd. and adjusted diluted EPS are non-GAAP financial measures. Adjusted net income attributable to Invesco Ltd. is net income attributable to Invesco Ltd. adjusted to exclude the net income of CIP, 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..
|
|
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
|
12
|
%
|
0
|
%
|
0
|
%
|
|
45
|
%
|
5
|
%
|
4
|
%
|
U.S. Growth
|
30
|
%
|
30
|
%
|
38
|
%
|
|
74
|
%
|
38
|
%
|
38
|
%
|
U.S. Value
|
49
|
%
|
55
|
%
|
89
|
%
|
|
62
|
%
|
56
|
%
|
85
|
%
|
Sector Funds
|
12
|
%
|
5
|
%
|
54
|
%
|
|
18
|
%
|
14
|
%
|
15
|
%
|
U.K.
|
5
|
%
|
93
|
%
|
100
|
%
|
|
12
|
%
|
98
|
%
|
73
|
%
|
Canadian
|
65
|
%
|
32
|
%
|
61
|
%
|
|
16
|
%
|
9
|
%
|
50
|
%
|
Asian
|
78
|
%
|
78
|
%
|
95
|
%
|
|
76
|
%
|
64
|
%
|
80
|
%
|
Continental European
|
60
|
%
|
99
|
%
|
100
|
%
|
|
50
|
%
|
75
|
%
|
95
|
%
|
Global
|
57
|
%
|
48
|
%
|
73
|
%
|
|
79
|
%
|
69
|
%
|
91
|
%
|
Global Ex U.S. and Emerging Markets
|
84
|
%
|
98
|
%
|
98
|
%
|
|
13
|
%
|
99
|
%
|
20
|
%
|
Fixed Income
|
|
|
|
|
|
|
|
||||||
Money Market
|
99
|
%
|
68
|
%
|
68
|
%
|
|
97
|
%
|
97
|
%
|
98
|
%
|
U.S. Fixed Income
|
73
|
%
|
90
|
%
|
95
|
%
|
|
74
|
%
|
80
|
%
|
86
|
%
|
Global Fixed Income
|
45
|
%
|
48
|
%
|
98
|
%
|
|
10
|
%
|
20
|
%
|
86
|
%
|
Stable Value
|
100
|
%
|
100
|
%
|
100
|
%
|
|
100
|
%
|
100
|
%
|
100
|
%
|
Other
|
|
|
|
|
|
|
|
||||||
Alternatives
|
67
|
%
|
54
|
%
|
58
|
%
|
|
65
|
%
|
70
|
%
|
33
|
%
|
Balanced
|
59
|
%
|
59
|
%
|
45
|
%
|
|
96
|
%
|
90
|
%
|
94
|
%
|
(1)
|
AUM measured in the one-, three-, and five-year peer group rankings represents
58%
,
57%
, and
55%
of total Invesco AUM, respectively, and AUM measured versus benchmark on a one-, three-, and five-year basis represents
70%
,
68%
, and
64%
of total Invesco AUM, respectively, as of
December 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 CLOs. 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.
|
Spot Foreign Exchange Rates
|
December 31, 2016
|
|
December 31, 2015
|
|
December 31, 2014
|
|||
Pound Sterling ($ per £)
|
1.236
|
|
|
1.474
|
|
|
1.559
|
|
Canadian Dollar (CAD per $)
|
1.341
|
|
|
1.389
|
|
|
1.158
|
|
Japan (¥ per $)
|
116.600
|
|
|
120.275
|
|
|
119.880
|
|
Euro ($ per Euro)
|
1.054
|
|
|
1.086
|
|
|
1.210
|
|
|
Years ended December 31,
|
|||||||
Average Foreign Exchange Rates
|
2016
|
|
2015
|
|
2014
|
|||
Pound Sterling ($ per £)
|
1.356
|
|
|
1.528
|
|
|
1.647
|
|
Canadian Dollar (CAD per $)
|
1.324
|
|
|
1.276
|
|
|
1.107
|
|
Japan (¥ per $)
|
108.517
|
|
|
121.014
|
|
|
105.994
|
|
Euro ($ per Euro)
|
1.107
|
|
|
1.110
|
|
|
1.322
|
|
|
2016
|
|
2015
|
|
2014
|
|||||||||||||||||||||
$ in billions
|
Total AUM
|
|
Active
|
|
Passive
|
|
Total AUM
|
|
Active
|
|
Passive
|
|
Total AUM
|
|
Active
|
|
Passive
|
|||||||||
January 1
|
775.6
|
|
|
636.5
|
|
|
139.1
|
|
|
792.4
|
|
|
651.0
|
|
|
141.4
|
|
|
778.7
|
|
|
639.0
|
|
|
139.7
|
|
Long-term inflows
|
186.5
|
|
|
141.9
|
|
|
44.6
|
|
|
189.1
|
|
|
153.6
|
|
|
35.5
|
|
|
183.1
|
|
|
150.3
|
|
|
32.8
|
|
Long-term outflows
|
(173.8
|
)
|
|
(135.0
|
)
|
|
(38.8
|
)
|
|
(172.9
|
)
|
|
(139.5
|
)
|
|
(33.4
|
)
|
|
(175.0
|
)
|
|
(148.2
|
)
|
|
(26.8
|
)
|
Long-term net flows
|
12.7
|
|
|
6.9
|
|
|
5.8
|
|
|
16.2
|
|
|
14.1
|
|
|
2.1
|
|
|
8.1
|
|
|
2.1
|
|
|
6.0
|
|
Net flows in Invesco Powershares QQQ fund
|
(2.6
|
)
|
|
—
|
|
|
(2.6
|
)
|
|
(1.8
|
)
|
|
—
|
|
|
(1.8
|
)
|
|
(10.7
|
)
|
|
—
|
|
|
(10.7
|
)
|
Net flows in institutional money market funds
|
12.8
|
|
|
13.1
|
|
|
(0.3
|
)
|
|
(11.9
|
)
|
|
(12.3
|
)
|
|
0.4
|
|
|
(5.8
|
)
|
|
(5.8
|
)
|
|
—
|
|
Total net flows
|
22.9
|
|
|
20.0
|
|
|
2.9
|
|
|
2.5
|
|
|
1.8
|
|
|
0.7
|
|
|
(8.4
|
)
|
|
(3.7
|
)
|
|
(4.7
|
)
|
Market gains and losses/reinvestment
|
37.7
|
|
|
32.1
|
|
|
5.6
|
|
|
(2.6
|
)
|
|
(0.3
|
)
|
|
(2.3
|
)
|
|
34.7
|
|
|
27.9
|
|
|
6.8
|
|
Acquisitions/dispositions, net
|
(1.2
|
)
|
|
2.0
|
|
|
(3.2
|
)
|
|
(0.7
|
)
|
|
—
|
|
|
(0.7
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
Foreign currency translation
|
(22.1
|
)
|
|
(22.1
|
)
|
|
—
|
|
|
(16.0
|
)
|
|
(16.0
|
)
|
|
—
|
|
|
(12.6
|
)
|
|
(12.2
|
)
|
|
(0.4
|
)
|
December 31
|
812.9
|
|
|
668.5
|
|
|
144.4
|
|
|
775.6
|
|
|
636.5
|
|
|
139.1
|
|
|
792.4
|
|
|
651.0
|
|
|
141.4
|
|
Average AUM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Average long-term AUM
|
683.9
|
|
|
586.8
|
|
|
97.1
|
|
|
688.7
|
|
|
587.5
|
|
|
101.2
|
|
|
673.5
|
|
|
574.4
|
|
|
99.1
|
|
Average AUM
|
788.8
|
|
|
653.4
|
|
|
135.4
|
|
|
794.7
|
|
|
653.6
|
|
|
141.1
|
|
|
790.3
|
|
|
647.5
|
|
|
142.8
|
|
Revenue yield
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Gross revenue yield on AUM
(1)
|
60.7
|
|
|
70.3
|
|
|
15.3
|
|
|
65.0
|
|
|
75.9
|
|
|
14.5
|
|
|
65.5
|
|
|
77.2
|
|
|
13.0
|
|
Gross revenue yield on AUM before performance fees
(2)
|
60.2
|
|
|
69.6
|
|
|
15.3
|
|
|
63.9
|
|
|
74.6
|
|
|
14.5
|
|
|
64.8
|
|
|
76.3
|
|
|
13.0
|
|
Net revenue yield on AUM
(2)
|
43.0
|
|
|
48.8
|
|
|
15.3
|
|
|
45.8
|
|
|
52.6
|
|
|
14.5
|
|
|
45.7
|
|
|
52.9
|
|
|
13.0
|
|
Net revenue yield on AUM before performance fees
(2)
|
42.4
|
|
|
48.1
|
|
|
15.3
|
|
|
44.6
|
|
|
51.0
|
|
|
14.5
|
|
|
44.8
|
|
|
51.8
|
|
|
13.0
|
|
(1)
|
Gross revenue yield on AUM is equal to annualized total operating revenues divided by average AUM, excluding joint venture (JV) AUM. Our share of the average AUM in
2016
for our JVs in China was
$9.2 billion
(
2015
:
$6.1 billion
,
2014
:
$4.9 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 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, management does not consider the gross revenue yield measure to be 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.
|
$ in billions
|
Total
|
|
Retail
|
|
Institutional
|
|||
December 31, 2015
|
775.6
|
|
|
514.8
|
|
|
260.8
|
|
Long-term inflows
|
186.5
|
|
|
143.8
|
|
|
42.7
|
|
Long-term outflows
|
(173.8
|
)
|
|
(142.1
|
)
|
|
(31.7
|
)
|
Long-term net flows
|
12.7
|
|
|
1.7
|
|
|
11.0
|
|
Net flows in Invesco PowerShares QQQ fund
|
(2.6
|
)
|
|
(2.6
|
)
|
|
—
|
|
Net flows in institutional money market funds
|
12.8
|
|
|
—
|
|
|
12.8
|
|
Total net flows
|
22.9
|
|
|
(0.9
|
)
|
|
23.8
|
|
Market gains and losses/reinvestment
|
37.7
|
|
|
30.4
|
|
|
7.3
|
|
Acquisitions/dispositions, net
|
(1.2
|
)
|
|
0.4
|
|
|
(1.6
|
)
|
Foreign currency translation
|
(22.1
|
)
|
|
(18.2
|
)
|
|
(3.9
|
)
|
December 31, 2016
|
812.9
|
|
|
526.5
|
|
|
286.4
|
|
|
|
|
|
|
|
|||
December 31, 2014
|
792.4
|
|
|
532.5
|
|
|
259.9
|
|
Long-term inflows
|
189.1
|
|
|
139.1
|
|
|
50.0
|
|
Long-term outflows
|
(172.9
|
)
|
|
(136.3
|
)
|
|
(36.6
|
)
|
Long-term net flows
|
16.2
|
|
|
2.8
|
|
|
13.4
|
|
Net flows in Invesco PowerShares QQQ fund
|
(1.8
|
)
|
|
(1.8
|
)
|
|
—
|
|
Net flows in institutional money market funds
|
(11.9
|
)
|
|
—
|
|
|
(11.9
|
)
|
Total net flows
|
2.5
|
|
|
1.0
|
|
|
1.5
|
|
Market gains and losses/reinvestment
|
(2.6
|
)
|
|
(4.7
|
)
|
|
2.1
|
|
Acquisitions/dispositions, net
|
(0.7
|
)
|
|
(0.7
|
)
|
|
—
|
|
Foreign currency translation
|
(16.0
|
)
|
|
(13.3
|
)
|
|
(2.7
|
)
|
December 31, 2015
|
775.6
|
|
|
514.8
|
|
|
260.8
|
|
|
|
|
|
|
|
|||
December 31, 2013
|
778.7
|
|
|
519.6
|
|
|
259.1
|
|
Long-term inflows
|
183.1
|
|
|
146.4
|
|
|
36.7
|
|
Long-term outflows
|
(175.0
|
)
|
|
(141.4
|
)
|
|
(33.6
|
)
|
Long-term net flows
|
8.1
|
|
|
5.0
|
|
|
3.1
|
|
Net flows in Invesco PowerShares QQQ fund
|
(10.7
|
)
|
|
(10.7
|
)
|
|
—
|
|
Net flows in institutional money market funds
|
(5.8
|
)
|
|
—
|
|
|
(5.8
|
)
|
Total net flows
|
(8.4
|
)
|
|
(5.7
|
)
|
|
(2.7
|
)
|
Market gains and losses/reinvestment
|
34.7
|
|
|
27.3
|
|
|
7.4
|
|
Foreign currency translation
|
(12.6
|
)
|
|
(8.7
|
)
|
|
(3.9
|
)
|
December 31, 2014
|
792.4
|
|
|
532.5
|
|
|
259.9
|
|
$ in billions
|
Total
|
|
Retail
|
|
Institutional
|
|||
December 31, 2015
|
139.1
|
|
|
118.7
|
|
|
20.4
|
|
Long-term inflows
|
44.6
|
|
|
42.7
|
|
|
1.9
|
|
Long-term outflows
|
(38.8
|
)
|
|
(35.7
|
)
|
|
(3.1
|
)
|
Long-term net flows
|
5.8
|
|
|
7.0
|
|
|
(1.2
|
)
|
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
|
2.9
|
|
|
4.4
|
|
|
(1.5
|
)
|
Market gains and losses/reinvestment
|
5.6
|
|
|
5.7
|
|
|
(0.1
|
)
|
Acquisitions/dispositions, net
|
(3.2
|
)
|
|
—
|
|
|
(3.2
|
)
|
Foreign currency translation
|
—
|
|
|
—
|
|
|
—
|
|
December 31, 2016
|
144.4
|
|
|
128.8
|
|
|
15.6
|
|
|
|
|
|
|
|
|||
December 31, 2014
|
141.4
|
|
|
119.7
|
|
|
21.7
|
|
Long-term inflows
|
35.5
|
|
|
32.3
|
|
|
3.2
|
|
Long-term outflows
|
(33.4
|
)
|
|
(29.4
|
)
|
|
(4.0
|
)
|
Long-term net flows
|
2.1
|
|
|
2.9
|
|
|
(0.8
|
)
|
Net flows in Invesco PowerShares QQQ fund
|
(1.8
|
)
|
|
(1.8
|
)
|
|
—
|
|
Net flows in institutional money market funds
|
0.4
|
|
|
—
|
|
|
0.4
|
|
Total net flows
|
0.7
|
|
|
1.1
|
|
|
(0.4
|
)
|
Market gains and losses/reinvestment
|
(2.3
|
)
|
|
(1.4
|
)
|
|
(0.9
|
)
|
Acquisitions/dispositions, net
|
(0.7
|
)
|
|
(0.7
|
)
|
|
—
|
|
Foreign currency translation
|
—
|
|
|
—
|
|
|
—
|
|
December 31, 2015
|
139.1
|
|
|
118.7
|
|
|
20.4
|
|
|
|
|
|
|
|
|||
December 31, 2013
|
139.7
|
|
|
118.2
|
|
|
21.5
|
|
Long-term inflows
|
32.8
|
|
|
27.7
|
|
|
5.1
|
|
Long-term outflows
|
(26.8
|
)
|
|
(22.2
|
)
|
|
(4.6
|
)
|
Long-term net flows
|
6.0
|
|
|
5.5
|
|
|
0.5
|
|
Net flows in Invesco PowerShares QQQ fund
|
(10.7
|
)
|
|
(10.7
|
)
|
|
—
|
|
Net flows in institutional money market funds
|
—
|
|
|
—
|
|
|
—
|
|
Total net flows
|
(4.7
|
)
|
|
(5.2
|
)
|
|
0.5
|
|
Market gains and losses/reinvestment
|
6.8
|
|
|
6.7
|
|
|
0.1
|
|
Foreign currency translation
|
(0.4
|
)
|
|
—
|
|
|
(0.4
|
)
|
December 31, 2014
|
141.4
|
|
|
119.7
|
|
|
21.7
|
|
$ in billions
|
Total
|
|
Equity
|
|
Fixed Income
|
|
Balanced
|
|
Money Market
(4)
|
|
Alternatives
(3)
|
||||||
December 31, 2015
|
775.6
|
|
|
370.9
|
|
|
187.9
|
|
|
48.1
|
|
|
64.6
|
|
|
104.1
|
|
Long-term inflows
|
186.5
|
|
|
80.9
|
|
|
50.4
|
|
|
9.8
|
|
|
4.0
|
|
|
41.4
|
|
Long-term outflows
|
(173.8
|
)
|
|
(101.8
|
)
|
|
(35.3
|
)
|
|
(11.5
|
)
|
|
(3.8
|
)
|
|
(21.4
|
)
|
Long-term net flows
|
12.7
|
|
|
(20.9
|
)
|
|
15.1
|
|
|
(1.7
|
)
|
|
0.2
|
|
|
20.0
|
|
Net flows in Invesco PowerShares QQQ fund
|
(2.6
|
)
|
|
(2.6
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net flows in institutional money market funds
|
12.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12.8
|
|
|
—
|
|
Total net flows
|
22.9
|
|
|
(23.5
|
)
|
|
15.1
|
|
|
(1.7
|
)
|
|
13.0
|
|
|
20.0
|
|
Market gains and losses/reinvestment
|
37.7
|
|
|
26.6
|
|
|
4.3
|
|
|
2.5
|
|
|
0.5
|
|
|
3.8
|
|
Acquisitions/dispositions, net
|
(1.2
|
)
|
|
0.4
|
|
|
(1.1
|
)
|
|
—
|
|
|
0.4
|
|
|
(0.9
|
)
|
Foreign currency translation
|
(22.1
|
)
|
|
(10.3
|
)
|
|
(4.5
|
)
|
|
(2.1
|
)
|
|
(0.2
|
)
|
|
(5.0
|
)
|
December 31, 2016
|
812.9
|
|
|
364.1
|
|
|
201.7
|
|
|
46.8
|
|
|
78.3
|
|
|
122.0
|
|
Average AUM
|
788.8
|
|
|
356.3
|
|
|
196.6
|
|
|
47.3
|
|
|
74.3
|
|
|
114.3
|
|
% of total average AUM
|
100.0
|
%
|
|
45.2
|
%
|
|
24.9
|
%
|
|
6.0
|
%
|
|
9.4
|
%
|
|
14.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
December 31, 2014
|
792.4
|
|
|
384.4
|
|
|
181.6
|
|
|
50.6
|
|
|
76.5
|
|
|
99.3
|
|
Long-term inflows
|
189.1
|
|
|
89.2
|
|
|
45.5
|
|
|
16.1
|
|
|
3.7
|
|
|
34.6
|
|
Long-term outflows
|
(172.9
|
)
|
|
(94.5
|
)
|
|
(35.2
|
)
|
|
(14.7
|
)
|
|
(3.9
|
)
|
|
(24.6
|
)
|
Long-term net flows
|
16.2
|
|
|
(5.3
|
)
|
|
10.3
|
|
|
1.4
|
|
|
(0.2
|
)
|
|
10.0
|
|
Net flows in Invesco PowerShares QQQ fund
|
(1.8
|
)
|
|
(1.8
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net flows in institutional money market funds
|
(11.9
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(11.9
|
)
|
|
—
|
|
Total net flows
|
2.5
|
|
|
(7.1
|
)
|
|
10.3
|
|
|
1.4
|
|
|
(12.1
|
)
|
|
10.0
|
|
Market gains and losses/reinvestment
|
(2.6
|
)
|
|
2.1
|
|
|
(1.4
|
)
|
|
(0.4
|
)
|
|
0.2
|
|
|
(3.1
|
)
|
Acquisitions/dispositions, net
|
(0.7
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.7
|
)
|
Foreign currency translation
|
(16.0
|
)
|
|
(8.5
|
)
|
|
(2.6
|
)
|
|
(3.5
|
)
|
|
—
|
|
|
(1.4
|
)
|
December 31, 2015
|
775.6
|
|
|
370.9
|
|
|
187.9
|
|
|
48.1
|
|
|
64.6
|
|
|
104.1
|
|
Average AUM
|
794.7
|
|
|
386.6
|
|
|
185.6
|
|
|
51.2
|
|
|
70.7
|
|
|
100.6
|
|
% of total average AUM
|
100.0
|
%
|
|
48.6
|
%
|
|
23.4
|
%
|
|
6.4
|
%
|
|
8.9
|
%
|
|
12.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
December 31, 2013
|
778.7
|
|
|
383.1
|
|
|
171.7
|
|
|
53.3
|
|
|
82.7
|
|
|
87.9
|
|
Long-term inflows
|
183.1
|
|
|
92.9
|
|
|
37.8
|
|
|
17.0
|
|
|
3.6
|
|
|
31.8
|
|
Long-term outflows
|
(175.0
|
)
|
|
(99.6
|
)
|
|
(30.5
|
)
|
|
(19.1
|
)
|
|
(3.8
|
)
|
|
(22.0
|
)
|
Long-term net flows
|
8.1
|
|
|
(6.7
|
)
|
|
7.3
|
|
|
(2.1
|
)
|
|
(0.2
|
)
|
|
9.8
|
|
Net flows in Invesco PowerShares QQQ fund
|
(10.7
|
)
|
|
(10.7
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net flows in institutional money market funds
|
(5.8
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5.8
|
)
|
|
—
|
|
Total net flows
|
(8.4
|
)
|
|
(17.4
|
)
|
|
7.3
|
|
|
(2.1
|
)
|
|
(6.0
|
)
|
|
9.8
|
|
Market gains and losses/reinvestment
|
34.7
|
|
|
26.0
|
|
|
4.6
|
|
|
1.1
|
|
|
(0.2
|
)
|
|
3.2
|
|
Foreign currency translation
|
(12.6
|
)
|
|
(7.3
|
)
|
|
(2.0
|
)
|
|
(1.7
|
)
|
|
—
|
|
|
(1.6
|
)
|
December 31, 2014
|
792.4
|
|
|
384.4
|
|
|
181.6
|
|
|
50.6
|
|
|
76.5
|
|
|
99.3
|
|
Average AUM
|
790.3
|
|
|
386.9
|
|
|
178.8
|
|
|
52.2
|
|
|
77.4
|
|
|
95.0
|
|
% of total average AUM
|
100.0
|
%
|
|
49.0
|
%
|
|
22.6
|
%
|
|
6.6
|
%
|
|
9.8
|
%
|
|
12.0
|
%
|
$ 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
|
44.6
|
|
|
28.3
|
|
|
12.7
|
|
|
—
|
|
|
—
|
|
|
3.6
|
|
Long-term outflows
|
(38.8
|
)
|
|
(29.0
|
)
|
|
(6.4
|
)
|
|
—
|
|
|
—
|
|
|
(3.4
|
)
|
Long-term net flows
|
5.8
|
|
|
(0.7
|
)
|
|
6.3
|
|
|
—
|
|
|
—
|
|
|
0.2
|
|
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
|
2.9
|
|
|
(3.3
|
)
|
|
6.3
|
|
|
—
|
|
|
(0.3
|
)
|
|
0.2
|
|
Market gains and losses/reinvestment
|
5.6
|
|
|
5.8
|
|
|
(0.5
|
)
|
|
—
|
|
|
(0.1
|
)
|
|
0.4
|
|
Acquisitions/dispositions, net
|
(3.2
|
)
|
|
—
|
|
|
(2.7
|
)
|
|
—
|
|
|
—
|
|
|
(0.5
|
)
|
Foreign currency translation
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
December 31, 2016
|
144.4
|
|
|
93.5
|
|
|
41.7
|
|
|
—
|
|
|
—
|
|
|
9.2
|
|
Average AUM
|
135.4
|
|
|
87.4
|
|
|
38.9
|
|
|
—
|
|
|
0.1
|
|
|
9.0
|
|
% of total average AUM
|
100.0
|
%
|
|
64.5
|
%
|
|
28.7
|
%
|
|
—
|
%
|
|
0.1
|
%
|
|
6.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
December 31, 2014
|
141.4
|
|
|
88.2
|
|
|
41.1
|
|
|
—
|
|
|
—
|
|
|
12.1
|
|
Long-term inflows
|
35.5
|
|
|
25.8
|
|
|
5.9
|
|
|
—
|
|
|
—
|
|
|
3.8
|
|
Long-term outflows
|
(33.4
|
)
|
|
(22.1
|
)
|
|
(6.3
|
)
|
|
—
|
|
|
—
|
|
|
(5.0
|
)
|
Long-term net flows
|
2.1
|
|
|
3.7
|
|
|
(0.4
|
)
|
|
—
|
|
|
—
|
|
|
(1.2
|
)
|
Net flows in Invesco PowerShares QQQ fund
|
(1.8
|
)
|
|
(1.8
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net flows in institutional money market funds
|
0.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.4
|
|
|
—
|
|
Total net flows
|
0.7
|
|
|
1.9
|
|
|
(0.4
|
)
|
|
—
|
|
|
0.4
|
|
|
(1.2
|
)
|
Market gains and losses/reinvestment
|
(2.3
|
)
|
|
0.9
|
|
|
(2.1
|
)
|
|
—
|
|
|
—
|
|
|
(1.1
|
)
|
Acquisitions/dispositions, net
|
(0.7
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.7
|
)
|
Foreign currency translation
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
December 31, 2015
|
139.1
|
|
|
91.0
|
|
|
38.6
|
|
|
—
|
|
|
0.4
|
|
|
9.1
|
|
Average AUM
|
141.1
|
|
|
89.4
|
|
|
41.1
|
|
|
—
|
|
|
0.1
|
|
|
10.5
|
|
% of total average AUM
|
100.0
|
%
|
|
63.4
|
%
|
|
29.1
|
%
|
|
—
|
%
|
|
0.1
|
%
|
|
7.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
December 31, 2013
|
139.7
|
|
|
85.6
|
|
|
39.5
|
|
|
—
|
|
|
—
|
|
|
14.6
|
|
Long-term inflows
|
32.8
|
|
|
20.5
|
|
|
8.5
|
|
|
—
|
|
|
—
|
|
|
3.8
|
|
Long-term outflows
|
(26.8
|
)
|
|
(15.2
|
)
|
|
(7.4
|
)
|
|
—
|
|
|
—
|
|
|
(4.2
|
)
|
Long-term net flows
|
6.0
|
|
|
5.3
|
|
|
1.1
|
|
|
—
|
|
|
—
|
|
|
(0.4
|
)
|
Net flows in Invesco PowerShares QQQ fund
|
(10.7
|
)
|
|
(10.7
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net flows in institutional money market funds
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Total net flows
|
(4.7
|
)
|
|
(5.4
|
)
|
|
1.1
|
|
|
—
|
|
|
—
|
|
|
(0.4
|
)
|
Market gains and losses/reinvestment
|
6.8
|
|
|
8.0
|
|
|
0.5
|
|
|
—
|
|
|
—
|
|
|
(1.7
|
)
|
Foreign currency translation
|
(0.4
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.4
|
)
|
December 31, 2014
|
141.4
|
|
|
88.2
|
|
|
41.1
|
|
|
—
|
|
|
—
|
|
|
12.1
|
|
Average AUM
|
142.8
|
|
|
87.7
|
|
|
41.1
|
|
|
—
|
|
|
—
|
|
|
14.0
|
|
% of total average AUM
|
100.0
|
%
|
|
61.4
|
%
|
|
28.8
|
%
|
|
—
|
%
|
|
—
|
%
|
|
9.8
|
%
|
$ 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
|
186.5
|
|
|
110.4
|
|
|
3.5
|
|
|
15.7
|
|
|
25.9
|
|
|
31.0
|
|
Long-term outflows
|
(173.8
|
)
|
|
(108.3
|
)
|
|
(4.6
|
)
|
|
(16.2
|
)
|
|
(29.2
|
)
|
|
(15.5
|
)
|
Long-term net flows
|
12.7
|
|
|
2.1
|
|
|
(1.1
|
)
|
|
(0.5
|
)
|
|
(3.3
|
)
|
|
15.5
|
|
Net flows in Invesco PowerShares QQQ fund
|
(2.6
|
)
|
|
(2.6
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net flows in institutional money market funds
|
12.8
|
|
|
7.9
|
|
|
0.4
|
|
|
3.2
|
|
|
(0.1
|
)
|
|
1.4
|
|
Total net flows
|
22.9
|
|
|
7.4
|
|
|
(0.7
|
)
|
|
2.7
|
|
|
(3.4
|
)
|
|
16.9
|
|
Market gains and losses/reinvestment
|
37.7
|
|
|
25.1
|
|
|
1.4
|
|
|
7.1
|
|
|
2.7
|
|
|
1.4
|
|
Acquisitions/dispositions, net
|
(1.2
|
)
|
|
(3.6
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2.4
|
|
Foreign currency translation
|
(22.1
|
)
|
|
(0.1
|
)
|
|
0.7
|
|
|
(15.8
|
)
|
|
(2.6
|
)
|
|
(4.3
|
)
|
December 31, 2016
|
812.9
|
|
|
539.5
|
|
|
23.1
|
|
|
98.2
|
|
|
72.1
|
|
|
80.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
December 31, 2014
|
792.4
|
|
|
532.1
|
|
|
25.8
|
|
|
105.1
|
|
|
71.1
|
|
|
58.3
|
|
Long-term inflows
|
189.1
|
|
|
99.1
|
|
|
3.7
|
|
|
18.8
|
|
|
37.5
|
|
|
30.0
|
|
Long-term outflows
|
(172.9
|
)
|
|
(97.3
|
)
|
|
(4.2
|
)
|
|
(17.9
|
)
|
|
(29.2
|
)
|
|
(24.3
|
)
|
Long-term net flows
|
16.2
|
|
|
1.8
|
|
|
(0.5
|
)
|
|
0.9
|
|
|
8.3
|
|
|
5.7
|
|
Net flows in Invesco PowerShares QQQ fund
|
(1.8
|
)
|
|
(1.8
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net flows in institutional money market funds
|
(11.9
|
)
|
|
(13.9
|
)
|
|
—
|
|
|
0.7
|
|
|
(0.3
|
)
|
|
1.6
|
|
Total net flows
|
2.5
|
|
|
(13.9
|
)
|
|
(0.5
|
)
|
|
1.6
|
|
|
8.0
|
|
|
7.3
|
|
Market gains and losses/reinvestment
|
(2.6
|
)
|
|
(6.8
|
)
|
|
0.9
|
|
|
3.0
|
|
|
1.3
|
|
|
(1.0
|
)
|
Acquisitions/dispositions, net
|
(0.7
|
)
|
|
(0.7
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Foreign currency translation
|
(16.0
|
)
|
|
—
|
|
|
(4.5
|
)
|
|
(5.5
|
)
|
|
(5.0
|
)
|
|
(1.0
|
)
|
December 31, 2015
|
775.6
|
|
|
510.7
|
|
|
21.7
|
|
|
104.2
|
|
|
75.4
|
|
|
63.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
December 31, 2013
|
778.7
|
|
|
521.3
|
|
|
27.1
|
|
|
114.8
|
|
|
60.9
|
|
|
54.6
|
|
Long-term inflows
|
183.1
|
|
|
91.3
|
|
|
3.9
|
|
|
22.0
|
|
|
40.8
|
|
|
25.1
|
|
Long-term outflows
|
(175.0
|
)
|
|
(87.8
|
)
|
|
(4.5
|
)
|
|
(35.9
|
)
|
|
(24.8
|
)
|
|
(22.0
|
)
|
Long-term net flows
|
8.1
|
|
|
3.5
|
|
|
(0.6
|
)
|
|
(13.9
|
)
|
|
16.0
|
|
|
3.1
|
|
Net flows in Invesco PowerShares QQQ fund
|
(10.7
|
)
|
|
(10.7
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net flows in institutional money market funds
|
(5.8
|
)
|
|
(4.8
|
)
|
|
(0.3
|
)
|
|
2.0
|
|
|
(3.1
|
)
|
|
0.4
|
|
Total net flows
|
(8.4
|
)
|
|
(12.0
|
)
|
|
(0.9
|
)
|
|
(11.9
|
)
|
|
12.9
|
|
|
3.5
|
|
Market gains and losses/reinvestment
|
34.7
|
|
|
22.9
|
|
|
2.0
|
|
|
7.6
|
|
|
(0.4
|
)
|
|
2.6
|
|
Foreign currency translation
|
(12.6
|
)
|
|
(0.1
|
)
|
|
(2.4
|
)
|
|
(5.4
|
)
|
|
(2.3
|
)
|
|
(2.4
|
)
|
December 31, 2014
|
792.4
|
|
|
532.1
|
|
|
25.8
|
|
|
105.1
|
|
|
71.1
|
|
|
58.3
|
|
$ 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
|
44.6
|
|
|
43.8
|
|
|
0.3
|
|
|
—
|
|
|
0.5
|
|
|
—
|
|
Long-term outflows
|
(38.8
|
)
|
|
(37.9
|
)
|
|
(0.2
|
)
|
|
—
|
|
|
(0.7
|
)
|
|
—
|
|
Long-term net flows
|
5.8
|
|
|
5.9
|
|
|
0.1
|
|
|
—
|
|
|
(0.2
|
)
|
|
—
|
|
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
|
2.9
|
|
|
3.3
|
|
|
0.1
|
|
|
—
|
|
|
(0.2
|
)
|
|
(0.3
|
)
|
Market gains and losses/reinvestment
|
5.6
|
|
|
5.4
|
|
|
—
|
|
|
—
|
|
|
0.2
|
|
|
—
|
|
Acquisitions/dispositions, net
|
(3.2
|
)
|
|
(3.2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Foreign currency translation
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
December 31, 2016
|
144.4
|
|
|
139.9
|
|
|
0.5
|
|
|
—
|
|
|
1.9
|
|
|
2.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
December 31, 2014
|
141.4
|
|
|
137.6
|
|
|
0.2
|
|
|
—
|
|
|
1.8
|
|
|
1.8
|
|
Long-term inflows
|
35.5
|
|
|
33.3
|
|
|
0.1
|
|
|
—
|
|
|
0.6
|
|
|
1.5
|
|
Long-term outflows
|
(33.4
|
)
|
|
(31.3
|
)
|
|
—
|
|
|
—
|
|
|
(0.6
|
)
|
|
(1.5
|
)
|
Long-term net flows
|
2.1
|
|
|
2.0
|
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net flows in Invesco PowerShares QQQ fund
|
(1.8
|
)
|
|
(1.8
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net flows in institutional money market funds
|
0.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.4
|
|
Total net flows
|
0.7
|
|
|
0.2
|
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
0.4
|
|
Market gains and losses/reinvestment
|
(2.3
|
)
|
|
(2.7
|
)
|
|
0.1
|
|
|
—
|
|
|
0.1
|
|
|
0.2
|
|
Acquisitions/dispositions, net
|
(0.7
|
)
|
|
(0.7
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Foreign currency translation
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
December 31, 2015
|
139.1
|
|
|
134.4
|
|
|
0.4
|
|
|
—
|
|
|
1.9
|
|
|
2.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
December 31, 2013
|
139.7
|
|
|
135.2
|
|
|
0.1
|
|
|
—
|
|
|
1.8
|
|
|
2.6
|
|
Long-term inflows
|
32.8
|
|
|
32.1
|
|
|
0.1
|
|
|
—
|
|
|
0.4
|
|
|
0.2
|
|
Long-term outflows
|
(26.8
|
)
|
|
(25.7
|
)
|
|
—
|
|
|
—
|
|
|
(0.5
|
)
|
|
(0.6
|
)
|
Long-term net flows
|
6.0
|
|
|
6.4
|
|
|
0.1
|
|
|
—
|
|
|
(0.1
|
)
|
|
(0.4
|
)
|
Net flows in Invesco PowerShares QQQ fund
|
(10.7
|
)
|
|
(10.7
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net flows in institutional money market funds
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Total net flows
|
(4.7
|
)
|
|
(4.3
|
)
|
|
0.1
|
|
|
—
|
|
|
(0.1
|
)
|
|
(0.4
|
)
|
Market gains and losses/reinvestment
|
6.8
|
|
|
6.7
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
Foreign currency translation
|
(0.4
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.4
|
)
|
December 31, 2014
|
141.4
|
|
|
137.6
|
|
|
0.2
|
|
|
—
|
|
|
1.8
|
|
|
1.8
|
|
(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)
|
See Item 1, “Business - Investment Management Capabilities” for a description of the investment objectives included within the Alternatives asset class.
|
(4)
|
Ending Money Market AUM includes
$70.9 billion
in institutional money market AUM and
$7.4 billion
in retail money market AUM.
|
(5)
|
Client domicile disclosure groups AUM by the domicile of the underlying clients.
|
|
|
|
|
|
|
|
Variance
|
|||||||||||||
|
Years ended December 31,
|
|
2016 vs 2015
|
|
2015 vs 2014
|
|||||||||||||||
$ in millions
|
2016
|
|
2015
|
|
2014
|
|
$ Change
|
|
% Change
|
|
$ Change
|
|
% Change
|
|||||||
Investment management fees
|
3,773.1
|
|
|
4,061.1
|
|
|
4,054.1
|
|
|
(288.0
|
)
|
|
(7.1
|
)%
|
|
7.0
|
|
|
0.2
|
%
|
Service and distribution fees
|
823.6
|
|
|
855.4
|
|
|
893.1
|
|
|
(31.8
|
)
|
|
(3.7
|
)%
|
|
(37.7
|
)
|
|
(4.2
|
)%
|
Performance fees
|
44.3
|
|
|
85.9
|
|
|
61.1
|
|
|
(41.6
|
)
|
|
(48.4
|
)%
|
|
24.8
|
|
|
40.6
|
%
|
Other
|
93.4
|
|
|
120.5
|
|
|
138.8
|
|
|
(27.1
|
)
|
|
(22.5
|
)%
|
|
(18.3
|
)
|
|
(13.2
|
)%
|
Total operating revenues
|
4,734.4
|
|
|
5,122.9
|
|
|
5,147.1
|
|
|
(388.5
|
)
|
|
(7.6
|
)%
|
|
(24.2
|
)
|
|
(0.5
|
)%
|
Third-party distribution, service and advisory expenses
|
(1,407.2
|
)
|
|
(1,579.9
|
)
|
|
(1,630.7
|
)
|
|
172.7
|
|
|
(10.9
|
)%
|
|
50.8
|
|
|
(3.1
|
)%
|
Proportional share of revenues, net of third-party distribution expenses, from joint venture investments
|
43.7
|
|
|
61.0
|
|
|
56.7
|
|
|
(17.3
|
)
|
|
(28.4
|
)%
|
|
4.3
|
|
|
7.6
|
%
|
CIP
|
22.3
|
|
|
39.2
|
|
|
35.2
|
|
|
(16.9
|
)
|
|
(43.1
|
)%
|
|
4.0
|
|
|
11.4
|
%
|
Net revenues*
|
3,393.2
|
|
|
3,643.2
|
|
|
3,608.3
|
|
|
(250.0
|
)
|
|
(6.9
|
)%
|
|
34.9
|
|
|
1.0
|
%
|
*
|
Net revenues are operating revenues less third-party distribution, service and advisory expenses, plus our proportional share of net revenues from joint venture arrangements, plus management and performance fees earned from, less other revenues recorded by, CIP, plus other reconciling items. See “Schedule of Non-GAAP Information” for additional important disclosures regarding the use of net revenues.
|
|
|
|
|
|
|
|
Variance
|
|||||||||||||
|
Years ended December 31,
|
|
2016 vs 2015
|
|
2015 vs 2014
|
|||||||||||||||
$ in millions
|
2016
|
|
2015
|
|
2014
|
|
$ Change
|
|
% Change
|
|
$ Change
|
|
% Change
|
|||||||
Third-party distribution, service and advisory
|
1,407.2
|
|
|
1,579.9
|
|
|
1,630.7
|
|
|
(172.7
|
)
|
|
(10.9
|
)%
|
|
(50.8
|
)
|
|
(3.1
|
)%
|
Employee compensation
|
1,378.8
|
|
|
1,395.5
|
|
|
1,394.5
|
|
|
(16.7
|
)
|
|
(1.2
|
)%
|
|
1.0
|
|
|
0.1
|
%
|
Marketing
|
114.8
|
|
|
115.4
|
|
|
112.1
|
|
|
(0.6
|
)
|
|
(0.5
|
)%
|
|
3.3
|
|
|
2.9
|
%
|
Property, office and technology
|
325.7
|
|
|
312.0
|
|
|
336.4
|
|
|
13.7
|
|
|
4.4
|
%
|
|
(24.4
|
)
|
|
(7.3
|
)%
|
General and administrative
|
331.5
|
|
|
361.7
|
|
|
396.5
|
|
|
(30.2
|
)
|
|
(8.3
|
)%
|
|
(34.8
|
)
|
|
(8.8
|
)%
|
Total operating expenses
|
3,558.0
|
|
|
3,764.5
|
|
|
3,870.2
|
|
|
(206.5
|
)
|
|
(5.5
|
)%
|
|
(105.7
|
)
|
|
(2.7
|
)%
|
$ in millions
|
2016
|
|
% of Total Operating Expenses
|
|
% of Operating Revenues
|
|
2015
|
|
% of Total Operating Expenses
|
|
% of Operating Revenues
|
|
2014
|
|
% of Total Operating Expenses
|
|
% of Operating Revenues
|
|||||||||
Third-party distribution, service and advisory
|
1,407.2
|
|
|
39.6
|
%
|
|
29.7
|
%
|
|
1,579.9
|
|
|
42.0
|
%
|
|
30.8
|
%
|
|
1,630.7
|
|
|
42.1
|
%
|
|
31.7
|
%
|
Employee compensation
|
1,378.8
|
|
|
38.8
|
%
|
|
29.1
|
%
|
|
1,395.5
|
|
|
37.1
|
%
|
|
27.2
|
%
|
|
1,394.5
|
|
|
36.0
|
%
|
|
27.1
|
%
|
Marketing
|
114.8
|
|
|
3.2
|
%
|
|
2.4
|
%
|
|
115.4
|
|
|
3.1
|
%
|
|
2.3
|
%
|
|
112.1
|
|
|
2.9
|
%
|
|
2.2
|
%
|
Property, office and technology
|
325.7
|
|
|
9.2
|
%
|
|
6.9
|
%
|
|
312.0
|
|
|
8.3
|
%
|
|
6.1
|
%
|
|
336.4
|
|
|
8.7
|
%
|
|
6.5
|
%
|
General and administrative
|
331.5
|
|
|
9.4
|
%
|
|
7.0
|
%
|
|
361.7
|
|
|
9.7
|
%
|
|
7.1
|
%
|
|
396.5
|
|
|
10.3
|
%
|
|
7.7
|
%
|
Total operating expenses
|
3,558.0
|
|
|
100.0
|
%
|
|
75.2
|
%
|
|
3,764.5
|
|
|
100.0
|
%
|
|
73.5
|
%
|
|
3,870.2
|
|
|
100.0
|
%
|
|
75.2
|
%
|
|
|
|
|
|
|
|
Variance
|
|||||||||||||
|
Years ended December 31,
|
|
2016 vs 2015
|
|
2015 vs 2014
|
|||||||||||||||
$ in millions
|
2016
|
|
2015
|
|
2014
|
|
$ Change
|
|
% Change
|
|
$ Change
|
|
% Change
|
|||||||
Equity in earnings of unconsolidated affiliates
|
9.3
|
|
|
35.1
|
|
|
32.8
|
|
|
(25.8
|
)
|
|
(73.5
|
)%
|
|
2.3
|
|
|
7.0
|
%
|
Interest and dividend income
|
12.2
|
|
|
13.0
|
|
|
13.1
|
|
|
(0.8
|
)
|
|
(6.2
|
)%
|
|
(0.1
|
)
|
|
(0.8
|
)%
|
Interest expense
|
(93.4
|
)
|
|
(81.7
|
)
|
|
(73.1
|
)
|
|
(11.7
|
)
|
|
14.3
|
%
|
|
(8.6
|
)
|
|
11.8
|
%
|
Other gains and losses, net
|
22.9
|
|
|
(1.5
|
)
|
|
28.1
|
|
|
24.4
|
|
|
N/A
|
|
|
(29.6
|
)
|
|
N/A
|
|
Other income/(expense) of CIP, net
|
79.2
|
|
|
27.1
|
|
|
93.0
|
|
|
52.1
|
|
|
192.3
|
%
|
|
(65.9
|
)
|
|
(70.9
|
)%
|
Other income/(expense) of CSIP, net
|
—
|
|
|
11.7
|
|
|
24.3
|
|
|
(11.7
|
)
|
|
(100.0
|
)%
|
|
(12.6
|
)
|
|
(51.9
|
)%
|
Total other income and expenses
|
30.2
|
|
|
3.7
|
|
|
118.2
|
|
|
26.5
|
|
|
716.2
|
%
|
|
(114.5
|
)
|
|
(96.9
|
)%
|
$ in millions
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|
2012
|
|||||
Operating revenues, U.S. GAAP basis
|
4,734.4
|
|
|
5,122.9
|
|
|
5,147.1
|
|
|
4,644.6
|
|
|
4,050.4
|
|
Proportional share of revenues, net of third-party distribution expenses, from joint venture investments
(1)
|
43.7
|
|
|
61.0
|
|
|
56.7
|
|
|
51.7
|
|
|
37.5
|
|
Third party distribution, service and advisory expenses
(2)
|
(1,407.2
|
)
|
|
(1,579.9
|
)
|
|
(1,630.7
|
)
|
|
(1,489.2
|
)
|
|
(1,308.2
|
)
|
CIP
(3)
|
22.3
|
|
|
39.2
|
|
|
35.2
|
|
|
37.9
|
|
|
41.0
|
|
Other reconciling items
(6)
|
—
|
|
|
—
|
|
|
—
|
|
|
7.0
|
|
|
15.3
|
|
Net revenues
|
3,393.2
|
|
|
3,643.2
|
|
|
3,608.3
|
|
|
3,252.0
|
|
|
2,836.0
|
|
$ in millions
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|
2012
|
|||||
Operating income, U.S. GAAP basis
|
1,176.4
|
|
|
1,358.4
|
|
|
1,276.9
|
|
|
1,120.2
|
|
|
842.6
|
|
Proportional share of net operating income from joint venture investments
(1)
|
15.9
|
|
|
27.4
|
|
|
25.9
|
|
|
21.3
|
|
|
15.7
|
|
CIP
(3)
|
51.0
|
|
|
63.2
|
|
|
69.8
|
|
|
73.0
|
|
|
72.5
|
|
Business combinations
(4)
|
22.3
|
|
|
12.8
|
|
|
12.6
|
|
|
23.0
|
|
|
31.4
|
|
Compensation expense related to market valuation changes in deferred compensation plans
(5)
|
8.1
|
|
|
4.3
|
|
|
11.5
|
|
|
25.1
|
|
|
14.3
|
|
Other reconciling items
(6)
|
39.1
|
|
|
27.6
|
|
|
98.3
|
|
|
29.5
|
|
|
35.6
|
|
Adjusted operating income
|
1,312.8
|
|
|
1,493.7
|
|
|
1,495.0
|
|
|
1,292.1
|
|
|
1,012.1
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Operating margin*
|
24.8
|
%
|
|
26.5
|
%
|
|
24.8
|
%
|
|
24.1
|
%
|
|
20.8
|
%
|
Adjusted operating margin**
|
38.7
|
%
|
|
41.0
|
%
|
|
41.4
|
%
|
|
39.7
|
%
|
|
35.7
|
%
|
$ in millions, except per share data
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|
2012
|
||||||||||
Net income attributable to Invesco Ltd., U.S. GAAP basis
|
854.2
|
|
|
968.1
|
|
|
988.1
|
|
|
940.3
|
|
|
677.1
|
|
|||||
CIP, eliminated upon consolidation
(3)
|
(3.0
|
)
|
|
40.4
|
|
|
(7.8
|
)
|
|
8.7
|
|
|
10.7
|
|
|||||
Business combinations, net of tax
(4)
|
59.5
|
|
|
14.0
|
|
|
36.2
|
|
|
(23.8
|
)
|
|
21.9
|
|
|||||
Deferred compensation plan market valuation changes and dividend income less compensation expense, net of tax
(5)
|
(2.5
|
)
|
|
5.9
|
|
|
(0.3
|
)
|
|
(12.6
|
)
|
|
(7.4
|
)
|
|||||
Other reconciling items, net of tax
(6)
|
15.9
|
|
|
20.3
|
|
|
78.6
|
|
|
40.7
|
|
|
46.3
|
|
|||||
Adjusted net income attributable to Invesco Ltd.***
|
924.1
|
|
|
1,048.7
|
|
|
1,094.8
|
|
|
953.3
|
|
|
748.6
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Average shares outstanding - diluted
|
415.0
|
|
|
429.3
|
|
|
435.6
|
|
|
448.5
|
|
|
453.8
|
|
|||||
Diluted EPS
|
|
$2.06
|
|
|
|
$2.26
|
|
|
|
$2.27
|
|
|
|
$2.10
|
|
|
|
$1.49
|
|
Adjusted diluted EPS****
|
|
$2.23
|
|
|
|
$2.44
|
|
|
|
$2.51
|
|
|
|
$2.13
|
|
|
|
$1.65
|
|
*
|
Operating margin is equal to operating income divided by operating revenues.
|
**
|
Adjusted operating margin is equal to adjusted operating income divided by net revenues.
|
(1)
|
Proportional share of net revenues and operating income from joint venture investments
|
(2)
|
Third-party distribution, service and advisory expenses
|
(3)
|
CIP
|
|
Year ended December 31,
|
|||||||||||||
$ in millions, except per share data
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|
2012
|
|||||
Management fees earned from CIP, eliminated upon consolidation
|
20.8
|
|
|
30.7
|
|
|
26.7
|
|
|
27.0
|
|
|
38.6
|
|
Performance fees earned from CIP, eliminated upon consolidation
|
1.5
|
|
|
8.5
|
|
|
9.1
|
|
|
11.3
|
|
|
2.4
|
|
Other revenues recorded by CIP
|
—
|
|
|
—
|
|
|
(0.6
|
)
|
|
(0.4
|
)
|
|
—
|
|
CIP related adjustments in arriving at net revenues
|
22.3
|
|
|
39.2
|
|
|
35.2
|
|
|
37.9
|
|
|
41.0
|
|
(4)
|
Business combination related adjustments
|
$ in millions
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|
2012
|
|||||
Business combination related:
|
|
|
|
|
|
|
|
|
|
|||||
Employee compensation expense
(a)
|
7.0
|
|
|
—
|
|
|
—
|
|
|
2.4
|
|
|
—
|
|
Transaction and integration expense
(b)
|
—
|
|
|
—
|
|
|
—
|
|
|
3.2
|
|
|
8.2
|
|
Intangible amortization expense
(c)
|
13.9
|
|
|
10.6
|
|
|
12.6
|
|
|
15.4
|
|
|
25.5
|
|
Change in contingent consideration estimates
(d)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2.3
|
)
|
Other business combination-related adjustments
(e)
|
1.4
|
|
|
2.2
|
|
|
—
|
|
|
2.0
|
|
|
—
|
|
Adjustments to operating income
|
22.3
|
|
|
12.8
|
|
|
12.6
|
|
|
23.0
|
|
|
31.4
|
|
Gain on sale of CLO management contracts
(f)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(8.3
|
)
|
Change in contingent consideration estimates
(d)
|
7.4
|
|
|
(27.1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
Other-than-temporary impairment
(g)
|
17.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Taxation:
|
|
|
|
|
|
|
|
|
|
|||||
Taxation on transaction and integration
(b)
|
—
|
|
|
—
|
|
|
—
|
|
|
(1.3
|
)
|
|
(3.1
|
)
|
Taxation on amortization
(c)
|
(1.3
|
)
|
|
(1.5
|
)
|
|
(1.6
|
)
|
|
(1.5
|
)
|
|
(2.6
|
)
|
Deferred taxation
(h)
|
19.3
|
|
|
20.1
|
|
|
21.8
|
|
|
21.3
|
|
|
20.1
|
|
Taxation on change in contingent consideration estimates
(d)
|
(2.8
|
)
|
|
10.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Taxation on gain on sale of CLO management contracts
(f)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2.5
|
|
Taxation on other business combination-related adjustments
(e)
|
(3.2
|
)
|
|
(0.6
|
)
|
|
—
|
|
|
(0.8
|
)
|
|
—
|
|
(Income)/loss from discontinued operations, net of taxes
(i)
|
—
|
|
|
—
|
|
|
3.4
|
|
|
(64.5
|
)
|
|
(18.1
|
)
|
Adjustments to net income attributable to Invesco Ltd.
|
59.5
|
|
|
14.0
|
|
|
36.2
|
|
|
(23.8
|
)
|
|
21.9
|
|
a.
|
Employee compensation expenses of
$7.0 million
incurred in 2016 are associated with the acquisition of Jemstep, a market-leading provider of advisor-focused digital solutions. Expenses in 2013 are related to employee severance expenses associated with the cessation of activities from a previous acquisition.
|
b.
|
Transaction and integration expenses reflect the legal, regulatory, advisory, valuation, integration-related employee incentive awards, other professional or consulting fees and general and administrative costs, which includes travel costs related to transactions and the costs of temporary staff involved in executing the transaction, and the post-closing costs of integrating the acquired business into the company’s existing operations, including incremental costs associated
|
c.
|
Intangible amortization expense is associated with intangible assets that are identified from acquisition of a business and are amortized on a straight-line basis over useful lives. See Item 8, Financial Statements and Supplementary Data, Note 5 - “Intangible Assets” for detail.
|
d.
|
Changes in contingent consideration estimates of
$2.3 million
in 2012 are associated with a decrease in estimates of contingent earn-out liabilities booked from prior acquisitions. During 2015, the company acquired investment management contracts from Deutsche Bank and the purchase price was solely comprised of contingent considerations payable in future periods. Adjustment to the fair value of contingent consideration liability is an increase of
$7.4 million
in 2016 and a decrease of
$27.1 million
in 2015. See Item 8, Financial Statements and Supplementary Data, Note 2 - “Fair Value of Assets and Liabilities” for detail.
|
e.
|
Other business combination-related adjustments include acquisition and legal costs related to various business combination transactions.
|
f.
|
In 2012, the sale of the management contracts for certain European collateralized loan obligation products (CLOs) resulted in a loss of
$8.3 million
(
$5.8 million
, net of tax).
|
g.
|
Other-than-temporary impairment includes an impairment charge of
$17.8 million
in 2016 that is related to the acquisition of Invesco Asset Management (India) Private Limited.
|
h.
|
Deferred taxation represents tax cash flow benefits resulting from tax amortization of goodwill and indefinite-lived intangible assets, and all related tax effects. While finite-lived intangible assets are amortized under U.S. GAAP, there is no amortization charge on goodwill and indefinite-lived intangibles. In certain qualifying situations, these can be amortized for tax purposes, generally over a 15-year period, as is the case in the U.S. These cash flows (in the form of reduced taxes payable) represent tax benefits that are not included in the Consolidated Statements of Income absent an impairment charge or the disposal of the related business. The company receives these cash flow benefits but does not anticipate a sale or impairment of these assets in the foreseeable future, and therefore the deferred tax liability recognized under U.S. GAAP is not expected to be used either through a credit in the Consolidated Statements of Income or through settlement of tax obligations.
|
i.
|
The results of the discontinued operations of Atlantic Trust have been excluded in arriving at adjusted net income attributable to Invesco Ltd., which is the basis of calculating adjusted diluted EPS. Accordingly, the company's non-GAAP financial measures reflect only the continuing business of Invesco.
|
(5)
|
Market movement on deferred compensation plan liabilities
|
$ in millions
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|
2012
|
|||||
Market movement on deferred compensation plan liabilities:
|
|
|
|
|
|
|
|
|
|
|||||
Compensation expense related to market valuation changes in deferred compensation liability
|
8.1
|
|
|
4.3
|
|
|
11.5
|
|
|
25.1
|
|
|
14.3
|
|
Adjustments to operating income
|
8.1
|
|
|
4.3
|
|
|
11.5
|
|
|
25.1
|
|
|
14.3
|
|
Market valuation changes and dividend income from investments related to deferred compensation plans in other income/(expense)
|
(12.1
|
)
|
|
4.8
|
|
|
(11.2
|
)
|
|
(42.5
|
)
|
|
(24.4
|
)
|
Taxation:
|
|
|
|
|
|
|
|
|
|
|||||
Taxation on deferred compensation plan market valuation changes and dividend income less compensation expense
|
1.5
|
|
|
(3.2
|
)
|
|
(0.6
|
)
|
|
4.8
|
|
|
2.7
|
|
Adjustments to net income attributable to Invesco Ltd.
|
(2.5
|
)
|
|
5.9
|
|
|
(0.3
|
)
|
|
(12.6
|
)
|
|
(7.4
|
)
|
(6)
|
Other reconciling items
|
$ in millions
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|
2012
|
|||||
Other non-GAAP adjustments:
|
|
|
|
|
|
|
|
|
|
|||||
Investment management fees accrual adjustment
(a)
|
—
|
|
|
—
|
|
|
—
|
|
|
4.3
|
|
|
—
|
|
Third party distribution, service and advisory expenses - European infrastructure initiative
(b)
|
—
|
|
|
—
|
|
|
—
|
|
|
2.7
|
|
|
15.3
|
|
Adjustments to net revenues
|
—
|
|
|
—
|
|
|
—
|
|
|
7.0
|
|
|
15.3
|
|
Business optimization charges:
(c)
|
|
|
|
|
|
|
|
|
|
|||||
Employee compensation
|
26.4
|
|
|
12.2
|
|
|
7.2
|
|
|
—
|
|
|
—
|
|
Consulting and temporary labor
|
21.8
|
|
|
2.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Property, office and technology
|
1.7
|
|
|
2.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Vacated property lease charge/(credit)
|
(3.2
|
)
|
|
(6.4
|
)
|
|
33.1
|
|
|
—
|
|
|
—
|
|
Employee benefit plan termination
(d)
|
(8.6
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Regulatory charge
(e)
|
1.0
|
|
|
12.6
|
|
|
31.1
|
|
|
—
|
|
|
—
|
|
Legal fees for regulatory charge
(e)
|
—
|
|
|
0.5
|
|
|
0.5
|
|
|
—
|
|
|
—
|
|
Fund reimbursement expense
(f)
|
—
|
|
|
4.7
|
|
|
31.1
|
|
|
—
|
|
|
—
|
|
U.K. FSCS levy
(g)
|
—
|
|
|
—
|
|
|
(4.7
|
)
|
|
3.0
|
|
|
—
|
|
European infrastructure initiative
(b)
|
—
|
|
|
—
|
|
|
—
|
|
|
7.8
|
|
|
20.3
|
|
Capitalized software development write-off
(h)
|
—
|
|
|
—
|
|
|
—
|
|
|
11.7
|
|
|
—
|
|
Adjustments to operating income
|
39.1
|
|
|
27.6
|
|
|
98.3
|
|
|
29.5
|
|
|
35.6
|
|
Foreign exchange hedge
(i)
|
(14.2
|
)
|
|
1.0
|
|
|
(0.2
|
)
|
|
(0.6
|
)
|
|
0.8
|
|
Payment to an investment trust
(j)
|
—
|
|
|
—
|
|
|
—
|
|
|
31.9
|
|
|
—
|
|
Senior notes call premium
(k)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
23.5
|
|
Taxation:
|
|
|
|
|
|
|
|
|
|
|||||
Taxation on investment management fees accrual adjustment
(a)
|
—
|
|
|
—
|
|
|
—
|
|
|
(1.1
|
)
|
|
—
|
|
Taxation on European infrastructure initiative
(b)
|
—
|
|
|
—
|
|
|
—
|
|
|
(2.1
|
)
|
|
(7.6
|
)
|
Taxation on business optimization charges
(c)
|
(16.2
|
)
|
|
(5.1
|
)
|
|
(2.3
|
)
|
|
—
|
|
|
—
|
|
Taxation on vacated property lease credit
(c)
|
0.7
|
|
|
1.3
|
|
|
(6.4
|
)
|
|
—
|
|
|
—
|
|
Taxation on employee benefit plan termination
(d)
|
3.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Taxation on regulatory-related charges
(e)
|
(1.8
|
)
|
|
(2.7
|
)
|
|
(0.1
|
)
|
|
—
|
|
|
—
|
|
Taxation on fund reimbursement expense
(f)
|
—
|
|
|
(1.8
|
)
|
|
(11.7
|
)
|
|
—
|
|
|
—
|
|
Taxation on U.K. FSCS levy
(g)
|
—
|
|
|
—
|
|
|
1.0
|
|
|
(0.7
|
)
|
|
—
|
|
Taxation on capitalized software development write-off
(h)
|
—
|
|
|
—
|
|
|
—
|
|
|
(4.3
|
)
|
|
—
|
|
Taxation on foreign exchange hedge
(i)
|
5.0
|
|
|
—
|
|
|
—
|
|
|
0.2
|
|
|
(0.2
|
)
|
Taxation on payment to an investment trust
(j)
|
—
|
|
|
—
|
|
|
—
|
|
|
(12.1
|
)
|
|
—
|
|
Taxation on senior notes call premium
(k)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5.8
|
)
|
Adjustments to net income attributable to Invesco Ltd.
|
15.9
|
|
|
20.3
|
|
|
78.6
|
|
|
40.7
|
|
|
46.3
|
|
a.
|
During the year ended December 31, 2013, the company reduced a management fee revenue accrual by $4.3 million to reflect a multi-year true-up. Inclusion of this true-up in the company’s non-GAAP financial information would depress the derived metric of net revenue yield on AUM from continuing operations, an important metric calculated from a non-GAAP financial measure which is often contemplated by users of the company’s financial information to evaluate the company with industry peers. The true-up is not indicative of a trend in future net revenue yield on AUM;
|
b.
|
European infrastructure transformational initiative: The company has outsourced its European transfer agency and has made certain structural changes to product and distribution platforms. Expenses incurred related to the European infrastructure activities are excluded in arriving at the non-GAAP financial information. In connection with the initiative, operational process changes resulted in an accounting adjustment recognizing additional distribution expense in the years ended December 31, 2012 and December 31, 2013.
|
c.
|
Business optimization: Operating expenses for
2016
and 2015 include costs associated with a business transformation initiative that include severance costs of
$26.4 million
, and consulting and temporary labor costs of
$21.8 million
(
2015
:
$12.2 million
and
$2.0 million
, respectively).
|
d.
|
Employee benefit plan termination: Operating expenses for
2016
include an incremental credit of
$8.6 million
related to an employee benefit plan termination.
|
e.
|
General and administrative expenses for
2015
include a provision of
$12.6 million
pertaining to regulatory actions and related legal fees of
$0.5 million
(
2016
:
$1.0 million
). This includes $7.6 million associated with our private equity business.
|
f.
|
General and administrative expenses for
2015
includes a charge of
$4.7 million
(
2014
:
$31.1 million
) in respect of a multi-year fund reimbursement expense associated with historical private equity management fees. The charge resulted primarily from using a more appropriate methodology regarding the calculation of offsets to management fees.
|
g.
|
Included within general and administrative expenses for
2014
is a credit of
$4.7 million
related to the partial refund of a $15.3 million levy in 2010 from the U.K. Financial Services Compensation Scheme. An additional
$3.0 million
charge was recorded in the year ended
December 31, 2013
reflecting revised estimates of the levy.
|
h.
|
Property, office and technology expenses includes a charge of
$11.7 million
in the year ended
December 31, 2013
related to the write-off of capitalized IT software development costs.
|
i.
|
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 and Euro/U.S. Dollar foreign exchange rates. These contracts provide coverage through December 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.
|
j.
|
On
December 31, 2013
, at the time of creating a new trust company subsidiary to continue operating the company’s institutional trust activities immediately following the disposition of Atlantic Trust, the company made a
$31.9 million
payment to a managed investment trust, which resulted in the subsequent termination of an outstanding support agreement. This expense was recorded in other gains/(losses) in the company’s Consolidated Statement of Income during the year ended December 31, 2013.
|
k.
|
Other gains and losses, net included a charge of $23.5 million in the year ended December 31, 2012 related to the call premiums on the redemption of the $333.5 million principal amount of 5.375% senior notes due February 27, 2013 and the $197.1 million principal amount of the 5.375% senior notes due December 15, 2014.
|
•
|
reinvestment in the business;
|
•
|
moderate annual growth of dividends (as further discussed in the "Dividends" section below);
|
•
|
share repurchase; and
|
•
|
establishment of an approximate $1 billion cash buffer in excess of European regulatory and liquidity requirements.
|
|
December 31, 2016
|
|
December 31, 2015
|
|
December 31, 2014
|
||||||||||||
$ in millions
|
Impact of CIP
|
|
Invesco Ltd. Consolidated
|
|
Impact of CIP
|
|
Invesco Ltd. Consolidated
|
|
Impact of CIP
|
|
Invesco Ltd. Consolidated
|
||||||
Operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net income/(loss)
|
17.1
|
|
|
868.3
|
|
|
(46.1
|
)
|
|
964.1
|
|
|
11.1
|
|
|
1,001.1
|
|
Adjustments to reconcile net income to net cash provided by/(used in) operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Amortization and depreciation
|
—
|
|
|
101.2
|
|
|
—
|
|
|
93.6
|
|
|
—
|
|
|
89.4
|
|
Share-based compensation expense
|
—
|
|
|
159.7
|
|
|
—
|
|
|
150.3
|
|
|
—
|
|
|
138.0
|
|
Other gains and losses, net
|
1.9
|
|
|
(22.9
|
)
|
|
3.9
|
|
|
1.5
|
|
|
4.8
|
|
|
(28.1
|
)
|
Other (gains)/losses of CSIP, net
|
—
|
|
|
—
|
|
|
—
|
|
|
0.8
|
|
|
—
|
|
|
(13.6
|
)
|
Other (gains)/losses of CIP, net
|
(7.4
|
)
|
|
(7.4
|
)
|
|
37.0
|
|
|
37.0
|
|
|
(20.4
|
)
|
|
(20.4
|
)
|
Equity in earnings of unconsolidated affiliates
|
8.9
|
|
|
(9.3
|
)
|
|
1.7
|
|
|
(35.1
|
)
|
|
4.0
|
|
|
(32.8
|
)
|
Dividends from unconsolidated affiliates
|
—
|
|
|
17.6
|
|
|
—
|
|
|
18.7
|
|
|
—
|
|
|
19.6
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
(Increase)/decrease in cash held by CIP
|
(509.4
|
)
|
|
(509.4
|
)
|
|
39.9
|
|
|
39.9
|
|
|
148.5
|
|
|
148.5
|
|
(Increase)/decrease in cash held by CSIP
|
—
|
|
|
—
|
|
|
—
|
|
|
(10.5
|
)
|
|
—
|
|
|
1.3
|
|
(Purchase)/sale of investments by CIP
|
(487.2
|
)
|
|
(487.2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
(Purchase)/sale of trading investments, net
|
167.7
|
|
|
7.0
|
|
|
—
|
|
|
(159.0
|
)
|
|
—
|
|
|
(2.7
|
)
|
(Increase)/decrease in receivables
|
116.6
|
|
|
(3,392.2
|
)
|
|
(17.0
|
)
|
|
(4,489.9
|
)
|
|
(21.4
|
)
|
|
(265.8
|
)
|
Increase/(decrease) in payables
|
(22.4
|
)
|
|
3,403.9
|
|
|
3.7
|
|
|
4,442.1
|
|
|
(2.3
|
)
|
|
165.9
|
|
Net cash provided by/(used in) operating activities
|
(714.2
|
)
|
|
129.3
|
|
|
23.1
|
|
|
1,053.5
|
|
|
124.3
|
|
|
1,200.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Purchase of property, equipment and software
|
—
|
|
|
(147.7
|
)
|
|
—
|
|
|
(124.5
|
)
|
|
—
|
|
|
(133.2
|
)
|
Purchase of available-for-sale investments
|
10.1
|
|
|
(25.9
|
)
|
|
63.3
|
|
|
(44.9
|
)
|
|
88.5
|
|
|
(113.8
|
)
|
Sale of available-for-sale investments
|
(8.1
|
)
|
|
59.3
|
|
|
(62.3
|
)
|
|
51.1
|
|
|
(66.2
|
)
|
|
102.8
|
|
Purchase of investments by CIP
|
(3,713.6
|
)
|
|
(3,713.6
|
)
|
|
(4,080.7
|
)
|
|
(4,080.7
|
)
|
|
(5,565.9
|
)
|
|
(5,565.9
|
)
|
Sale of investments by CIP
|
2,958.1
|
|
|
2,958.1
|
|
|
3,543.2
|
|
|
3,543.2
|
|
|
4,022.9
|
|
|
4,022.9
|
|
Purchase of investments by CSIP
|
—
|
|
|
—
|
|
|
—
|
|
|
(527.5
|
)
|
|
—
|
|
|
(683.4
|
)
|
Sale of investments by CSIP
|
—
|
|
|
—
|
|
|
—
|
|
|
524.2
|
|
|
—
|
|
|
493.6
|
|
Purchase of other investments
|
88.2
|
|
|
(125.4
|
)
|
|
1.7
|
|
|
(167.8
|
)
|
|
3.7
|
|
|
(123.2
|
)
|
Sale of other investments
|
(65.0
|
)
|
|
87.9
|
|
|
—
|
|
|
111.6
|
|
|
—
|
|
|
73.7
|
|
Returns of capital and distributions from unconsolidated partnership investments
|
(7.1
|
)
|
|
38.6
|
|
|
(0.5
|
)
|
|
50.5
|
|
|
(3.0
|
)
|
|
38.5
|
|
Acquisition earn-out payments
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Purchase of business
|
—
|
|
|
(121.9
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Sale of business
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
60.8
|
|
Net cash provided by/(used in) investing activities
|
(737.4
|
)
|
|
(990.6
|
)
|
|
(535.3
|
)
|
|
(664.8
|
)
|
|
(1,520.0
|
)
|
|
(1,827.2
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Proceeds from exercises of share options
|
—
|
|
|
—
|
|
|
—
|
|
|
3.7
|
|
|
—
|
|
|
11.0
|
|
Purchases of treasury shares
|
—
|
|
|
(535.0
|
)
|
|
—
|
|
|
(548.8
|
)
|
|
—
|
|
|
(269.6
|
)
|
Dividends paid
|
—
|
|
|
(460.4
|
)
|
|
—
|
|
|
(454.5
|
)
|
|
—
|
|
|
(424.0
|
)
|
Excess tax benefits from share-based compensation
|
—
|
|
|
(1.7
|
)
|
|
—
|
|
|
21.2
|
|
|
—
|
|
|
24.0
|
|
Repayment of unsettled fund account
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(35.7
|
)
|
Third-party capital invested into CIP
|
386.7
|
|
|
386.7
|
|
|
113.5
|
|
|
113.5
|
|
|
287.0
|
|
|
287.0
|
|
Third-party capital distributed by CIP
|
(91.5
|
)
|
|
(91.5
|
)
|
|
(120.0
|
)
|
|
(120.0
|
)
|
|
(165.8
|
)
|
|
(165.8
|
)
|
Third-party capital invested into CSIP
|
—
|
|
|
—
|
|
|
—
|
|
|
31.2
|
|
|
—
|
|
|
167.1
|
|
Third-party capital distributed by CSIP
|
—
|
|
|
—
|
|
|
—
|
|
|
(25.9
|
)
|
|
—
|
|
|
(6.0
|
)
|
Borrowings of debt of CIP
|
1,327.9
|
|
|
1,327.9
|
|
|
2,091.8
|
|
|
2,091.8
|
|
|
1,996.3
|
|
|
1,996.3
|
|
Repayments of debt of CIP
|
(171.5
|
)
|
|
(171.5
|
)
|
|
(1,573.1
|
)
|
|
(1,573.1
|
)
|
|
(721.8
|
)
|
|
(721.8
|
)
|
Net borrowings/(repayments) under credit facility
|
—
|
|
|
28.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Proceeds from issuance of senior notes
|
—
|
|
|
—
|
|
|
—
|
|
|
495.5
|
|
|
—
|
|
|
—
|
|
Payment of contingent consideration
|
—
|
|
|
(13.1
|
)
|
|
—
|
|
|
(11.3
|
)
|
|
—
|
|
|
—
|
|
Net cash provided by/(used in) financing activities
|
1,451.6
|
|
|
470.1
|
|
|
512.2
|
|
|
23.3
|
|
|
1,395.7
|
|
|
862.5
|
|
Increase/(decrease) in cash and cash equivalents
|
—
|
|
|
(391.2
|
)
|
|
—
|
|
|
412.0
|
|
|
—
|
|
|
235.7
|
|
Foreign exchange movement on cash and cash equivalents
|
—
|
|
|
(132.2
|
)
|
|
—
|
|
|
(74.8
|
)
|
|
—
|
|
|
(52.7
|
)
|
Cash and cash equivalents, beginning of year
|
—
|
|
|
1,851.4
|
|
|
—
|
|
|
1,514.2
|
|
|
—
|
|
|
1,331.2
|
|
Cash and cash equivalents, end of year
|
—
|
|
|
1,328.0
|
|
|
—
|
|
|
1,851.4
|
|
|
—
|
|
|
1,514.2
|
|
$ in millions
|
December 31, 2016
|
|
December 31, 2015
|
||
Floating rate credit facility expiring August 7, 2020
|
28.7
|
|
|
—
|
|
Unsecured Senior Notes:
|
|
|
|
||
$600 million 3.125% - due November 30, 2022
|
596.3
|
|
|
596.1
|
|
$600 million 4.000% - due January 30, 2024
|
593.2
|
|
|
592.7
|
|
$500 million 3.750% -- due January 15, 2026
|
494.5
|
|
|
494.2
|
|
$400 million 5.375% - due November 30, 2043
|
389.7
|
|
|
389.8
|
|
Long-term debt
|
2,102.4
|
|
|
2,072.8
|
|
|
Last four quarters ended
|
||||||
$ millions
|
December 31, 2016
|
|
December 31, 2015
|
||||
Net income attributable to Invesco Ltd.
|
854.2
|
|
|
968.1
|
|
||
Impact of CIP on net income attributable to Invesco Ltd.
|
(3.0
|
)
|
|
40.4
|
|
||
Tax expense
|
338.3
|
|
|
398.0
|
|
||
Amortization/depreciation/impairment
|
101.2
|
|
|
93.6
|
|
||
Interest expense
|
93.4
|
|
|
81.7
|
|
||
Share-based compensation expense
|
159.7
|
|
|
150.3
|
|
||
Unrealized (gains)/losses from investments, net
*
|
15.1
|
|
|
(7.5
|
)
|
||
EBITDA
**
|
1,558.9
|
|
|
1,724.6
|
|
||
Adjusted debt
**
|
|
$2,111.9
|
|
|
|
$2,086.6
|
|
Leverage ratio (Debt/EBITDA - maximum 3.25:1.00)
|
1.35
|
|
|
1.21
|
|
||
Interest coverage (EBITDA/Interest Expense - minimum 4.00:1.00)
|
16.69
|
|
|
21.11
|
|
*
|
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
$2,102.4 million
plus
$9.5 million
in letters of credit.
|
•
|
All cash and cash equivalent balances are subject to credit risk, as they represent deposits made by the company with external banks and other institutions. As of
December 31, 2016
, our maximum exposure to credit risk related to our cash and cash equivalent balances is
$1,328.0 million
. See Item 8, Financial Statements and Supplementary Data - Note
21
, “Related Parties,” for information regarding cash and cash equivalents invested in affiliated money market funds.
|
$ in millions
|
Total
(4,5,6)
|
|
Within 1 Year
|
|
1-3 Years
|
|
3-5 Years
|
|
More Than 5 Years
|
|||||
Long-term debt
(1)
|
2,102.4
|
|
|
—
|
|
|
—
|
|
|
28.7
|
|
|
2,073.7
|
|
Estimated interest payments on long-term debt
(1)
|
1,059.8
|
|
|
88.8
|
|
|
168.2
|
|
|
166.7
|
|
|
636.1
|
|
Operating leases
(2)
|
349.6
|
|
|
54.5
|
|
|
107.7
|
|
|
89.4
|
|
|
98.0
|
|
Purchase obligations
(3)
|
301.4
|
|
|
116.8
|
|
|
92.0
|
|
|
47.7
|
|
|
44.9
|
|
Total
|
3,813.2
|
|
|
260.1
|
|
|
367.9
|
|
|
332.5
|
|
|
2,852.7
|
|
(1)
|
Long-term debt includes
$2,073.7 million
of fixed rate debt. Fixed interest payments are reflected in the table above in the periods they are due, and include any issuance discounts. The table above includes the company's debt; debt of CIP is excluded from the table above, as the company is not obligated for these amounts. See Item 8, Financial Statements and Supplementary Data - Note
20
, “Consolidated Investment Products," for additional information.
|
(2)
|
Operating leases reflect obligations for leased building space and other assets. See Item 8, Financial Statements and Supplementary Data - Note
13
, “Operating Leases” for sublease information.
|
(3)
|
In the ordinary course of business, Invesco enters into contracts or purchase obligations with third parties whereby the third parties provide services to or on behalf of Invesco. Purchase obligations included in the contractual obligations table above represent fixed-price contracts, which are either non-cancelable or cancelable with a penalty. At
December 31, 2016
, the company's obligations primarily reflect standard service contracts for portfolio, market data, office-related services and third-party marketing and promotional services. In addition, the company is a party to certain variable-price contractual arrangements (e.g. contingent future payments based on AUM levels, number of accounts, transaction volume, etc.) for which the company is reimbursed by affiliated funds and as such are not included in the table above. Purchase obligations are recorded as liabilities in the company's Consolidated Financial Statements when services are provided. Purchase obligations also include contingent consideration liabilities.
|
(4)
|
The company has capital commitments into co-invested funds that are to be drawn down over the life of the partnership as investment opportunities are identified. At
December 31, 2016
, the company's undrawn capital and purchase commitments were
$204.1 million
. These are not included in the above table. See Item 8, Financial Statements and Supplementary Data - Note
18
, “Commitments and Contingencies” for additional details.
|
(5)
|
Due to the uncertainty with respect to the timing of future cash flows associated with unrecognized tax benefits at
December 31, 2016
, the company is unable to make reasonably reliable estimates of the period of cash settlement with the respective taxing authorities. Therefore,
$10.5 million
of gross unrecognized tax benefits have been excluded from the contractual obligations table above. See Item 8, Financial Statements and Supplementary Data, Note
15
- “Taxation” for a discussion regarding income taxes.
|
(6)
|
In addition to the contractual obligations in the table above, we periodically make contributions to defined benefit pension and postretirement medical plans. For the years ended
December 31, 2016
and
2015
we contributed
$14.2 million
and
$15.5 million
, respectively, to these plans. In 2017, we expect to contribute
$11.2 million
to our defined benefit pension plans and
none
to our postretirement medical plan. See Item 8, Financial Statements and Supplementary Data - Note
12
, “Retirement Benefit Plans” for detailed benefit pension and postretirement plan information. The company has various other compensation and benefit obligations, including bonuses, commissions and incentive payments payable, defined contribution plan matching contribution obligations, and deferred compensation arrangements, that are excluded from the table above.
|
•
|
The probability that the company will be unable to collect all amounts due according to the contractual terms of a debt security not impaired at acquisition;
|
•
|
The length of time and the extent to which the market value has been less than cost;
|
•
|
The financial condition and near-term prospects of the issuer, including any specific events which may influence the operations of the issuer;
|
•
|
The intent and ability of the company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in market value;
|
•
|
The decline in the security's value due to an increase in market interest rates or a change in foreign exchange rates since acquisition;
|
•
|
Determination that the security is not realizable; or
|
•
|
An adverse change in estimated cash flows of a beneficial interest.
|
•
|
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.
|
|
December 31, 2016
|
|||||||
$ in millions
|
Fair Value
|
|
Fair Value assuming 10% increase
|
|
Fair Value assuming 10% decrease
|
|||
Available-for-sale investments
(a)
|
154.0
|
|
|
169.4
|
|
|
138.6
|
|
Trading investments
(b)
|
329.6
|
|
|
362.6
|
|
|
296.6
|
|
Total assets measured at fair value exposed to market risk
|
483.6
|
|
|
532.0
|
|
|
435.2
|
|
|
|
|
|
|
|
|||
Direct investments in CIP
(c)
|
498.1
|
|
|
547.9
|
|
|
448.3
|
|
|
|
|
|
|
|
|||
Contingent consideration liability
(d)
|
(78.2
|
)
|
|
(86.0
|
)
|
|
(70.4
|
)
|
a.
|
Any gains or losses arising from changes in the fair value of available-for-sale investments are recognized in accumulated other comprehensive income, net of tax, until the investment is sold or otherwise disposed of, or if the investment is determined to be other-than-temporarily impaired, at which time the cumulative gain or loss previously reported in equity is included in income. The company evaluates the carrying value of investments for impairment on a quarterly basis. In its impairment analysis, the company takes into consideration numerous criteria, including the duration and extent of any decline in fair value, and the intent and ability of the company to hold the security for a period of time sufficient for a recovery in value. If the decline in value is determined to be other-than-temporary, the carrying value of the security is generally written down to fair value through the Consolidated Statement of Income. If such a 10% decrease in fair values were to occur, it would not result in an other-than-temporary impairment charge that would be material to our pre-tax earnings.
|
b.
|
If such a 10% increase or decrease in fair values were to occur, the change attributable to
$329.6 million
of these trading investments would result in a corresponding increase or decrease in our pre-tax earnings. At
December 31, 2016
,
$170.5 million
of these trading investments are held to hedge economically certain deferred compensation plans in which the company participates. The company recognizes as compensation expense the appreciation or depreciation of the compensation liability over the award's vesting period in proportion to the vested amount of the award. The company immediately recognizes the appreciation or depreciation of these investments, which is included in other gains and losses. This creates a timing difference between the recognition of the compensation expense and the investment gain or loss impacting net income, which will reverse and will offset to zero over the life of the award at the end of the multi-year vesting period.
|
c.
|
These represent Invesco’s direct investments in investment products that are consolidated. Upon consolidation, these direct investments are eliminated, and the assets and liabilities of the CIP are consolidated in the Consolidated Balance Sheet, together with a noncontrolling interest balance representing the portion of the CIP owned by third parties. If a 10% increase or decrease in the fair values of Invesco’s direct investments in CIP were to occur, it would result in a corresponding increase or decrease in our net income attributable to Invesco Ltd.
|
d.
|
During 2015, the company acquired investment management contracts from Deutsche Bank. This liability represents the purchase price, which was comprised solely of contingent consideration payable in future periods and is linked to future revenues generated from the contracts. The contingent consideration liability was recorded at fair value at the acquisition date and subsequent changes in the fair value are recorded in Other gains and losses, net in the Consolidated Statements of Income. If a 10% increase or decrease in the fair value of the contingent consideration liability were to occur, it would result in a corresponding increase or decrease in our net income attributable to Invesco Ltd.
|
$ in millions
|
December 31, 2016
|
|
December 31, 2015
|
||
Long-term debt
|
|
|
|
||
Fixed rate
|
2,073.7
|
|
|
2,072.8
|
|
Floating rate
|
28.7
|
|
|
—
|
|
Total
|
2,102.4
|
|
|
2,072.8
|
|
|
|
|
|
||
Weighted average interest rate percentage
|
4.0
|
%
|
|
4.0
|
%
|
Weighted average period for which rate is fixed in years
|
11.0
|
|
|
12.0
|
|
|
2016
|
|
2015
|
||||||||||||||||||||||||||||
$ in millions, except per share data
|
Q4
|
|
Q3
|
|
Q2
|
|
Q1
|
|
Q4
|
|
Q3
|
|
Q2
|
|
Q1
|
||||||||||||||||
Operating revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Investment management fees
|
946.9
|
|
|
965.9
|
|
|
946.7
|
|
|
913.6
|
|
|
987.1
|
|
|
1,016.9
|
|
|
1,055.7
|
|
|
1,001.4
|
|
||||||||
Service and distribution fees
|
209.1
|
|
|
213.4
|
|
|
203.4
|
|
|
197.7
|
|
|
207.6
|
|
|
214.8
|
|
|
219.6
|
|
|
213.4
|
|
||||||||
Performance fees
|
17.5
|
|
|
3.4
|
|
|
8.9
|
|
|
14.5
|
|
|
16.8
|
|
|
15.6
|
|
|
6.7
|
|
|
46.8
|
|
||||||||
Other
|
21.2
|
|
|
18.9
|
|
|
30.4
|
|
|
22.9
|
|
|
28.2
|
|
|
26.2
|
|
|
36.1
|
|
|
30.0
|
|
||||||||
Total operating revenues
|
1,194.7
|
|
|
1,201.6
|
|
|
1,189.4
|
|
|
1,148.7
|
|
|
1,239.7
|
|
|
1,273.5
|
|
|
1,318.1
|
|
|
1,291.6
|
|
||||||||
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Third-party distribution, service and advisory
|
349.5
|
|
|
362.1
|
|
|
348.4
|
|
|
347.2
|
|
|
375.2
|
|
|
392.3
|
|
|
413.3
|
|
|
399.1
|
|
||||||||
Employee compensation
|
339.0
|
|
|
345.1
|
|
|
350.3
|
|
|
344.4
|
|
|
349.8
|
|
|
337.6
|
|
|
347.2
|
|
|
360.9
|
|
||||||||
Marketing
|
35.2
|
|
|
26.4
|
|
|
28.3
|
|
|
24.9
|
|
|
34.1
|
|
|
24.9
|
|
|
29.7
|
|
|
26.7
|
|
||||||||
Property, office and technology
|
85.3
|
|
|
78.2
|
|
|
82.3
|
|
|
79.9
|
|
|
81.3
|
|
|
79.0
|
|
|
74.8
|
|
|
76.9
|
|
||||||||
General and administrative
|
91.5
|
|
|
83.5
|
|
|
78.6
|
|
|
77.9
|
|
|
95.7
|
|
|
87.0
|
|
|
89.1
|
|
|
89.9
|
|
||||||||
Total operating expenses
|
900.5
|
|
|
895.3
|
|
|
887.9
|
|
|
874.3
|
|
|
936.1
|
|
|
920.8
|
|
|
954.1
|
|
|
953.5
|
|
||||||||
Operating income
|
294.2
|
|
|
306.3
|
|
|
301.5
|
|
|
274.4
|
|
|
303.6
|
|
|
352.7
|
|
|
364.0
|
|
|
338.1
|
|
||||||||
Other income/(expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Equity in earnings of unconsolidated affiliates
|
11.4
|
|
|
5.5
|
|
|
4.6
|
|
|
(12.2
|
)
|
|
3.1
|
|
|
8.2
|
|
|
12.0
|
|
|
11.8
|
|
||||||||
Interest and dividend income
|
3.5
|
|
|
2.6
|
|
|
2.5
|
|
|
3.6
|
|
|
5.5
|
|
|
2.4
|
|
|
2.6
|
|
|
2.5
|
|
||||||||
Interest expense
|
(23.5
|
)
|
|
(23.9
|
)
|
|
(22.1
|
)
|
|
(23.9
|
)
|
|
(23.0
|
)
|
|
(20.4
|
)
|
|
(19.6
|
)
|
|
(18.7
|
)
|
||||||||
Other gains and losses, net
|
15.6
|
|
|
16.2
|
|
|
(4.2
|
)
|
|
(4.7
|
)
|
|
3.7
|
|
|
0.9
|
|
|
(8.8
|
)
|
|
2.7
|
|
||||||||
Other income/(expense) of CIP, net
|
9.8
|
|
|
39.0
|
|
|
37.9
|
|
|
(7.5
|
)
|
|
(12.0
|
)
|
|
1.5
|
|
|
(1.9
|
)
|
|
39.5
|
|
||||||||
Other income/(expense) of CSIP, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.8
|
|
|
(3.6
|
)
|
|
5.1
|
|
|
9.4
|
|
||||||||
Income before income taxes
|
311.0
|
|
|
345.7
|
|
|
320.2
|
|
|
229.7
|
|
|
281.7
|
|
|
341.7
|
|
|
353.4
|
|
|
385.3
|
|
||||||||
Income tax provision
|
(92.9
|
)
|
|
(89.8
|
)
|
|
(83.7
|
)
|
|
(71.9
|
)
|
|
(86.9
|
)
|
|
(100.4
|
)
|
|
(109.4
|
)
|
|
(101.3
|
)
|
||||||||
Net income
|
218.1
|
|
|
255.9
|
|
|
236.5
|
|
|
157.8
|
|
|
194.8
|
|
|
241.3
|
|
|
244.0
|
|
|
284.0
|
|
||||||||
Net (income)/loss attributable to noncontrolling interests in consolidated entities
|
8.4
|
|
|
(14.7
|
)
|
|
(11.0
|
)
|
|
3.2
|
|
|
7.1
|
|
|
8.0
|
|
|
13.3
|
|
|
(24.4
|
)
|
||||||||
Net income attributable to Invesco Ltd.
|
226.5
|
|
|
241.2
|
|
|
225.5
|
|
|
161.0
|
|
|
201.9
|
|
|
249.3
|
|
|
257.3
|
|
|
259.6
|
|
||||||||
Earnings per share*:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
-basic
|
|
$0.55
|
|
|
|
$0.58
|
|
|
|
$0.54
|
|
|
|
$0.38
|
|
|
|
$0.48
|
|
|
|
$0.58
|
|
|
|
$0.60
|
|
|
|
$0.60
|
|
-diluted
|
|
$0.55
|
|
|
|
$0.58
|
|
|
|
$0.54
|
|
|
|
$0.38
|
|
|
|
$0.48
|
|
|
|
$0.58
|
|
|
|
$0.60
|
|
|
|
$0.60
|
|
Average shares outstanding*:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
- basic
|
408.6
|
|
|
412.6
|
|
|
418.9
|
|
|
418.7
|
|
|
422.9
|
|
|
428.8
|
|
|
431.9
|
|
|
432.2
|
|
||||||||
- diluted
|
409.0
|
|
|
412.9
|
|
|
419.1
|
|
|
418.9
|
|
|
423.2
|
|
|
429.1
|
|
|
432.2
|
|
|
432.5
|
|
||||||||
Dividends declared per share:
|
|
$0.2800
|
|
|
|
$0.2800
|
|
|
|
$0.2800
|
|
|
|
$0.2700
|
|
|
|
$0.2700
|
|
|
|
$0.2700
|
|
|
|
$0.2700
|
|
|
|
$0.2500
|
|
*
|
The sum of the quarterly earnings per share amounts may differ from the annual earnings per share amounts due to the required method of computing the weighted average number of shares in interim periods.
|
|
As of
|
||||
$ in millions, except per share data
|
December 31, 2016
|
|
December 31, 2015
|
||
ASSETS
|
|
|
|
||
Cash and cash equivalents
|
1,328.0
|
|
|
1,851.4
|
|
Unsettled fund receivables
|
672.9
|
|
|
566.3
|
|
Accounts receivable
|
544.2
|
|
|
528.1
|
|
Investments
|
795.3
|
|
|
1,019.1
|
|
Assets of consolidated sponsored investment products (CSIP)
|
—
|
|
|
319.1
|
|
Assets of consolidated investment products (CIP):
|
|
|
|
||
Cash and cash equivalents of CIP
|
742.2
|
|
|
363.3
|
|
Accounts receivable and other assets of CIP
|
106.2
|
|
|
173.5
|
|
Investments of CIP
|
5,116.1
|
|
|
6,016.1
|
|
Assets held for policyholders
|
8,224.2
|
|
|
6,051.5
|
|
Prepaid assets
|
116.9
|
|
|
121.2
|
|
Other assets
|
95.0
|
|
|
107.0
|
|
Property, equipment and software, net
|
464.7
|
|
|
426.9
|
|
Intangible assets, net
|
1,399.4
|
|
|
1,354.0
|
|
Goodwill
|
6,129.2
|
|
|
6,175.7
|
|
Total assets
|
25,734.3
|
|
|
25,073.2
|
|
LIABILITIES
|
|
|
|
||
Accrued compensation and benefits
|
654.3
|
|
|
661.3
|
|
Accounts payable and accrued expenses
|
812.4
|
|
|
863.1
|
|
Liabilities of CIP:
|
|
|
|
||
Debt of CIP
|
4,403.1
|
|
|
5,437.0
|
|
Other liabilities of CIP
|
673.4
|
|
|
273.7
|
|
Policyholder payables
|
8,224.2
|
|
|
6,051.5
|
|
Unsettled fund payables
|
659.3
|
|
|
561.9
|
|
Long-term debt
|
2,102.4
|
|
|
2,072.8
|
|
Deferred tax liabilities, net
|
309.7
|
|
|
288.9
|
|
Total liabilities
|
17,838.8
|
|
|
16,210.2
|
|
Commitments and contingencies (See Note 18)
|
|
|
|
|
|
TEMPORARY EQUITY
|
|
|
|
||
Redeemable noncontrolling interests in consolidated entities
|
283.7
|
|
|
167.3
|
|
PERMANENT EQUITY
|
|
|
|
||
Equity attributable to Invesco Ltd.:
|
|
|
|
||
Common shares ($0.20 par value; 1,050.0 million authorized; 490.4 million shares issued as of December 31, 2016, and 2015)
|
98.1
|
|
|
98.1
|
|
Additional paid-in-capital
|
6,227.4
|
|
|
6,197.7
|
|
Treasury shares
|
(2,845.8
|
)
|
|
(2,404.1
|
)
|
Retained earnings
|
4,833.4
|
|
|
4,439.6
|
|
Accumulated other comprehensive income, net of tax
|
(809.3
|
)
|
|
(446.0
|
)
|
Total equity attributable to Invesco Ltd.
|
7,503.8
|
|
|
7,885.3
|
|
Equity attributable to nonredeemable noncontrolling interests in consolidated entities
|
108.0
|
|
|
810.4
|
|
Total permanent equity
|
7,611.8
|
|
|
8,695.7
|
|
Total liabilities, temporary and permanent equity
|
25,734.3
|
|
|
25,073.2
|
|
|
Years ended December 31,
|
||||||||||
$ in millions, except per share data
|
2016
|
|
2015
|
|
2014
|
||||||
Operating revenues:
|
|
|
|
|
|
||||||
Investment management fees
|
3,773.1
|
|
|
4,061.1
|
|
|
4,054.1
|
|
|||
Service and distribution fees
|
823.6
|
|
|
855.4
|
|
|
893.1
|
|
|||
Performance fees
|
44.3
|
|
|
85.9
|
|
|
61.1
|
|
|||
Other
|
93.4
|
|
|
120.5
|
|
|
138.8
|
|
|||
Total operating revenues
|
4,734.4
|
|
|
5,122.9
|
|
|
5,147.1
|
|
|||
Operating expenses:
|
|
|
|
|
|
||||||
Third-party distribution, service and advisory
|
1,407.2
|
|
|
1,579.9
|
|
|
1,630.7
|
|
|||
Employee compensation
|
1,378.8
|
|
|
1,395.5
|
|
|
1,394.5
|
|
|||
Marketing
|
114.8
|
|
|
115.4
|
|
|
112.1
|
|
|||
Property, office and technology
|
325.7
|
|
|
312.0
|
|
|
336.4
|
|
|||
General and administrative
|
331.5
|
|
|
361.7
|
|
|
396.5
|
|
|||
Total operating expenses
|
3,558.0
|
|
|
3,764.5
|
|
|
3,870.2
|
|
|||
Operating income
|
1,176.4
|
|
|
1,358.4
|
|
|
1,276.9
|
|
|||
Other income/(expense):
|
|
|
|
|
|
||||||
Equity in earnings of unconsolidated affiliates
|
9.3
|
|
|
35.1
|
|
|
32.8
|
|
|||
Interest and dividend income
|
12.2
|
|
|
13.0
|
|
|
13.1
|
|
|||
Interest expense
|
(93.4
|
)
|
|
(81.7
|
)
|
|
(73.1
|
)
|
|||
Other gains and losses, net
|
22.9
|
|
|
(1.5
|
)
|
|
28.1
|
|
|||
Other income/(expense) of CSIP, net
|
—
|
|
|
11.7
|
|
|
24.3
|
|
|||
Other income/(expense) of CIP, net
|
79.2
|
|
|
27.1
|
|
|
93.0
|
|
|||
Income from continuing operations before income taxes
|
1,206.6
|
|
|
1,362.1
|
|
|
1,395.1
|
|
|||
Income tax provision
|
(338.3
|
)
|
|
(398.0
|
)
|
|
(390.6
|
)
|
|||
Income from continuing operations, net of taxes
|
868.3
|
|
|
964.1
|
|
|
1,004.5
|
|
|||
Income/(loss) from discontinued operations, net of taxes
|
—
|
|
|
—
|
|
|
(3.4
|
)
|
|||
Net income
|
868.3
|
|
|
964.1
|
|
|
1,001.1
|
|
|||
Net (income)/loss attributable to noncontrolling interests in consolidated entities
|
(14.1
|
)
|
|
4.0
|
|
|
(13.0
|
)
|
|||
Net income attributable to Invesco Ltd.
|
854.2
|
|
|
968.1
|
|
|
988.1
|
|
|||
Earnings per share:
|
|
|
|
|
|
||||||
Basic:
|
|
|
|
|
|
||||||
Earnings per share from continuing operations
|
|
$2.06
|
|
|
|
$2.26
|
|
|
|
$2.28
|
|
Earnings per share from discontinued operations
|
|
$—
|
|
|
|
$—
|
|
|
|
($0.01
|
)
|
Basic earnings per share
|
|
$2.06
|
|
|
|
$2.26
|
|
|
|
$2.27
|
|
Diluted:
|
|
|
|
|
|
||||||
Earnings per share from continuing operations
|
|
$2.06
|
|
|
|
$2.26
|
|
|
|
$2.28
|
|
Earnings per share from discontinued operations
|
|
$—
|
|
|
|
$—
|
|
|
|
($0.01
|
)
|
Diluted earnings per share
|
|
$2.06
|
|
|
|
$2.26
|
|
|
|
$2.27
|
|
Dividends declared per share
|
|
$1.1100
|
|
|
|
$1.0600
|
|
|
|
$0.9750
|
|
|
Years ended December 31,
|
|||||||
$ in millions
|
2016
|
|
2015
|
|
2014
|
|||
Net income
|
868.3
|
|
|
964.1
|
|
|
1,001.1
|
|
Other comprehensive income/(loss), net of tax:
|
|
|
|
|
|
|||
Currency translation differences on investments in foreign subsidiaries
|
(314.1
|
)
|
|
(493.9
|
)
|
|
(364.4
|
)
|
Actuarial gain/(loss) related to employee benefit plans
|
(39.5
|
)
|
|
11.1
|
|
|
(26.0
|
)
|
Prior service credit/(cost) related to employee benefit plans
|
(3.1
|
)
|
|
—
|
|
|
14.9
|
|
Settlement related to employee benefit plans
|
(5.5
|
)
|
|
—
|
|
|
—
|
|
Reclassification of prior service (credit)/costs into employee compensation expense
|
(7.0
|
)
|
|
(7.2
|
)
|
|
(4.1
|
)
|
Reclassification of actuarial (gains)/losses into employee compensation expense
|
1.5
|
|
|
2.2
|
|
|
1.4
|
|
Share of other comprehensive income/(loss) of equity method investments
|
(1.1
|
)
|
|
(0.6
|
)
|
|
8.3
|
|
Unrealized gains/(losses) on available-for-sale investments
|
5.2
|
|
|
(6.0
|
)
|
|
7.7
|
|
Reclassification of net (gains)/losses realized on available-for-sale investments included in other gains and losses
|
0.3
|
|
|
(0.4
|
)
|
|
(16.9
|
)
|
Other comprehensive income/(loss)
|
(363.3
|
)
|
|
(494.8
|
)
|
|
(379.1
|
)
|
Total comprehensive income/(loss)
|
505.0
|
|
|
469.3
|
|
|
622.0
|
|
Comprehensive (income)/loss attributable to noncontrolling interests in consolidated entities
|
(14.1
|
)
|
|
4.0
|
|
|
(13.0
|
)
|
Comprehensive income attributable to Invesco Ltd.
|
490.9
|
|
|
473.3
|
|
|
609.0
|
|
|
Years ended December 31,
|
|||||||
$ in millions
|
2016
|
|
2015
|
|
2014
|
|||
Operating activities:
|
|
|
|
|
|
|||
Net income
|
868.3
|
|
|
964.1
|
|
|
1,001.1
|
|
Adjustments to reconcile net income to net cash provided by/(used in) operating activities:
|
|
|
|
|
|
|||
Amortization and depreciation
|
101.2
|
|
|
93.6
|
|
|
89.4
|
|
Share-based compensation expense
|
159.7
|
|
|
150.3
|
|
|
138.0
|
|
Other gains and losses, net
|
(22.9
|
)
|
|
1.5
|
|
|
(28.1
|
)
|
Other (gains)/losses of CSIP, net
|
—
|
|
|
0.8
|
|
|
(13.6
|
)
|
Other (gains)/losses of CIP, net
|
(7.4
|
)
|
|
37.0
|
|
|
(20.4
|
)
|
Equity in earnings of unconsolidated affiliates
|
(9.3
|
)
|
|
(35.1
|
)
|
|
(32.8
|
)
|
Dividends from unconsolidated affiliates
|
17.6
|
|
|
18.7
|
|
|
19.6
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|||
(Increase)/decrease in cash held by CIP
|
(509.4
|
)
|
|
39.9
|
|
|
148.5
|
|
(Increase)/decrease in cash held by CSIP
|
—
|
|
|
(10.5
|
)
|
|
1.3
|
|
(Purchase)/sale of investments by CIP
|
(487.2
|
)
|
|
—
|
|
|
—
|
|
(Purchase)/sale of trading investments, net
|
7.0
|
|
|
(159.0
|
)
|
|
(2.7
|
)
|
(Increase)/decrease in receivables
|
(3,392.2
|
)
|
|
(4,489.9
|
)
|
|
(265.8
|
)
|
Increase/(decrease) in payables
|
3,403.9
|
|
|
4,442.1
|
|
|
165.9
|
|
Net cash provided by/(used in) operating activities
|
129.3
|
|
|
1,053.5
|
|
|
1,200.4
|
|
Investing activities:
|
|
|
|
|
|
|||
Purchase of property, equipment and software
|
(147.7
|
)
|
|
(124.5
|
)
|
|
(133.2
|
)
|
Purchase of available-for-sale investments
|
(25.9
|
)
|
|
(44.9
|
)
|
|
(113.8
|
)
|
Sale of available-for-sale investments
|
59.3
|
|
|
51.1
|
|
|
102.8
|
|
Purchase of investments by CIP
|
(3,713.6
|
)
|
|
(4,080.7
|
)
|
|
(5,565.9
|
)
|
Sale of investments by CIP
|
2,958.1
|
|
|
3,543.2
|
|
|
4,022.9
|
|
Purchase of investments by CSIP
|
—
|
|
|
(527.5
|
)
|
|
(683.4
|
)
|
Sale of investments by CSIP
|
—
|
|
|
524.2
|
|
|
493.6
|
|
Purchase of other investments
|
(125.4
|
)
|
|
(167.8
|
)
|
|
(123.2
|
)
|
Sale of other investments
|
87.9
|
|
|
111.6
|
|
|
73.7
|
|
Returns of capital and distributions from unconsolidated partnership investments
|
38.6
|
|
|
50.5
|
|
|
38.5
|
|
Purchase of business
|
(121.9
|
)
|
|
—
|
|
|
—
|
|
Sale of business
|
—
|
|
|
—
|
|
|
60.8
|
|
Net cash provided by/(used in) investing activities
|
(990.6
|
)
|
|
(664.8
|
)
|
|
(1,827.2
|
)
|
Financing activities:
|
|
|
|
|
|
|||
Proceeds from exercises of share options
|
—
|
|
|
3.7
|
|
|
11.0
|
|
Purchases of treasury shares
|
(535.0
|
)
|
|
(548.8
|
)
|
|
(269.6
|
)
|
Dividends paid
|
(460.4
|
)
|
|
(454.5
|
)
|
|
(424.0
|
)
|
Excess tax benefits from share-based compensation
|
(1.7
|
)
|
|
21.2
|
|
|
24.0
|
|
Repayment of unsettled fund account
|
—
|
|
|
—
|
|
|
(35.7
|
)
|
Third-party capital invested into CIP
|
386.7
|
|
|
113.5
|
|
|
287.0
|
|
Third-party capital distributed by CIP
|
(91.5
|
)
|
|
(120.0
|
)
|
|
(165.8
|
)
|
Third-party capital invested into CSIP
|
—
|
|
|
31.2
|
|
|
167.1
|
|
Third-party capital distributed by CSIP
|
—
|
|
|
(25.9
|
)
|
|
(6.0
|
)
|
Borrowings of debt of CIP
|
1,327.9
|
|
|
2,091.8
|
|
|
1,996.3
|
|
Repayments of debt of CIP
|
(171.5
|
)
|
|
(1,573.1
|
)
|
|
(721.8
|
)
|
Net borrowings/(repayments) under credit facility
|
28.7
|
|
|
—
|
|
|
—
|
|
Proceeds from issuance of senior notes
|
—
|
|
|
495.5
|
|
|
—
|
|
Payment of contingent consideration
|
(13.1
|
)
|
|
(11.3
|
)
|
|
—
|
|
Net cash provided by/(used in) financing activities
|
470.1
|
|
|
23.3
|
|
|
862.5
|
|
Increase/(decrease) in cash and cash equivalents
|
(391.2
|
)
|
|
412.0
|
|
|
235.7
|
|
Foreign exchange movement on cash and cash equivalents
|
(132.2
|
)
|
|
(74.8
|
)
|
|
(52.7
|
)
|
Cash and cash equivalents, beginning of year
|
1,851.4
|
|
|
1,514.2
|
|
|
1,331.2
|
|
Cash and cash equivalents, end of year
|
1,328.0
|
|
|
1,851.4
|
|
|
1,514.2
|
|
Supplemental Cash Flow Information:
|
|
|
|
|
|
|||
Interest paid
|
(81.2
|
)
|
|
(67.5
|
)
|
|
(60.7
|
)
|
Interest received
|
5.8
|
|
|
8.8
|
|
|
8.1
|
|
Taxes paid
|
(299.1
|
)
|
|
(388.7
|
)
|
|
(405.6
|
)
|
|
Equity Attributable to Invesco Ltd.
|
|
|
|
|
|
|
|||||||||||||||||||
$ in millions
|
Common Shares
|
|
Additional Paid-in-Capital
|
|
Treasury Shares
|
|
Retained Earnings
|
|
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, 2016
|
98.1
|
|
|
6,197.7
|
|
|
(2,404.1
|
)
|
|
4,439.6
|
|
|
(446.0
|
)
|
|
7,885.3
|
|
|
810.4
|
|
|
8,695.7
|
|
|
167.3
|
|
Adjustment for adoption of ASU 2015-02
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
(733.5
|
)
|
|
(733.5
|
)
|
|
226.6
|
|
|||||
January 1, 2016, as adjusted
|
98.1
|
|
|
6,197.7
|
|
|
(2,404.1
|
)
|
|
4,439.6
|
|
|
(446.0
|
)
|
|
7,885.3
|
|
|
76.9
|
|
|
7,962.2
|
|
|
393.9
|
|
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
854.2
|
|
|
—
|
|
|
854.2
|
|
|
(0.9
|
)
|
|
853.3
|
|
|
15.0
|
|
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(363.3
|
)
|
|
(363.3
|
)
|
|
—
|
|
|
(363.3
|
)
|
|
—
|
|
Change in noncontrolling interests in consolidated entities, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
32.0
|
|
|
32.0
|
|
|
(125.2
|
)
|
Dividends
|
—
|
|
|
—
|
|
|
—
|
|
|
(460.4
|
)
|
|
—
|
|
|
(460.4
|
)
|
|
—
|
|
|
(460.4
|
)
|
|
—
|
|
Employee share plans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Share-based compensation
|
—
|
|
|
159.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
159.7
|
|
|
—
|
|
|
159.7
|
|
|
—
|
|
Vested shares
|
—
|
|
|
(102.3
|
)
|
|
102.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Other share awards
|
—
|
|
|
0.8
|
|
|
6.2
|
|
|
—
|
|
|
—
|
|
|
7.0
|
|
|
—
|
|
|
7.0
|
|
|
—
|
|
Tax impact of share-based payment
|
—
|
|
|
(1.7
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1.7
|
)
|
|
—
|
|
|
(1.7
|
)
|
|
—
|
|
Purchase of shares
|
—
|
|
|
(26.8
|
)
|
|
(550.2
|
)
|
|
—
|
|
|
—
|
|
|
(577.0
|
)
|
|
—
|
|
|
(577.0
|
)
|
|
—
|
|
December 31, 2016
|
98.1
|
|
|
6,227.4
|
|
|
(2,845.8
|
)
|
|
4,833.4
|
|
|
(809.3
|
)
|
|
7,503.8
|
|
|
108.0
|
|
|
7,611.8
|
|
|
283.7
|
|
|
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
|
—
|
|
|
—
|
|
|
—
|
|
|
968.1
|
|
|
—
|
|
|
—
|
|
|
968.1
|
|
|
(2.9
|
)
|
|
965.2
|
|
|
(1.1
|
)
|
Other comprehensive income (loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(494.8
|
)
|
|
(494.8
|
)
|
|
—
|
|
|
(494.8
|
)
|
|
—
|
|
Change in noncontrolling interests in consolidated entities, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
19.5
|
|
|
19.5
|
|
|
2.9
|
|
Dividends
|
—
|
|
|
—
|
|
|
—
|
|
|
(454.5
|
)
|
|
—
|
|
|
—
|
|
|
(454.5
|
)
|
|
—
|
|
|
(454.5
|
)
|
|
—
|
|
Employee share plans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Share-based compensation
|
—
|
|
|
150.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
150.3
|
|
|
—
|
|
|
150.3
|
|
|
—
|
|
Vested shares
|
—
|
|
|
(109.2
|
)
|
|
109.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Exercise of options
|
—
|
|
|
(2.1
|
)
|
|
5.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3.7
|
|
|
—
|
|
|
3.7
|
|
|
—
|
|
Other share awards
|
—
|
|
|
2.7
|
|
|
3.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6.6
|
|
|
—
|
|
|
6.6
|
|
|
—
|
|
Tax impact of share-based payment
|
—
|
|
|
21.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
21.2
|
|
|
—
|
|
|
21.2
|
|
|
—
|
|
Purchase of shares
|
—
|
|
|
1.2
|
|
|
(624.9
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(623.7
|
)
|
|
—
|
|
|
(623.7
|
)
|
|
—
|
|
December 31, 2015
|
98.1
|
|
|
6,197.7
|
|
|
(2,404.1
|
)
|
|
4,439.6
|
|
|
—
|
|
|
(446.0
|
)
|
|
7,885.3
|
|
|
810.4
|
|
|
8,695.7
|
|
|
167.3
|
|
|
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, 2014
|
98.1
|
|
|
6,100.8
|
|
|
(1,700.4
|
)
|
|
3,361.9
|
|
|
104.3
|
|
|
427.9
|
|
|
8,392.6
|
|
|
584.7
|
|
|
8,977.3
|
|
|
—
|
|
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
988.1
|
|
|
—
|
|
|
—
|
|
|
988.1
|
|
|
6.4
|
|
|
994.5
|
|
|
6.6
|
|
Other comprehensive income (loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(379.1
|
)
|
|
(379.1
|
)
|
|
—
|
|
|
(379.1
|
)
|
|
—
|
|
Net income (loss) reclassified to appropriated retained earnings
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(85.7
|
)
|
|
—
|
|
|
(85.7
|
)
|
|
85.7
|
|
|
—
|
|
|
—
|
|
Deconsolidation of CIP
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1.0
|
)
|
|
—
|
|
|
(1.0
|
)
|
|
—
|
|
|
(1.0
|
)
|
|
—
|
|
Change in noncontrolling interests in consolidated entities, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
117.0
|
|
|
117.0
|
|
|
158.9
|
|
Dividends
|
—
|
|
|
—
|
|
|
—
|
|
|
(424.0
|
)
|
|
—
|
|
|
—
|
|
|
(424.0
|
)
|
|
—
|
|
|
(424.0
|
)
|
|
—
|
|
Employee share plans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Share-based compensation
|
—
|
|
|
138.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
138.0
|
|
|
—
|
|
|
138.0
|
|
|
—
|
|
Vested shares
|
—
|
|
|
(123.3
|
)
|
|
123.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Exercise of options
|
—
|
|
|
(8.1
|
)
|
|
19.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11.0
|
|
|
—
|
|
|
11.0
|
|
|
—
|
|
Settlement of ESPP purchases
|
—
|
|
|
2.2
|
|
|
2.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5.0
|
|
|
—
|
|
|
5.0
|
|
|
—
|
|
Tax impact of share-based payment
|
—
|
|
|
24.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
24.0
|
|
|
—
|
|
|
24.0
|
|
|
—
|
|
Purchase of shares
|
—
|
|
|
—
|
|
|
(342.9
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(342.9
|
)
|
|
—
|
|
|
(342.9
|
)
|
|
—
|
|
December 31, 2014
|
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
|
|
•
|
The company consolidated CIP with total assets and liabilities/equity of
$458.5 million
. The company deconsolidated CIP with total assets and total liabilities and equity of
$3,170.6 million
, including CLOs of
$2,366.5 million
.
|
•
|
VOE partnership entities (consolidated private equity and fund-of-fund entities) became VIEs upon the adoption and were deconsolidated, along with certain VIE partnership entities.
|
•
|
The adoption resulted in the consolidation of certain investment products which became VIEs upon adoption and which were not previously consolidated.
|
•
|
The funds consolidated in prior periods as Consolidated Sponsored Investment Products, "CSIP," became VIEs. Accordingly, with effect from January 1, 2016, the consolidation of all VIEs is presented in the aggregate as part of CIP. See Notes 19, “Consolidated Sponsored Investment Products,” and 20, “Consolidated Investment Products.”
|
|
|
|
December 31, 2016
|
|
December 31, 2015
|
||||||||
$ in millions
|
Footnote Reference
|
|
Carrying Value
|
|
Fair Value
|
|
Carrying Value
|
|
Fair Value
|
||||
Cash and cash equivalents
|
1
|
|
1,328.0
|
|
|
1,328.0
|
|
|
1,851.4
|
|
|
1,851.4
|
|
Available-for-sale investments
|
3
|
|
154.0
|
|
|
154.0
|
|
|
233.2
|
|
|
233.2
|
|
Trading investments
|
3
|
|
329.6
|
|
|
329.6
|
|
|
402.7
|
|
|
402.7
|
|
Foreign time deposits
*
|
3
|
|
26.9
|
|
|
26.9
|
|
|
24.7
|
|
|
24.7
|
|
Assets held for policyholders
|
1
|
|
8,224.2
|
|
|
8,224.2
|
|
|
6,051.5
|
|
|
6,051.5
|
|
Policyholder payables *
|
1
|
|
(8,224.2
|
)
|
|
(8,224.2
|
)
|
|
(6,051.5
|
)
|
|
(6,051.5
|
)
|
Put option contracts
|
|
|
21.8
|
|
|
21.8
|
|
|
1.4
|
|
|
1.4
|
|
UIT-related financial instruments sold, not yet purchased
|
|
|
(6.0
|
)
|
|
(6.0
|
)
|
|
(2.5
|
)
|
|
(2.5
|
)
|
Contingent consideration liability
|
|
|
(78.2
|
)
|
|
(78.2
|
)
|
|
(83.9
|
)
|
|
(83.9
|
)
|
Long-term debt
*
|
8
|
|
(2,102.4
|
)
|
|
(2,206.5
|
)
|
|
(2,072.8
|
)
|
|
(2,161.3
|
)
|
*
|
These financial instruments are not measured at fair value on a recurring basis. See the indicated footnotes 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 December 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
|
476.2
|
|
|
476.2
|
|
|
—
|
|
|
—
|
|
Investments:*
|
|
|
|
|
|
|
|
||||
Available-for-sale:
|
|
|
|
|
|
|
|
||||
Seed money
|
127.9
|
|
|
127.9
|
|
|
—
|
|
|
—
|
|
CLOs
|
12.9
|
|
|
—
|
|
|
—
|
|
|
12.9
|
|
Other debt securities
|
13.2
|
|
|
—
|
|
|
—
|
|
|
13.2
|
|
Trading investments:
|
|
|
|
|
|
|
|
||||
Investments related to deferred compensation plans
|
170.5
|
|
|
170.5
|
|
|
—
|
|
|
—
|
|
Seed money
|
121.9
|
|
|
121.9
|
|
|
—
|
|
|
—
|
|
Other equity securities
|
30.4
|
|
|
30.4
|
|
|
—
|
|
|
—
|
|
UIT-related equity and debt securities:
|
|
|
|
|
|
|
|
||||
Corporate equities
|
1.2
|
|
|
1.2
|
|
|
—
|
|
|
—
|
|
UITs
|
5.6
|
|
|
5.6
|
|
|
—
|
|
|
—
|
|
Assets held for policyholders
|
8,224.2
|
|
|
8,224.2
|
|
|
—
|
|
|
—
|
|
Put option contracts
|
21.8
|
|
|
—
|
|
|
21.8
|
|
|
—
|
|
Total
|
9,205.8
|
|
|
9,157.9
|
|
|
21.8
|
|
|
26.1
|
|
Liabilities:
|
|
|
|
|
|
|
|
||||
UIT-related financial instruments sold, not yet purchased:
|
|
|
|
|
|
|
|
||||
Exchange traded funds
|
(5.2
|
)
|
|
(5.2
|
)
|
|
—
|
|
|
—
|
|
US treasury securities
|
(0.8
|
)
|
|
(0.8
|
)
|
|
—
|
|
|
—
|
|
Contingent consideration liability
|
(78.2
|
)
|
|
—
|
|
|
—
|
|
|
(78.2
|
)
|
Total
|
(84.2
|
)
|
|
(6.0
|
)
|
|
—
|
|
|
(78.2
|
)
|
*
|
Foreign time deposits of
$26.9 million
are excluded from this table. Equity and other investments of
$279.0 million
and
$5.8 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:
|
|
|
|
|
|
|
|
|
|
|
|
Exchange traded funds
|
(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 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.
|
|
For the year ended December 31, 2016
|
|
For the year ended December 31, 2015
|
||||||||||||||
$ in millions
|
Contingent Consideration Liability
|
|
CLOs
|
|
Other Debt Securities
|
|
Contingent Consideration Liability
|
|
CLOs
|
|
Other Debt Securities
|
||||||
Beginning balance
|
(83.9
|
)
|
|
1.4
|
|
|
5.9
|
|
|
—
|
|
|
3.4
|
|
|
6.3
|
|
Adjustment for adoption of ASU 2015-02
|
—
|
|
|
11.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Beginning balance, as adjusted
|
(83.9
|
)
|
|
12.9
|
|
|
5.9
|
|
|
—
|
|
|
3.4
|
|
|
6.3
|
|
Purchases/acquisitions
|
—
|
|
|
—
|
|
|
21.4
|
|
|
(119.3
|
)
|
|
—
|
|
|
—
|
|
Returns of capital
|
—
|
|
|
(3.0
|
)
|
|
—
|
|
|
—
|
|
|
(0.1
|
)
|
|
(0.4
|
)
|
Net unrealized gains and losses included in other gains and losses*
|
(7.4
|
)
|
|
—
|
|
|
—
|
|
|
27.1
|
|
|
—
|
|
|
—
|
|
Net unrealized gains and losses included in accumulated other comprehensive income/(loss)
*
|
—
|
|
|
3.0
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
Disposition/settlements
|
13.1
|
|
|
—
|
|
|
(14.1
|
)
|
|
8.3
|
|
|
(2.0
|
)
|
|
—
|
|
Ending balance
|
(78.2
|
)
|
|
12.9
|
|
|
13.2
|
|
|
(83.9
|
)
|
|
1.4
|
|
|
5.9
|
|
*
|
These unrealized gains and losses are attributable to balances still held at the respective year ends.
|
|
2016
|
|
2015
|
|
2014
|
|||||||||||||||||||||
$ in millions
|
Proceeds from Sales
|
|
Gross Realized Gains
|
|
Gross Realized Losses
|
|
Proceeds from Sales
|
|
Gross Realized Gains
|
|
Gross Realized Losses
|
|
Proceeds from Sales
|
|
Gross Realized Gains
|
|
Gross Realized Losses
|
|||||||||
Seed money
|
42.7
|
|
|
1.5
|
|
|
(1.6
|
)
|
|
48.1
|
|
|
2.2
|
|
|
(0.2
|
)
|
|
102.5
|
|
|
13.0
|
|
|
(0.2
|
)
|
CLOs
|
3.0
|
|
|
—
|
|
|
—
|
|
|
2.6
|
|
|
0.5
|
|
|
—
|
|
|
0.3
|
|
|
—
|
|
|
—
|
|
Other debt securities
|
13.6
|
|
|
—
|
|
|
(0.5
|
)
|
|
0.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
59.3
|
|
|
1.5
|
|
|
(2.1
|
)
|
|
51.1
|
|
|
2.7
|
|
|
(0.2
|
)
|
|
102.8
|
|
|
13.0
|
|
|
(0.2
|
)
|
|
December 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
|
127.2
|
|
|
6.8
|
|
|
(6.1
|
)
|
|
127.9
|
|
|
227.6
|
|
|
7.6
|
|
|
(9.3
|
)
|
|
225.9
|
|
CLOs
|
9.2
|
|
|
3.7
|
|
|
—
|
|
|
12.9
|
|
|
1.3
|
|
|
0.1
|
|
|
—
|
|
|
1.4
|
|
Other debt securities
|
13.2
|
|
|
—
|
|
|
—
|
|
|
13.2
|
|
|
5.9
|
|
|
—
|
|
|
—
|
|
|
5.9
|
|
|
149.6
|
|
|
10.5
|
|
|
(6.1
|
)
|
|
154.0
|
|
|
234.8
|
|
|
7.7
|
|
|
(9.3
|
)
|
|
233.2
|
|
|
December 31, 2016
|
|
December 31, 2015
|
||||||||
$ in millions
|
Fair Value
|
|
Gross Unrealized Losses
|
|
Fair Value
|
|
Gross Unrealized Losses
|
||||
Less than 12 months
|
1.9
|
|
|
(0.2
|
)
|
|
93.0
|
|
|
(3.0
|
)
|
12 months or greater
|
56.4
|
|
|
(5.9
|
)
|
|
65.5
|
|
|
(6.3
|
)
|
Total
|
58.3
|
|
|
(6.1
|
)
|
|
158.5
|
|
|
(9.3
|
)
|
|
Available-for-Sale (Fair Value)
|
|
Less than one year
|
13.2
|
|
One to five years
|
1.7
|
|
Five to ten years
|
8.3
|
|
Greater than ten years
|
2.9
|
|
Total available-for-sale
|
26.1
|
|
Name of Company
|
Country of Incorporation
|
|
% Voting Interest Owned
|
Huaneng Invesco WLR (Beijing) Investment Fund Management Company Ltd.
|
China
|
|
50.0%
|
Invesco Great Wall Fund Management Company Limited
|
China
|
|
49.0%
|
Pocztylion - ARKA
|
Poland
|
|
29.3%
|
Name of Company
|
Country of Incorporation
|
|
% Voting Interest Owned
|
VV Immobilien Verwaltungs und Beteiligungs GmbH
|
Germany
|
|
70.0%
|
VV Immobilien Verwaltungs GmbH
|
Germany
|
|
70.0%
|
HVH Immobilien und Beteiligungs GmbH
|
Germany
|
|
70.0%
|
$ in millions
|
December 31, 2016
|
|
December 31, 2015
|
||
Technology and Other Equipment
|
242.3
|
|
|
244.1
|
|
Software
|
467.4
|
|
|
443.0
|
|
Land and Buildings
|
68.2
|
|
|
58.9
|
|
Leasehold Improvements
|
210.9
|
|
|
198.2
|
|
Work in Process
|
117.0
|
|
|
85.8
|
|
Property, Equipment and Software, Gross
|
1,105.8
|
|
|
1,030.0
|
|
Less: Accumulated Depreciation
|
(641.1
|
)
|
|
(603.1
|
)
|
Property, Equipment and Software, Net
|
464.7
|
|
|
426.9
|
|
$ in millions
|
Gross Book Value
|
|
Accumulated Amortization
|
|
Net Book Value
|
|||
December 31, 2016
|
|
|
|
|
|
|||
Management contracts - indefinite-lived
|
1,363.6
|
|
|
N/A
|
|
|
1,363.6
|
|
Management contracts - finite-lived
|
67.7
|
|
|
(56.6
|
)
|
|
11.1
|
|
Customer relationships
|
40.0
|
|
|
(21.9
|
)
|
|
18.1
|
|
Other
|
9.8
|
|
|
(3.2
|
)
|
|
6.6
|
|
Total
|
1,481.1
|
|
|
(81.7
|
)
|
|
1,399.4
|
|
December 31, 2015
|
|
|
|
|
|
|||
Management contracts - indefinite-lived
|
1,313.9
|
|
|
N/A
|
|
|
1,313.9
|
|
Management contracts - finite-lived
|
68.7
|
|
|
(50.1
|
)
|
|
18.6
|
|
Customer relationships
|
40.0
|
|
|
(18.6
|
)
|
|
21.4
|
|
Other
|
0.8
|
|
|
(0.7
|
)
|
|
0.1
|
|
Total
|
1,423.4
|
|
|
(69.4
|
)
|
|
1,354.0
|
|
$ in millions
Years Ended December 31,
|
Estimated Amortization Expense
|
|
2017
|
15.2
|
|
2018
|
9.1
|
|
2019
|
3.3
|
|
2020
|
3.3
|
|
2021
|
3.3
|
|
$ in millions
|
Net Book Value
|
|
January 1, 2016
|
6,175.7
|
|
Business combinations
|
135.7
|
|
Foreign exchange
|
(182.2
|
)
|
December 31, 2016
|
6,129.2
|
|
|
|
|
January 1, 2015
|
6,579.4
|
|
Foreign exchange
|
(403.7
|
)
|
December 31, 2015
|
6,175.7
|
|
|
As of
|
||||
$ in millions
|
December 31, 2016
|
|
December 31, 2015
|
||
Compensation and benefits
|
92.8
|
|
|
93.2
|
|
Accrued bonus and deferred compensation
|
561.5
|
|
|
568.1
|
|
Accrued compensation and benefits
|
654.3
|
|
|
661.3
|
|
|
|
|
|
||
Accruals and other liabilities
|
280.6
|
|
|
328.6
|
|
Deferred carried interest
|
87.7
|
|
|
69.2
|
|
Contingent consideration liability
|
78.2
|
|
|
83.9
|
|
Accounts payable
|
274.3
|
|
|
302.6
|
|
Income taxes payable
|
91.6
|
|
|
78.8
|
|
Accounts payable and accrued expenses
|
812.4
|
|
|
863.1
|
|
|
December 31, 2016
|
|
December 31, 2015
|
||||||||
$ in millions
|
Carrying Value**
|
|
Fair Value
|
|
Carrying Value**
|
|
Fair Value
|
||||
Floating rate credit facility expiring August 7, 2020
|
28.7
|
|
|
28.7
|
|
|
—
|
|
|
—
|
|
Unsecured Senior Notes*:
|
|
|
|
|
|
|
|
||||
$600 million 3.125% - due November 30, 2022
|
596.3
|
|
|
604.7
|
|
|
596.1
|
|
|
601.4
|
|
$600 million 4.000% - due January 30, 2024
|
593.2
|
|
|
625.3
|
|
|
592.7
|
|
|
628.3
|
|
$500 million 3.750% - due January 15, 2026
|
494.5
|
|
|
506.4
|
|
|
494.2
|
|
|
503.0
|
|
$400 million 5.375% - due November 30, 2043
|
389.7
|
|
|
441.4
|
|
|
389.8
|
|
|
428.6
|
|
Long-term debt
|
2,102.4
|
|
|
2,206.5
|
|
|
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.
|
$ in millions
|
December 31, 2016
|
|
2020
|
28.7
|
|
2022
|
596.3
|
|
2024
|
593.2
|
|
2026
|
494.5
|
|
2043
|
389.7
|
|
Long-term debt
|
2,102.4
|
|
In millions
|
December 31, 2016
|
|
December 31, 2015
|
|
December 31, 2014
|
|||
Common shares issued
|
490.4
|
|
|
490.4
|
|
|
490.4
|
|
Less: Treasury shares for which dividend and voting rights do not apply
|
(86.6
|
)
|
|
(72.9
|
)
|
|
(60.5
|
)
|
Common shares outstanding
|
403.8
|
|
|
417.5
|
|
|
429.9
|
|
|
Year ended
|
|||||||
In millions
|
December 31, 2016
|
|
December 31, 2015
|
|
December 31, 2014
|
|||
Beginning balance
|
81.3
|
|
|
69.4
|
|
|
66.8
|
|
Acquisition of common shares
|
19.6
|
|
|
17.4
|
|
|
9.5
|
|
Distribution of common shares
|
(4.7
|
)
|
|
(5.2
|
)
|
|
(5.8
|
)
|
Common shares distributed to meet ESPP obligation
|
(0.3
|
)
|
|
(0.1
|
)
|
|
(0.2
|
)
|
Common shares distributed to meet option exercises
|
—
|
|
|
(0.2
|
)
|
|
(0.9
|
)
|
Ending balance
|
95.9
|
|
|
81.3
|
|
|
69.4
|
|
|
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
|
(314.1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(314.1
|
)
|
Actuarial gain/(loss) related to employee benefit plans
|
—
|
|
|
(39.5
|
)
|
|
—
|
|
|
—
|
|
|
(39.5
|
)
|
Prior service credit/(cost) related to employee benefit plans
|
—
|
|
|
(3.1
|
)
|
|
—
|
|
|
—
|
|
|
(3.1
|
)
|
Settlement related to employee benefit plans
|
—
|
|
|
(5.5
|
)
|
|
—
|
|
|
—
|
|
|
(5.5
|
)
|
Reclassification of prior service (credit)/cost into employee compensation expense
|
—
|
|
|
(7.0
|
)
|
|
—
|
|
|
—
|
|
|
(7.0
|
)
|
Reclassification of actuarial (gains)/losses into employee compensation expenses
|
—
|
|
|
1.5
|
|
|
—
|
|
|
—
|
|
|
1.5
|
|
Share of other comprehensive income/(loss) of equity method investments
|
—
|
|
|
—
|
|
|
(1.1
|
)
|
|
—
|
|
|
(1.1
|
)
|
Unrealized gains/(losses) on available-for-sale investments
|
—
|
|
|
—
|
|
|
—
|
|
|
5.2
|
|
|
5.2
|
|
Reclassification of net (gains)/losses realized on available-for-sale investments included in other gains and losses, net
|
—
|
|
|
—
|
|
|
—
|
|
|
0.3
|
|
|
0.3
|
|
Other comprehensive income/(loss)
|
(314.1
|
)
|
|
(53.6
|
)
|
|
(1.1
|
)
|
|
5.5
|
|
|
(363.3
|
)
|
|
|
|
|
|
|
|
|
|
|
|||||
Beginning balance
|
(365.8
|
)
|
|
(85.6
|
)
|
|
5.9
|
|
|
(0.5
|
)
|
|
(446.0
|
)
|
Other comprehensive income/(loss)
|
(314.1
|
)
|
|
(53.6
|
)
|
|
(1.1
|
)
|
|
5.5
|
|
|
(363.3
|
)
|
Other comprehensive (income)/loss attributable to noncontrolling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Ending balance
|
(679.9
|
)
|
|
(139.2
|
)
|
|
4.8
|
|
|
5.0
|
|
|
(809.3
|
)
|
|
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
|
(493.9
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(493.9
|
)
|
Actuarial gain/(loss) related to employee benefit plans
|
—
|
|
|
11.1
|
|
|
—
|
|
|
—
|
|
|
11.1
|
|
Reclassification of prior service (credit)/cost into employee compensation expense
|
—
|
|
|
(7.2
|
)
|
|
—
|
|
|
—
|
|
|
(7.2
|
)
|
Reclassification of actuarial (gains)/losses into employee compensation expenses
|
—
|
|
|
2.2
|
|
|
—
|
|
|
—
|
|
|
2.2
|
|
Share of other comprehensive income/(loss) of equity method investments
|
—
|
|
|
—
|
|
|
(0.6
|
)
|
|
—
|
|
|
(0.6
|
)
|
Unrealized gains/(losses) on available-for-sale investments
|
—
|
|
|
—
|
|
|
—
|
|
|
(6.0
|
)
|
|
(6.0
|
)
|
Reclassification of net (gains)/losses realized on available-for-sale investments included in other gains and losses, net
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.4
|
)
|
|
(0.4
|
)
|
Other comprehensive income/(loss)
|
(493.9
|
)
|
|
6.1
|
|
|
(0.6
|
)
|
|
(6.4
|
)
|
|
(494.8
|
)
|
|
|
|
|
|
|
|
|
|
|
|||||
Beginning balance
|
128.1
|
|
|
(91.7
|
)
|
|
6.5
|
|
|
5.9
|
|
|
48.8
|
|
Other comprehensive income/(loss)
|
(493.9
|
)
|
|
6.1
|
|
|
(0.6
|
)
|
|
(6.4
|
)
|
|
(494.8
|
)
|
Other comprehensive (income)/loss attributable to noncontrolling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Ending balance
|
(365.8
|
)
|
|
(85.6
|
)
|
|
5.9
|
|
|
(0.5
|
)
|
|
(446.0
|
)
|
|
2014
|
|||||||||||||
$ in millions
|
Foreign currency translation
|
|
Employee benefit plans
|
|
Equity method investments
|
|
Available-for-sale investments
|
|
Total
|
|||||
Other comprehensive income/(loss) net of tax:
|
|
|
|
|
|
|
|
|
|
|||||
Currency translation differences on investments in foreign subsidiaries
|
(364.4
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(364.4
|
)
|
Actuarial gain/(loss) related to employee benefit plans
|
—
|
|
|
(26.0
|
)
|
|
—
|
|
|
—
|
|
|
(26.0
|
)
|
Prior service credit/(cost) related to employee benefit plans
|
|
|
14.9
|
|
|
|
|
|
|
14.9
|
|
|||
Reclassification of prior service (credit)/cost into employee compensation expense
|
—
|
|
|
(4.1
|
)
|
|
—
|
|
|
—
|
|
|
(4.1
|
)
|
Reclassification of actuarial (gains)/losses into employee compensation expenses
|
—
|
|
|
1.4
|
|
|
—
|
|
|
—
|
|
|
1.4
|
|
Share of other comprehensive income/(loss) of equity method investments
|
—
|
|
|
—
|
|
|
8.3
|
|
|
—
|
|
|
8.3
|
|
Unrealized gains/(losses) on available-for-sale investments
|
—
|
|
|
—
|
|
|
—
|
|
|
7.7
|
|
|
7.7
|
|
Reclassification of net (gains)/losses realized on available-for-sale investments included in other gains and losses, net
|
—
|
|
|
—
|
|
|
—
|
|
|
(16.9
|
)
|
|
(16.9
|
)
|
Other comprehensive income/(loss)
|
(364.4
|
)
|
|
(13.8
|
)
|
|
8.3
|
|
|
(9.2
|
)
|
|
(379.1
|
)
|
|
|
|
|
|
|
|
|
|
|
|||||
Beginning balance
|
492.5
|
|
|
(77.9
|
)
|
|
(1.8
|
)
|
|
15.1
|
|
|
427.9
|
|
Other comprehensive income/(loss)
|
(364.4
|
)
|
|
(13.8
|
)
|
|
8.3
|
|
|
(9.2
|
)
|
|
(379.1
|
)
|
Other comprehensive (income)/loss attributable to noncontrolling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Ending balance
|
128.1
|
|
|
(91.7
|
)
|
|
6.5
|
|
|
5.9
|
|
|
48.8
|
|
|
2016
|
|
2015
|
|
2014
|
|||||||||||||||
Millions of shares, except fair values
|
Time-Vested
|
|
Performance-Vested
|
|
Weighted Average Grant Date Fair Value ($)
|
|
Time-Vested
|
|
Performance-Vested
|
|
Time-
Vested
|
|
Performance-Vested
|
|||||||
Unvested at the beginning of year
|
10.4
|
|
|
0.6
|
|
|
33.62
|
|
|
11.5
|
|
|
0.5
|
|
|
13.9
|
|
|
0.4
|
|
Granted during the year
|
6.5
|
|
|
0.4
|
|
|
27.44
|
|
|
4.1
|
|
|
0.3
|
|
|
4.4
|
|
|
0.2
|
|
Forfeited during the year
|
(0.3
|
)
|
|
—
|
|
|
31.56
|
|
|
(0.2
|
)
|
|
—
|
|
|
(1.2
|
)
|
|
—
|
|
Vested and distributed during the year
|
(4.5
|
)
|
|
(0.2
|
)
|
|
31.30
|
|
|
(5.0
|
)
|
|
(0.2
|
)
|
|
(5.6
|
)
|
|
(0.1
|
)
|
Unvested at the end of the year
|
12.1
|
|
|
0.8
|
|
|
31.22
|
|
|
10.4
|
|
|
0.6
|
|
|
11.5
|
|
|
0.5
|
|
|
Retirement Plans
|
|
Medical Plan
|
||||||||
$ in millions
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||
Benefit obligation
|
(521.2
|
)
|
|
(490.7
|
)
|
|
—
|
|
|
(8.7
|
)
|
Fair value of plan assets
|
424.1
|
|
|
422.7
|
|
|
—
|
|
|
5.7
|
|
Funded status
|
(97.1
|
)
|
|
(68.0
|
)
|
|
—
|
|
|
(3.0
|
)
|
Amounts recognized in the Consolidated Balance Sheets:
|
|
|
|
|
|
|
|
||||
Other assets
|
3.4
|
|
|
4.9
|
|
|
—
|
|
|
—
|
|
Accrued compensation and benefits
|
(100.5
|
)
|
|
(72.9
|
)
|
|
—
|
|
|
(3.0
|
)
|
Funded status
|
(97.1
|
)
|
|
(68.0
|
)
|
|
—
|
|
|
(3.0
|
)
|
|
Retirement Plans
|
|
Medical Plan
|
||||||||
$ in millions
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||
January 1
|
490.7
|
|
|
520.2
|
|
|
8.7
|
|
|
10.2
|
|
Service cost
|
4.6
|
|
|
5.4
|
|
|
—
|
|
|
—
|
|
Interest cost
|
16.5
|
|
|
17.7
|
|
|
—
|
|
|
—
|
|
Contributions from plan participants
|
—
|
|
|
—
|
|
|
0.2
|
|
|
0.2
|
|
Actuarial (gains)/losses
|
102.4
|
|
|
(15.0
|
)
|
|
—
|
|
|
0.2
|
|
Exchange difference
|
(73.5
|
)
|
|
(26.1
|
)
|
|
—
|
|
|
—
|
|
Benefits paid
|
(13.8
|
)
|
|
(11.5
|
)
|
|
(8.9
|
)
|
|
(1.9
|
)
|
Plan amendments
|
4.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Curtailment
|
(9.8
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
December 31
|
521.2
|
|
|
490.7
|
|
|
—
|
|
|
8.7
|
|
|
Retirement Plans
|
|
Medical Plan
|
||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||
Discount rate
|
2.64
|
%
|
|
3.69
|
%
|
|
—
|
%
|
|
—
|
%
|
Expected rate of salary increases
|
3.26
|
%
|
|
3.16
|
%
|
|
—
|
%
|
|
—
|
%
|
Future pension/medical cost trend rate increases
|
2.98
|
%
|
|
2.98
|
%
|
|
N/A
|
|
|
5.00%-6.40%
|
|
|
Retirement Plans
|
|
Medical Plan
|
||||||||
$ in millions
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||
January 1
|
422.7
|
|
|
420.6
|
|
|
5.7
|
|
|
7.2
|
|
Actual return on plan assets
|
71.0
|
|
|
23.1
|
|
|
—
|
|
|
(0.1
|
)
|
Exchange difference
|
(69.9
|
)
|
|
(25.4
|
)
|
|
—
|
|
|
—
|
|
Contributions from the company
|
14.2
|
|
|
15.5
|
|
|
—
|
|
|
—
|
|
Contributions from plan participants
|
—
|
|
|
—
|
|
|
0.2
|
|
|
0.5
|
|
Benefits paid
|
(13.9
|
)
|
|
(11.1
|
)
|
|
(5.9
|
)
|
|
(1.9
|
)
|
December 31
|
424.1
|
|
|
422.7
|
|
|
—
|
|
|
5.7
|
|
|
Retirement Plans
|
|
Medical Plan
|
||||||||
$ in millions
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||
Prior service cost/(credit)
|
3.7
|
|
|
—
|
|
|
—
|
|
|
(11.3
|
)
|
Net actuarial loss/(gain)
|
164.1
|
|
|
118.2
|
|
|
—
|
|
|
(8.4
|
)
|
Total
|
167.8
|
|
|
118.2
|
|
|
—
|
|
|
(19.7
|
)
|
$ in millions
|
Retirement Plans
|
|
Medical Plan
|
||
Prior service cost/(credit)
|
0.1
|
|
|
—
|
|
Net actuarial loss/(gain)
|
3.1
|
|
|
—
|
|
Total
|
3.2
|
|
|
—
|
|
|
Retirement Plans
|
||||
$ in millions
|
2016
|
|
2015
|
||
Plans with accumulated benefit obligation in excess of plan assets:
|
|
|
|
||
Accumulated benefit obligation
|
512.1
|
|
|
480.9
|
|
Fair value of plan assets
|
411.6
|
|
|
407.9
|
|
Plans with projected benefit obligation in excess of plan assets:
|
|
|
|
|
|
Projected benefit obligation
|
512.1
|
|
|
480.9
|
|
Fair value of plan assets
|
411.6
|
|
|
407.9
|
|
|
Retirement Plans
|
|
Medical Plan
|
||||||||||||||
$ in millions
|
2016
|
|
2015
|
|
2014
|
|
2016
|
|
2015
|
|
2014
|
||||||
Service cost
|
4.6
|
|
|
5.4
|
|
|
4.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Interest cost
|
16.5
|
|
|
17.7
|
|
|
21.0
|
|
|
—
|
|
|
—
|
|
|
1.8
|
|
Expected return on plan assets
|
(21.7
|
)
|
|
(22.9
|
)
|
|
(24.6
|
)
|
|
—
|
|
|
—
|
|
|
(0.3
|
)
|
Amortization of prior service cost/(credit)
|
—
|
|
|
0.1
|
|
|
0.1
|
|
|
(11.3
|
)
|
|
(11.3
|
)
|
|
(2.3
|
)
|
Amortization of net actuarial (gain)/loss
|
1.8
|
|
|
3.0
|
|
|
1.8
|
|
|
(0.3
|
)
|
|
(0.3
|
)
|
|
—
|
|
Settlement
|
—
|
|
|
—
|
|
|
—
|
|
|
(9.0
|
)
|
|
—
|
|
|
—
|
|
Curtailment (gain)/loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4.3
|
)
|
Net periodic benefit cost/(credit)
|
1.2
|
|
|
3.3
|
|
|
3.2
|
|
|
(20.6
|
)
|
|
(11.6
|
)
|
|
(5.1
|
)
|
|
Retirement Plans
|
|||||||
|
2016
|
|
2015
|
|
2014
|
|||
Discount rate
|
3.69
|
%
|
|
3.52
|
%
|
|
4.39
|
%
|
Expected return on plan assets
|
5.53
|
%
|
|
5.90
|
%
|
|
6.01
|
%
|
Expected rate of salary increases
|
3.16
|
%
|
|
3.06
|
%
|
|
3.37
|
%
|
Future pension rate increases
|
2.98
|
%
|
|
2.88
|
%
|
|
2.85
|
%
|
|
Medical Plan
|
|||||||
|
2016
|
|
2015
|
|
2014
|
|||
Discount rate
|
—
|
%
|
|
—
|
%
|
|
4.70
|
%
|
Expected return on plan assets
|
—
|
%
|
|
—
|
%
|
|
6.25
|
%
|
Expected rate of salary increases
|
—
|
%
|
|
—
|
%
|
|
2.50
|
%
|
Future medical cost trend rate increases
|
5.00%-6.40%
|
|
|
5.00%-6.80%
|
|
|
5.00%-7.20%
|
|
$ in millions
|
Retirement Plans
|
|
% of Plan Assets
|
|
Medical Plan
|
|
% of Plan Assets
|
||||
Cash and cash equivalents
|
3.9
|
|
|
0.9
|
%
|
|
—
|
|
|
—
|
%
|
Fund investments
|
207.4
|
|
|
48.9
|
%
|
|
—
|
|
|
—
|
%
|
Equity securities
|
122.1
|
|
|
28.8
|
%
|
|
—
|
|
|
—
|
%
|
Government debt securities
|
73.0
|
|
|
17.2
|
%
|
|
—
|
|
|
—
|
%
|
Other assets
|
7.3
|
|
|
1.7
|
%
|
|
—
|
|
|
—
|
%
|
Guaranteed investments contracts
|
10.4
|
|
|
2.5
|
%
|
|
—
|
|
|
—
|
%
|
Total
|
424.1
|
|
|
100.0
|
%
|
|
—
|
|
|
—
|
%
|
$ in millions
|
Retirement Plans
|
|
% of Plan Assets
|
|
Medical Plan
|
|
% of Plan Assets
|
||||
Cash and cash equivalents
|
5.2
|
|
|
1.2
|
%
|
|
5.7
|
|
|
100.0
|
%
|
Fund investments
|
200.6
|
|
|
47.4
|
%
|
|
—
|
|
|
—
|
%
|
Equity securities
|
129.1
|
|
|
30.5
|
%
|
|
—
|
|
|
—
|
%
|
Government debt securities
|
70.6
|
|
|
16.7
|
%
|
|
—
|
|
|
—
|
%
|
Other assets
|
5.5
|
|
|
1.3
|
%
|
|
—
|
|
|
—
|
%
|
Guaranteed investments contracts
|
11.7
|
|
|
2.8
|
%
|
|
—
|
|
|
—
|
%
|
Total
|
422.7
|
|
|
100.0
|
%
|
|
5.7
|
|
|
100.0
|
%
|
•
|
Funding - to have sufficient assets available to pay members benefits;
|
•
|
Security - to maintain the minimum Funding Requirement;
|
•
|
Stability - to have due regard to the employer's ability in meeting contribution payments given their size and incidence.
|
|
As of December 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)
|
||||
Cash and cash equivalents
|
3.9
|
|
|
3.9
|
|
|
—
|
|
|
—
|
|
Fund investments
|
207.4
|
|
|
207.4
|
|
|
—
|
|
|
—
|
|
Equity securities
|
122.1
|
|
|
122.1
|
|
|
—
|
|
|
—
|
|
Government debt securities
|
73.0
|
|
|
13.7
|
|
|
59.3
|
|
|
—
|
|
Other assets
|
7.3
|
|
|
7.3
|
|
|
—
|
|
|
—
|
|
Guaranteed investments contracts
|
10.4
|
|
|
—
|
|
|
—
|
|
|
10.4
|
|
Total
|
424.1
|
|
|
350.5
|
|
|
59.3
|
|
|
10.4
|
|
|
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)
|
||||
Cash and cash equivalents
|
5.7
|
|
|
5.7
|
|
|
—
|
|
|
—
|
|
Fund investments
|
200.6
|
|
|
200.6
|
|
|
—
|
|
|
—
|
|
Equity securities
|
129.1
|
|
|
129.1
|
|
|
—
|
|
|
—
|
|
Government debt securities
|
70.6
|
|
|
13.5
|
|
|
57.1
|
|
|
—
|
|
Other assets
|
5.5
|
|
|
5.5
|
|
|
—
|
|
|
—
|
|
Guaranteed investment contracts
|
11.7
|
|
|
—
|
|
|
—
|
|
|
11.7
|
|
Total
|
423.2
|
|
|
354.4
|
|
|
57.1
|
|
|
11.7
|
|
$ in millions
|
Year ended December 31, 2016
|
|
Year ended December 31, 2015
|
||
Balance, beginning of year
|
11.7
|
|
|
13.1
|
|
Unrealized gains/(losses) relating to the instrument still held at the reporting date
|
0.6
|
|
|
0.1
|
|
Purchases, sales, issuances and settlements (net)
|
(1.9
|
)
|
|
(1.5
|
)
|
Balance, end of year
|
10.4
|
|
|
11.7
|
|
Assets
|
|
Fair Value at December 31, 2016 ($ in millions)
|
|
Valuation Technique
|
|
Unobservable Inputs
|
|
Range
|
|
Guaranteed investment contracts
|
|
10.4
|
|
|
Discounted cash flow
|
|
Discount rate
|
|
2.7%
|
|
|
|
|
|
|
Mortality assumption
|
|
Standard U.K. mortality tables with a long-term rate of improvement of 1.25%
|
$ in millions
|
Retirement Plans
|
|
Expected benefit payments:
|
|
|
2017
|
9.3
|
|
2018
|
9.6
|
|
2019
|
10.0
|
|
2020
|
10.3
|
|
2021
|
10.7
|
|
Thereafter in the succeeding five years
|
59.9
|
|
$ in millions
|
Total
|
|
Buildings
|
|
Other
|
|||
2017
|
54.5
|
|
|
51.5
|
|
|
3.0
|
|
2018
|
54.4
|
|
|
51.5
|
|
|
2.9
|
|
2019
|
53.3
|
|
|
50.5
|
|
|
2.8
|
|
2020
|
45.4
|
|
|
43.5
|
|
|
1.9
|
|
2021
|
44.0
|
|
|
43.2
|
|
|
0.8
|
|
Thereafter
|
98.0
|
|
|
98.0
|
|
|
—
|
|
Gross lease commitments
|
349.6
|
|
|
338.2
|
|
|
11.4
|
|
Less: future minimum payments expected to be received under non-cancelable subleases
|
7.0
|
|
|
7.0
|
|
|
—
|
|
Net lease commitments
|
342.6
|
|
|
331.2
|
|
|
11.4
|
|
$ in millions
|
2016
|
|
2015
|
|
2014
|
|||
Other gains:
|
|
|
|
|
|
|||
Gain on sale of investments
|
1.5
|
|
|
3.8
|
|
|
13.0
|
|
Gain on trading investments, net
|
14.2
|
|
|
—
|
|
|
15.4
|
|
Foreign exchange hedge gain
|
22.0
|
|
|
—
|
|
|
—
|
|
Gain on contingent consideration liability
|
—
|
|
|
27.1
|
|
|
—
|
|
Other realized gains
|
1.4
|
|
|
0.9
|
|
|
0.2
|
|
Total other gains
|
39.1
|
|
|
31.8
|
|
|
28.6
|
|
Other losses:
|
|
|
|
|
|
|||
Other-than-temporary impairment of available-for-sale investments
|
—
|
|
|
(2.0
|
)
|
|
—
|
|
Loss on trading investments, net
|
—
|
|
|
(13.5
|
)
|
|
—
|
|
Loss on contingent consideration liability
|
(7.4
|
)
|
|
—
|
|
|
—
|
|
Net foreign exchange losses
|
(6.0
|
)
|
|
(2.4
|
)
|
|
(0.2
|
)
|
Foreign exchange hedge loss
|
—
|
|
|
(7.7
|
)
|
|
—
|
|
Realized loss on sale of partnerships
|
—
|
|
|
(7.3
|
)
|
|
—
|
|
Other realized losses
|
(2.8
|
)
|
|
(0.4
|
)
|
|
(0.3
|
)
|
Total other losses
|
(16.2
|
)
|
|
(33.3
|
)
|
|
(0.5
|
)
|
Other gains and losses, net
|
22.9
|
|
|
(1.5
|
)
|
|
28.1
|
|
$ in millions
|
2016
|
|
2015
|
|
2014
|
|||
Current:
|
|
|
|
|
|
|||
Federal
|
(161.0
|
)
|
|
(221.0
|
)
|
|
(227.5
|
)
|
State
|
(18.9
|
)
|
|
(23.4
|
)
|
|
(31.3
|
)
|
Foreign
|
(143.0
|
)
|
|
(161.4
|
)
|
|
(161.2
|
)
|
|
(322.9
|
)
|
|
(405.8
|
)
|
|
(420.0
|
)
|
Deferred:
|
|
|
|
|
|
|
|
|
Federal
|
(21.1
|
)
|
|
11.9
|
|
|
26.8
|
|
State
|
(0.9
|
)
|
|
(5.2
|
)
|
|
1.0
|
|
Foreign
|
6.6
|
|
|
1.1
|
|
|
1.6
|
|
|
(15.4
|
)
|
|
7.8
|
|
|
29.4
|
|
Total income tax (provision)
|
(338.3
|
)
|
|
(398.0
|
)
|
|
(390.6
|
)
|
$ in millions
|
2016
|
|
2015
|
||
Deferred tax assets:
|
|
|
|
||
Deferred compensation arrangements
|
79.1
|
|
|
70.5
|
|
Accrued rent expenses
|
12.3
|
|
|
16.4
|
|
Tax loss carryforwards
|
64.8
|
|
|
61.3
|
|
Postretirement medical, pension and other benefits
|
24.4
|
|
|
19.5
|
|
Investment basis differences
|
58.3
|
|
|
66.9
|
|
Accrued bonus
|
64.8
|
|
|
67.1
|
|
Other
|
24.5
|
|
|
25.8
|
|
Total deferred tax assets
|
328.2
|
|
|
327.5
|
|
Valuation allowance
|
(59.0
|
)
|
|
(63.7
|
)
|
Deferred tax assets, net of valuation allowance
|
269.2
|
|
|
263.8
|
|
Deferred tax liabilities:
|
|
|
|
|
|
Deferred sales commissions
|
(13.5
|
)
|
|
(16.5
|
)
|
Goodwill and intangibles
|
(509.6
|
)
|
|
(471.5
|
)
|
Fixed assets
|
(27.6
|
)
|
|
(26.3
|
)
|
Other
|
(9.2
|
)
|
|
(23.3
|
)
|
Total deferred tax liabilities
|
(559.9
|
)
|
|
(537.6
|
)
|
Net deferred tax assets/(liabilities)
|
(290.7
|
)
|
|
(273.8
|
)
|
|
2016
|
|
2015
|
|
2014
|
|||
Statutory Rate
|
35.0
|
%
|
|
35.0
|
%
|
|
35.0
|
%
|
Foreign jurisdiction statutory income tax rates
|
(8.1
|
)%
|
|
(9.2
|
)%
|
|
(8.5
|
)%
|
State taxes, net of federal tax effect
|
1.6
|
%
|
|
1.6
|
%
|
|
1.4
|
%
|
Change in valuation allowance for unrecognized tax losses
|
(0.4
|
)%
|
|
(0.1
|
)%
|
|
(0.1
|
)%
|
Other
|
0.3
|
%
|
|
1.8
|
%
|
|
0.5
|
%
|
(Gains)/losses attributable to noncontrolling interests
|
(0.4
|
)%
|
|
0.1
|
%
|
|
(0.3
|
)%
|
Effective tax rate per Consolidated Statements of Income
|
28.0
|
%
|
|
29.2
|
%
|
|
28.0
|
%
|
$ in millions
|
Gross Unrecognized Income Tax Benefits
|
|
Balance at January 1, 2014
|
16.8
|
|
Additions for tax positions related to the current year
|
—
|
|
Additions for tax positions related to prior years
|
1.2
|
|
Other reductions for tax positions related to prior years
|
(10.8
|
)
|
Reductions for statute closings
|
(1.2
|
)
|
Balance at December 31, 2014
|
6.0
|
|
Additions for tax positions related to the current year
|
2.5
|
|
Additions for tax positions related to prior years
|
2.2
|
|
Other reductions for tax positions related to prior years
|
(1.1
|
)
|
Reductions for statute closings
|
—
|
|
Balance at December 31, 2015
|
9.6
|
|
Additions for tax positions related to the current year
|
0.9
|
|
Additions for tax positions related to prior years
|
0.1
|
|
Other reductions for tax positions related to prior years
|
(0.1
|
)
|
Reductions for statute closings
|
—
|
|
Balance at December 31, 2016
|
10.5
|
|
|
Years ended December 31,
|
||||||||||
In millions, except per share data
|
2016
|
|
2015
|
|
2014
|
||||||
Income from continuing operations, net of taxes
|
|
$868.3
|
|
|
|
$964.1
|
|
|
|
$1,004.5
|
|
Net (income)/loss attributable to noncontrolling interests in consolidated entities
|
(14.1
|
)
|
|
4.0
|
|
|
(13.0
|
)
|
|||
Income from continuing operations attributable to Invesco Ltd. for basic and diluted EPS calculations
|
854.2
|
|
|
968.1
|
|
|
991.5
|
|
|||
Income from discontinued operations, net of taxes
|
—
|
|
|
—
|
|
|
(3.4
|
)
|
|||
Net income attributable to Invesco Ltd.
|
854.2
|
|
|
968.1
|
|
|
988.1
|
|
|||
Less: Allocation of earnings to restricted shares
|
(24.8
|
)
|
|
(24.6
|
)
|
|
(28.2
|
)
|
|||
Net income attributable to common shareholders
|
|
$829.4
|
|
|
|
$943.5
|
|
|
|
$959.9
|
|
|
|
|
|
|
|
||||||
Invesco Ltd:
|
|
|
|
|
|
||||||
Weighted average shares outstanding - basic
|
414.7
|
|
|
428.9
|
|
|
435.0
|
|
|||
Dilutive effect of non-participating share-based awards
|
0.3
|
|
|
0.4
|
|
|
0.6
|
|
|||
Weighted average shares outstanding - diluted
|
415.0
|
|
|
429.3
|
|
|
435.6
|
|
|||
|
|
|
|
|
|
||||||
Common shareholders:
|
|
|
|
|
|
||||||
Weighted average shares outstanding - basic
|
414.7
|
|
|
428.9
|
|
|
435
|
|
|||
Less: Weighted average restricted shares
|
(12.1
|
)
|
|
(10.9
|
)
|
|
(12.4
|
)
|
|||
Weighted average common shares outstanding- basic
|
402.6
|
|
|
418.0
|
|
|
422.6
|
|
|||
Dilutive effect of non-participating share-based awards
|
0.3
|
|
|
0.4
|
|
|
0.6
|
|
|||
Weighted average common shares outstanding - diluted
|
402.9
|
|
|
418.4
|
|
|
423.2
|
|
|||
|
|
|
|
|
|
||||||
Basic earnings per share:
|
|
|
|
|
|
||||||
Earnings per share from continuing operations
|
$2.06
|
|
$2.26
|
|
$2.28
|
||||||
Earnings per share from discontinued operations
|
$0.00
|
|
$0.00
|
|
$(0.01)
|
||||||
Basic earnings per share
|
$2.06
|
|
$2.26
|
|
$2.27
|
||||||
|
|
|
|
|
|
||||||
Diluted earnings per share:
|
|
|
|
|
|
||||||
Earnings per share from continuing operations
|
$2.06
|
|
$2.26
|
|
$2.28
|
||||||
Earnings per share from discontinued operations
|
$0.00
|
|
$0.00
|
|
$(0.01)
|
||||||
Diluted earnings per share
|
$2.06
|
|
$2.26
|
|
$2.27
|
$ in millions
|
U.S.
|
|
U.K.
|
|
Continental Europe/Ireland
|
|
Canada
|
|
Asia
|
|
Total
|
||||||
For the year ended December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Revenue from external customers
|
2,544.2
|
|
|
930.9
|
|
|
826.8
|
|
|
325.5
|
|
|
107.0
|
|
|
4,734.4
|
|
Inter-company revenue
|
(27.0
|
)
|
|
99.0
|
|
|
(188.9
|
)
|
|
(10.3
|
)
|
|
127.2
|
|
|
—
|
|
Total operating revenues
|
2,517.2
|
|
|
1,029.9
|
|
|
637.9
|
|
|
315.2
|
|
|
234.2
|
|
|
4,734.4
|
|
Long-lived assets
|
331.6
|
|
|
95.9
|
|
|
10.7
|
|
|
9.4
|
|
|
17.1
|
|
|
464.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
For the year ended December 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Revenue from external customers
|
2,622.1
|
|
|
1,153.0
|
|
|
891.9
|
|
|
353.9
|
|
|
102.0
|
|
|
5,122.9
|
|
Inter-company revenue
|
(8.6
|
)
|
|
114.4
|
|
|
(216.7
|
)
|
|
(7.0
|
)
|
|
117.9
|
|
|
—
|
|
Total operating revenues
|
2,613.5
|
|
|
1,267.4
|
|
|
675.2
|
|
|
346.9
|
|
|
219.9
|
|
|
5,122.9
|
|
Long-lived assets
|
306.7
|
|
|
88.3
|
|
|
6.8
|
|
|
10.0
|
|
|
15.1
|
|
|
426.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
For the year ended December 31, 2014
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Revenue from external customers
|
2,534.9
|
|
|
1,286.7
|
|
|
810.2
|
|
|
396.6
|
|
|
118.7
|
|
|
5,147.1
|
|
Inter-company revenue
|
11.5
|
|
|
87.8
|
|
|
(205.5
|
)
|
|
(8.9
|
)
|
|
115.1
|
|
|
—
|
|
Total operating revenues
|
2,546.4
|
|
|
1,374.5
|
|
|
604.7
|
|
|
387.7
|
|
|
233.8
|
|
|
5,147.1
|
|
Long-lived assets
|
279.2
|
|
|
91.6
|
|
|
6.6
|
|
|
9.9
|
|
|
15.3
|
|
|
402.6
|
|
$ 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 (Level 2) |
|
Significant
Other 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
|
December 31, 2016
|
|
December 31, 2015
|
||
Cash and cash equivalents of CIP
|
742.2
|
|
|
363.3
|
|
Accounts receivable and other assets of CIP
|
106.2
|
|
|
173.5
|
|
Investments of CIP
|
5,116.1
|
|
|
6,016.1
|
|
Less: Debt of CIP
|
(4,403.1
|
)
|
|
(5,437.0
|
)
|
Less: Other liabilities of CIP
|
(673.4
|
)
|
|
(273.7
|
)
|
Less: Retained earnings
|
19.0
|
|
|
20.1
|
|
Less: Accumulated other comprehensive income, net of tax
|
(18.0
|
)
|
|
(20.1
|
)
|
Less: Equity attributable to redeemable noncontrolling interests
|
(283.7
|
)
|
|
—
|
|
Less: Equity attributable to nonredeemable noncontrolling interests
|
(107.2
|
)
|
|
(768.8
|
)
|
Invesco's net interests in CIP
|
498.1
|
|
|
73.4
|
|
|
|
Years ended December 31,
|
|||||||
$ in millions
|
|
2016
|
|
2015
|
|
2014
|
|||
Total operating revenues
|
|
(22.3
|
)
|
|
(39.2
|
)
|
|
(35.2
|
)
|
Total operating expenses
|
|
28.7
|
|
|
24.0
|
|
|
34.6
|
|
Operating income
|
|
(51.0
|
)
|
|
(63.2
|
)
|
|
(69.8
|
)
|
Equity in earnings of unconsolidated affiliates
|
|
(8.9
|
)
|
|
(1.7
|
)
|
|
(4.0
|
)
|
Interest and dividend income
|
|
(0.3
|
)
|
|
(4.4
|
)
|
|
(3.3
|
)
|
Other gains and losses, net
|
|
(1.9
|
)
|
|
(3.9
|
)
|
|
(4.8
|
)
|
Interest and dividend income of CIP
|
|
195.3
|
|
|
253.0
|
|
|
206.5
|
|
Interest expense of CIP
|
|
(123.5
|
)
|
|
(188.9
|
)
|
|
(133.9
|
)
|
Other gains/(losses) of CIP, net
|
|
7.4
|
|
|
(37.0
|
)
|
|
20.4
|
|
Income before income taxes
|
|
17.1
|
|
|
(46.1
|
)
|
|
11.1
|
|
Income tax provision
|
|
—
|
|
|
—
|
|
|
—
|
|
Net income
|
|
17.1
|
|
|
(46.1
|
)
|
|
11.1
|
|
Net (income)/loss attributable to noncontrolling interests in consolidated entities
|
|
(14.1
|
)
|
|
5.7
|
|
|
(3.3
|
)
|
Net income attributable to Invesco Ltd.
|
|
3.0
|
|
|
(40.4
|
)
|
|
7.8
|
|
|
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 year ended December 31, 2016
|
|
For the year ended December 31, 2015
|
||||||||
$ in millions
|
|
VIEs
|
|
VOEs
|
|
VIEs
|
|
VOEs
|
||||
Cash and cash equivalents of CIP
|
|
609.8
|
|
|
—
|
|
|
449.8
|
|
|
10.0
|
|
Accounts receivable and other assets of CIP
|
|
108.5
|
|
|
0.2
|
|
|
5.6
|
|
|
—
|
|
Investments of CIP
|
|
1,032.8
|
|
|
49.8
|
|
|
1,009.5
|
|
|
49.9
|
|
Total assets
|
|
1,751.1
|
|
|
50.0
|
|
|
1,464.9
|
|
|
59.9
|
|
|
|
|
|
|
|
|
|
|
||||
Debt of CIP
|
|
1,013.3
|
|
|
—
|
|
|
1,100.4
|
|
|
—
|
|
Other liabilities of CIP
|
|
472.4
|
|
|
—
|
|
|
364.5
|
|
|
—
|
|
Total liabilities
|
|
1,485.7
|
|
|
—
|
|
|
1,464.9
|
|
|
—
|
|
Total equity
|
|
265.4
|
|
|
50.0
|
|
|
—
|
|
|
59.9
|
|
Total liabilities and equity
|
|
1,751.1
|
|
|
50.0
|
|
|
1,464.9
|
|
|
59.9
|
|
|
For the year ended December 31, 2016
|
|
For the year ended December 31, 2015
|
||
$ in millions
|
VIEs
|
|
VIEs
|
||
Cash and cash equivalents of CIP
|
40.1
|
|
|
30.5
|
|
Accounts receivable and other assets of CIP
|
19.0
|
|
|
17.6
|
|
Investments of CIP
|
418.0
|
|
|
346.5
|
|
Total assets
|
477.1
|
|
|
394.6
|
|
|
|
|
|
||
Debt of CIP
|
—
|
|
|
347.9
|
|
Other liabilities of CIP
|
23.9
|
|
|
45.7
|
|
Total liabilities
|
23.9
|
|
|
393.6
|
|
Total equity
|
453.2
|
|
|
1.0
|
|
Total liabilities and equity
|
477.1
|
|
|
394.6
|
|
|
As of December 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
|
4,397.8
|
|
|
—
|
|
|
4,397.8
|
|
|
—
|
|
|
—
|
|
Bonds
|
370.9
|
|
|
—
|
|
|
370.9
|
|
|
—
|
|
|
—
|
|
Equity securities
|
167.4
|
|
|
166.0
|
|
|
1.4
|
|
|
—
|
|
|
—
|
|
Equity and fixed income mutual funds
|
13.0
|
|
|
13.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Investments in other private equity funds
|
68.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
68.6
|
|
Real estate investments
|
40.7
|
|
|
—
|
|
|
—
|
|
|
40.7
|
|
|
—
|
|
Investments in fixed income fund of funds
|
57.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
57.7
|
|
Total assets at fair value
|
5,116.1
|
|
|
179.0
|
|
|
4,770.1
|
|
|
40.7
|
|
|
126.3
|
|
|
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
|
|
|
Year ended December 31, 2016
|
|
Year ended December 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
|
39.4
|
|
|
—
|
|
|
96.1
|
|
|
—
|
|
Sales
|
—
|
|
|
—
|
|
|
(42.1
|
)
|
|
—
|
|
Gains and losses included in the Consolidated Statements of Income*
|
1.3
|
|
|
—
|
|
|
(20.9
|
)
|
|
—
|
|
Transfers to Level 1 and 2**
|
—
|
|
|
—
|
|
|
(8.4
|
)
|
|
—
|
|
Ending balance
|
40.7
|
|
|
—
|
|
|
388.6
|
|
|
—
|
|
*
|
Included in gains/(losses) of CIP, net in the Consolidated Statement of Income for the year ended
December 31, 2016
are
$1.3 million
in net unrealized
gains
attributable to investments still held at
December 31, 2016
by CIP (year ended
December 31, 2015
:
$29.4 million
net unrealized
losses
attributable to investments still held at
December 31, 2015
).
|
**
|
During the year ended
December 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 existence of legal lock up requirements of securities following the public offering of the underlying companies. During the year ended
December 31, 2015
,
$0.6 million
of equity securities held by consolidated private equity funds were transferred from Level 3 to Level 1 following the public offering of the underlying companies. For transfers due to public offerings, the company's policy is to use the fair value of the transferred security at the end of the period.
|
Assets and Liabilities *
|
|
Fair Value at December 31, 2015 ($ 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
).
|
|
|
December 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)
|
|
$68.6
|
|
$41.9
|
|
7 years
|
|
$368.2
|
|
$218.1
|
|
2.8 years
|
Investments in fixed income fund of funds
(3)
|
|
$57.7
|
|
—
|
|
n/a
|
|
—
|
|
—
|
|
n/a
|
(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.
|
|
Years ended December 31,
|
|||||||
$ in millions
|
2016
|
|
2015
|
|
2014
|
|||
Affiliated operating revenues:
|
|
|
|
|
|
|||
Investment management fees
|
3,274.3
|
|
|
3,565.8
|
|
|
3,609.8
|
|
Service and distribution fees
|
822.3
|
|
|
854.0
|
|
|
880.5
|
|
Performance fees
|
21.5
|
|
|
29.2
|
|
|
39.0
|
|
Other
|
79.8
|
|
|
108.5
|
|
|
120.5
|
|
Total affiliated operating revenues
|
4,197.9
|
|
|
4,557.5
|
|
|
4,649.8
|
|
|
As of December 31,
|
||||
$ in millions
|
2016
|
|
2015
|
||
Affiliated asset balances:
|
|
|
|
||
Cash and cash equivalents
|
476.2
|
|
|
383.3
|
|
Unsettled fund receivables
|
253.2
|
|
|
166.7
|
|
Accounts receivable
|
344.4
|
|
|
317.7
|
|
Investments
|
728.3
|
|
|
982.7
|
|
Assets held for policyholders
|
8,224.2
|
|
|
6,051.2
|
|
Other assets
|
2.9
|
|
|
3.4
|
|
Total affiliated asset balances
|
10,029.2
|
|
|
7,905.0
|
|
|
|
|
|
||
Affiliated liability balances:
|
|
|
|
||
Accrued compensation and benefits
|
76.5
|
|
|
105.0
|
|
Accounts payable and accrued expenses
|
94.7
|
|
|
82.9
|
|
Unsettled fund payables
|
318.7
|
|
|
248.2
|
|
Total affiliated liability balances
|
489.9
|
|
|
436.1
|
|
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 on Form 10-Q, filed with the Securities and Exchange Commission on July 31, 2014
|
4.1
|
Specimen Certificate for Common Shares of Invesco Ltd., incorporated by reference to exhibit 4.1 to Invesco’s Current Report on Form 8-K, filed with the Securities and Exchange Commission on December 12, 2007
|
4.2
|
Indenture, dated as of November 8, 2012, for Invesco Finance PLC’s 3.125% Senior Notes due 2022, among Invesco Finance PLC, the Guarantors and The Bank of New York Mellon, as trustee, incorporated by reference to exhibit 4.1 to Invesco’s Current Report on Form 8-K, filed with the Securities and Exchange Commission on November 9, 2012
|
4.3
|
Supplemental Indenture, dated November 8, 2012, for Invesco Finance PLC’s 3.125% Senior Notes due 2022, among Invesco Finance PLC, the Guarantors and The Bank of New York Mellon, as trustee, incorporated by reference to exhibit 4.2 to Invesco’s Current Report on Form 8-K, filed with the Securities and Exchange Commission on November 9, 2012
|
4.4
|
Form of 3.125% Senior Notes due 2022 (included in Exhibit 4.3 hereto)
|
4.5
|
Second Supplemental Indenture, dated November 12, 2013, for Invesco Finance PLC’s 3.125% Senior Notes due 2022, among Invesco Finance PLC, the company and The Bank of New York Mellon, as trustee, incorporated by reference to exhibit 4.2 to Invesco’s Current Report on Form 8-K, filed with the Securities and Exchange Commission on November 12, 2013
|
4.6
|
Third Supplemental Indenture, dated November 12, 2013, for Invesco Finance PLC’s 3.125% Senior Notes due 2022, among Invesco Finance PLC, the company and The Bank of New York Mellon, as trustee, incorporated by reference to exhibit 4.2 to Invesco’s Current Report on Form 8-K, filed with the Securities and Exchange Commission on November 12, 2013
|
4.7
|
Fourth Supplemental Indenture, dated October 14, 2015, for Invesco Finance PLC’s 3.125% Senior Notes due 2022, among Invesco Finance PLC, the company and The Bank of New York Mellon, as trustee, incorporated by reference to exhibit 4.2 to Invesco’s Current Report on Form 8-K, filed with the Securities and Exchange Commission on October 14, 2015
|
4.8
|
Form of 4.000% Senior Notes due 2024 (included in Exhibit 4.5)
|
4.9
|
Form of 5.375% Senior Notes due 2043 (included in Exhibit 4.6)
|
4.10
|
Form of 3.750% Senior Notes due 2026 (included in Exhibit 4.7)
|
10.1
|
Third Amended and Restated Credit Agreement, dated as of August 7, 2015, among Invesco Finance PLC, the company, the banks, financial institutions and other institutional lenders from time to time a party thereto and Bank of America, N.A., as administrative agent, incorporated by reference to exhibit 10.1 to Invesco’s Quarterly Report on Form 10-Q for the period ended September 30, 2015, filed with the Securities and Exchange Commission on October 29, 2015
|
10.2
|
Invesco Ltd. 2011 Global Equity Incentive Plan, as amended and restated effective February 12, 2015, incorporated by reference to exhibit 10.5 to Invesco’s Annual Report on Form 10-K for the year ended December 31, 2014, filed with the Securities and Exchange Commission on February 20, 2015
|
10.3
|
Invesco Ltd. 2016 Global Equity Plan, incorporated by reference to Appendix A to the Proxy Statement on Schedule 14A filed with the Securities and Exchange Commission on March 24, 2016
|
10.4
|
Form of Restricted Stock Award Agreement - Time Vesting - under the Invesco Ltd. 2011 Global Equity Incentive Plan, incorporated by reference to exhibit 10.16 to Invesco’s Annual Report on Form 10-K for the year ended December 31, 2014, filed with the Securities and Exchange Commission on February 20, 2015
|
10.5
|
Form of Restricted Stock Unit Award Agreement - Time Vesting - under the Invesco Ltd. 2011 Global Equity Incentive Plan, incorporated by reference to exhibit 10.17 to Invesco’s Annual Report on Form 10-K for the year ended December 31, 2014, filed with the Securities and Exchange Commission on February 20, 2015
|
10.6
|
Form of Restricted Stock Award Agreement - Performance Vesting - under the Invesco Ltd. 2011 Global Equity Incentive Plan, incorporated by reference to exhibit 10.18 to Invesco’s Annual Report on Form 10-K for the year ended December 31, 2014, filed with the Securities and Exchange Commission on February 20, 2015
|
10.7
|
Form of Restricted Stock Unit Award Agreement - Performance Vesting - under the Invesco Ltd. 2011 Global Equity Incentive Plan, incorporated by reference to exhibit 10.19 to Invesco’s Annual Report on Form 10-K for the year ended December 31, 2014, filed with the Securities and Exchange Commission on February 20, 2015
|
10.8
|
Form of Restricted Stock Award Agreement - Time Vesting - with respect to Martin L. Flanagan - under the Invesco Ltd. 2011 Global Equity Incentive Plan, incorporated by reference to exhibit 10.20 to Invesco’s Annual Report on Form 10-K for the year ended December 31, 2014, filed with the Securities and Exchange Commission on February 20, 2015
|
10.9
|
Form of Restricted Stock Award Agreement - Performance Vesting - with respect to Martin L. Flanagan - under the Invesco Ltd. 2011 Global Equity Incentive Plan, incorporated by reference to exhibit 10.21 to Invesco’s Annual Report on Form 10-K for the year ended December 31, 2014, filed with the Securities and Exchange Commission on February 20, 2015
|
10.10
|
Form of Restricted Stock Unit Award Agreement - Time Vesting - Canada (Tranches 1-3) - under the Invesco Ltd. 2011 Global Equity Incentive Plan, incorporated by reference to exhibit 10.22 to Invesco’s Annual Report on Form 10-K for the year ended December 31, 2014, filed with the Securities and Exchange Commission on February 20, 2015
|
10.11
|
Form of Restricted Stock Unit Award Agreement - Time Vesting - Canada (Tranche 4) - under the Invesco Ltd. 2011 Global Equity Incentive Plan, incorporated by reference to exhibit 10.23 to Invesco’s Annual Report on Form 10-K for the year ended December 31, 2014, filed with the Securities and Exchange Commission on February 20, 2015
|
10.12
|
Form of Restricted Stock Unit Award Agreement - Performance Vesting - Canada (Tranches 1-3) - under the Invesco Ltd. 2011 Global Equity Incentive Plan, incorporated by reference to exhibit 10.24 to Invesco’s Annual Report on Form 10-K for the year ended December 31, 2014, filed with the Securities and Exchange Commission on February 20, 2015
|
10.13
|
Form of Restricted Stock Unit Award Agreement - Performance Vesting - Canada (Tranche 4) - under the Invesco Ltd. 2011 Global Equity Incentive Plan, incorporated by reference to exhibit 10.25 to Invesco’s Annual Report on Form 10-K for the year ended December 31, 2014, filed with the Securities and Exchange Commission on February 20, 2015
|
10.14
|
Form of Restricted Stock Unit Award Agreement (Feb 2016) - Performance Vesting - under the Invesco Ltd. 2011 Global Equity Incentive Plan, incorporated by reference to exhibit 10.24 to Invesco’s Annual Report on Form 10-K for the year ended December 31, 2015, filed with the Securities and Exchange Commission on February 19, 2016
|
10.15
|
Form of Restricted Stock Unit Award Agreement (Feb 2016) - Performance Vesting - with respect to Martin L. Flanagan - under the Invesco Ltd. 2011 Global Equity Incentive Plan
|
10.16
|
Form of Restricted Stock Unit Award Agreement (Feb 2016) - Performance Vesting - Canada - under the Invesco Ltd. 2011 Global Equity Incentive Plan, incorporated by reference to exhibit 10.26 to Invesco’s Annual Report on Form 10-K for the year ended December 31, 2015, filed with the Securities and Exchange Commission on February 19, 2016
|
10.17
|
Form of Restricted Stock Award Agreement - Time Vesting - under the Invesco Ltd. 2016 Global Equity Incentive Plan
|
10.18
|
Form of Restricted Stock Award Agreement - Time Vesting - with respect to Martin L. Flanagan - under the Invesco Ltd. 2016 Global Equity Incentive Plan
|
10.19
|
Form of Restricted Stock Unit Award Agreement - Time Vesting - under the Invesco Ltd. 2016 Global Equity Incentive Plan
|
10.20
|
Form of Restricted Stock Unit Award Agreement - Time Vesting - Canada (Tranches 1-3) - under the Invesco Ltd. 2016 Global Equity Incentive Plan
|
10.21
|
Form of Restricted Stock Unit Award Agreement - Time Vesting - Canada (Tranche 4) - under the Invesco Ltd. 2016 Global Equity Incentive Plan
|
10.22
|
Form of Restricted Stock Unit Award Agreement -Performance Vesting - under the Invesco Ltd. 2016 Global Equity Incentive Plan
|
10.23
|
Form of Restricted Stock Unit Award Agreement -Performance Vesting - with respect to Martin L. Flanagan - under the Invesco Ltd. 2016 Global Equity Incentive Plan
|
10.24
|
Form of Restricted Stock Unit Award Agreement -Performance Vesting - Canada - under the Invesco Ltd. 2016 Global Equity Incentive Plan
|
10.25
|
Form of Award Agreement for Non-Executive Directors under the Invesco Ltd. 2016 Global Equity Incentive Plan
|
10.26
|
Form of Aircraft Time Sharing Agreement incorporated by reference to exhibit 10.19 to Invesco’s Annual Report on Form 10-K for the year ended December 31, 2013, filed with the Securities and Exchange Commission on February 21, 2014
|
10.27
|
Invesco Ltd. Executive Incentive Bonus Plan, as amended and restated effective January 1, 2013, incorporated by reference to Appendix A to Proxy Statement on Schedule 14A filed with the Securities and Exchange Commission on April 1, 2013
|
10.28
|
Invesco Ltd. Amended and Restated 2005 Non-Qualified Deferred Compensation Plan, effective as of January 1, 2009, incorporated by reference to exhibit 10.8 to Invesco’s Annual Report on Form 10-K for the year ended December 31, 2008, filed with the Securities and Exchange Commission on February 27, 2009
|
10.29
|
Deferred Fees Share Plan, as amended and restated effective December 10, 2008, incorporated by reference to exhibit 10.13 to Invesco’s Annual Report on Form 10-K for the year ended December 31, 2008, filed with the Securities and Exchange Commission on February 27, 2009
|
10.30
|
Second Amended and Restated Master Employment Agreement, dated April 1, 2011, between the company and Martin L. Flanagan, incorporated by reference to exhibit 10.1 to Invesco’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2011, filed with the Securities and Exchange Commission on April 29, 2011
|
10.31
|
Global Partner Agreement, dated November 10, 2005, between AMVESCAP PLC and Loren M. Starr, incorporated by reference to exhibit 10.14 to Invesco’s Annual Report on Form 10-K for the year ended December 31, 2007, filed with the Securities and Exchange Commission on February 29, 2008
|
10.32
|
Global Partner Agreement, dated January 1, 2001, between AIM Funds Management Inc. and Philip A. Taylor, incorporated by reference to exhibit 10.15 to Invesco’s Annual Report on Form 10-K for the year ended December 31, 2007, filed with the Securities and Exchange Commission on February 29, 2008
|
10.33
|
Global Partners Employment Contract, dated April 1, 2000, between INVESCO Pacific Holdings Limited and Andrew Lo, incorporated by reference to exhibit 10.17 to Invesco’s Annual Report on Form 10-K for the year ended December 31, 2007, filed with the Securities and Exchange Commission on February 29, 2008
|
10.34
|
Senior Managing Director Agreement, between Andrew Lo and Invesco Group Services, Inc., effective as of January 1, 2010, incorporated by reference to exhibit 10.32 to Invesco’s Annual Report on Form 10-K for the year ended December 31, 2011, filed with the Securities and Exchange Commission on February 24, 2012
|
10.35
|
Global Partner Agreement, dated June 7, 2006, between AMVESCAP PLC and Colin D. Meadows
|
Invesco Ltd.
|
|
|
|
By:
|
/s/ MARTIN L. FLANAGAN
|
Name:
|
Martin L. Flanagan
|
Title:
|
President and Chief Executive Officer
|
|
|
Date:
|
February 23, 2017
|
Name
|
Title
|
Date
|
|
|
|
/s/ MARTIN L. FLANAGAN
|
Chief Executive Officer (Principal Executive Officer) and President; Director
|
February 23, 2017
|
Martin L. Flanagan
|
|
|
/s/ LOREN M. STARR
|
Senior Managing Director and Chief Financial Officer (Principal Financial Officer)
|
February 23, 2017
|
Loren M. Starr
|
|
|
/s/ RODERICK G.H. ELLIS
|
Group Controller and Chief Accounting Officer (Principal Accounting Officer)
|
February 23, 2017
|
Roderick G.H. Ellis
|
|
|
/s/ BEN F. JOHNSON III
|
Chairman and Director
|
February 23, 2017
|
Ben F. Johnson III
|
|
|
/s/ JOSEPH R. CANION
|
Director
|
February 23, 2017
|
Joseph R. Canion
|
|
|
/s/ C. ROBERT HENRIKSON
|
Director
|
February 23, 2017
|
C. Robert Henrikson
|
|
|
/s/ DENIS KESSLER
|
Director
|
February 23, 2017
|
Denis Kessler
|
|
|
/s/ EDWARD P. LAWRENCE
|
Director
|
February 23, 2017
|
Edward P. Lawrence
|
|
|
/s/ SIR NIGEL SHEINWALD
|
Director
|
February 23, 2017
|
Sir Nigel Sheinwald
|
|
|
/s/ G. RICHARD WAGONER, JR.
|
Director
|
February 23, 2017
|
G. Richard Wagoner, Jr.
|
|
|
/s/ PHOEBE A. WOOD
|
Director
|
February 23, 2017
|
Phoebe A. Wood
|
|
|
(a)
|
the Determination Dates, to the extent provided under the Performance Vesting Formula, if you have not experienced a Termination of Service before such respective dates, or
|
(b)
|
your Termination of Service due to death or Disability, or
|
(c)
|
your involuntary Termination of Service, other than for Cause or unsatisfactory performance, as determined in the sole discretion by the Head of Human Resources, provided that you sign and do not revoke a severance agreement in the form stipulated by the Company within 60 days after your Termination of Service or such other time as the Company may determine and the severance agreement has become irrevocable, or
|
(d)
|
immediately before a Change in Control, if this Award Agreement is not assumed, converted or replaced in connection with the transaction that constitutes the Change in Control, or
|
(e)
|
your Termination of Service during the 24-month period following a Change in Control either (i) by the Company other than for Cause or unsatisfactory performance, or (ii) by you for Good Reason.
|
I.
|
Definitions
|
II.
|
Performance Vesting Formulas
|
a.
|
On the second anniversary of the Grant Date, the number of RSUs that shall become vested and non-forfeitable shall equal 50% of the Target Total Award multiplied by the Vesting Percentage associated with the First Grant Average AOM on the chart below, rounded down to the nearest full Share, as the same shall be calculated by the Committee. The Committee’s good faith calculation of the number of RSUs that become vested and non-forfeitable pursuant to the Performance Vesting Formula shall be final and binding upon you and the Company. Vesting to range from 0% to 150; straight line interpolation to be used for actual results.
|
First Grant
Average AOM (%)
|
≤28
|
29
|
30
|
31
|
32
|
33
|
34
|
35
|
36-44
|
45
|
46
|
47
|
48
|
49
|
50
|
51
|
52
|
53
|
≥54
|
AOM Vesting
Percentage
|
0
|
25
|
50
|
75
|
80
|
85
|
90
|
95
|
100
|
105
|
110
|
115
|
120
|
125
|
130
|
135
|
140
|
145
|
150
|
b.
|
On the third anniversary of the Grant Date, the number of RSUs that shall become vested and non-forfeitable shall equal 50% of the Target Total Award multiplied by the Vesting Percentage associated with the Second Grant Average AOM on the chart below, rounded down to the nearest full Share, as the same shall be calculated by the Committee. The Committee’s good faith calculation of the number of RSUs that become vested and non-forfeitable pursuant to the Performance Vesting Formula shall be final and binding upon you and the Company. Vesting to range from 0% to 150%; straight line interpolation to be used for actual results.
|
Second Grant
Average AOM (%)
|
≤28
|
29
|
30
|
31
|
32
|
33
|
34
|
35
|
36-44
|
45
|
46
|
47
|
48
|
49
|
50
|
51
|
52
|
53
|
≥54
|
AOM Vesting
Percentage
|
0
|
25
|
50
|
75
|
80
|
85
|
90
|
95
|
100
|
105
|
110
|
115
|
120
|
125
|
130
|
135
|
140
|
145
|
150
|
(a)
|
the dates specified on page 1 hereof, provided that you have not experienced a Termination of Service before such respective dates, or
|
(b)
|
your Termination of Service due to death or Disability, or
|
(c)
|
your involuntary Termination of Service, other than for Cause or unsatisfactory performance, as determined in the sole discretion of the Head of Human Resources, provided that you sign a severance agreement in the form stipulated by the Company or your Employer, within 60 days after your Termination of Service or such other time as the Company or your Employer may determine, and the severance agreement has become irrevocable, or
|
(d)
|
immediately before a Change in Control, if this Award Agreement is not assumed, converted or replaced in connection with the transaction that constitutes the Change in Control, or
|
(e)
|
your Termination of Service during the 24-month period following a Change in Control either (i) by your Employer other than for Cause or unsatisfactory performance, or (ii) by you for Good Reason.
|
(a)
|
the dates specified on page 1 hereof, provided that you have not experienced a Termination of Service before such respective dates, or
|
(b)
|
your Termination of Service due to death or Disability, or
|
(c)
|
your involuntary Termination of Service, other than for Cause or unsatisfactory performance, as determined in the sole discretion by the Head of Human Resources, provided that you sign a severance agreement in the form stipulated by the Company, within 60 days after your Termination of Service or such other time as the Company may determine, and the severance agreement has become irrevocable, or
|
(d)
|
immediately before a Change in Control, if this Award Agreement is not assumed, converted or replaced in connection with the transaction that constitutes the Change in Control, or
|
(e)
|
your Termination of Service during the 24-month period following a Change in Control either (i) by the Company other than for Cause or unsatisfactory performance, or (ii) by you for Good Reason.
|
(a)
|
the dates specified on page 1 hereof, provided that you have not experienced a Termination of Service before such respective dates, or
|
(b)
|
your Termination of Service due to death or Disability, or
|
(c)
|
your involuntary Termination of Service, other than for Cause or unsatisfactory performance, as determined in the sole discretion of the Head of Human Resources, provided that you sign a severance agreement in the form stipulated by the Company or your Employer, within 60 days after your Termination of Service or such other time as the Company or your Employer may determine, and the severance agreement has become irrevocable, or
|
(d)
|
immediately before a Change in Control, if this Award Agreement is not assumed, converted or replaced in connection with the transaction that constitutes the Change in Control, or
|
(e)
|
your Termination of Service during the 24-month period following a Change in Control either (i) by your Employer other than for Cause or unsatisfactory performance, or (ii) by you for Good Reason.
|
1.
|
Tax Obligations
. The following provision supplements Section 9 of the Agreement:
|
1)
|
I AGREE TO THE COLLECTION, USE, PROCESSING AND TRANSFER OF THE DATA AS DESCRIBED ABOVE.
|
2)
|
I AGREE TO THE PROCESSING OF MY UNIQUE IDENTIFYING INFORMATION (RESIDENT REGISTRATION NUMBER) AS DESCRIBED ABOVE.
|
(a)
|
the dates specified on page 1 hereof, provided that you have not experienced a Termination of Service before such respective dates, or
|
(b)
|
your Termination of Service due to death or Disability, or
|
(c)
|
your involuntary Termination of Service, other than for just cause under applicable Canadian law, provided that you sign a Final Release and Indemnity as part of a severance agreement within 90 days after your Termination of Service, and it has become irrevocable. In the event that the Final Release and Indemnity in a form acceptable to the Company is not signed within the 90 day period after your Termination of Service, then RSUs scheduled to vest during the applicable statutory notice period will vest on the respective vesting dates, subject to the terms and conditions of the Award Agreement. All other RSUs will be forfeited immediately upon the cessation of the statutory notice period; or
|
(d)
|
immediately before a Change in Control, if this Award Agreement is not assumed, converted or replaced in connection with the transaction that constitutes the Change in Control, or
|
(e)
|
your Termination of Service during the 24-month period following a Change in Control either (i) by your Employer other than for just cause, or (ii) by you for Good Reason.
|
(a)
|
the dates specified on page 1 hereof, provided that you have not experienced a Termination of Service before such respective dates, or
|
(b)
|
your Termination of Service due to death or Disability, or
|
(c)
|
your involuntary Termination of Service, other than for just cause under applicable Canadian law, provided that you sign a Final Release and Indemnity as part of a severance agreement within 90 days after your Termination of Service, and it has become irrevocable. In the event that the Final Release and Indemnity in a form acceptable to the Company is not signed within the 90 day period after your Termination of Service, then RSUs scheduled to vest during the applicable statutory notice period will vest on the respective vesting dates, subject to the terms and conditions of the Award Agreement. All other RSUs will be forfeited immediately upon the cessation of the statutory notice period; or
|
(d)
|
immediately before a Change in Control, if this Award Agreement is not assumed, converted or replaced in connection with the transaction that constitutes the Change in Control, or
|
(e)
|
your Termination of Service during the 24-month period following a Change in Control either (i) by your Employer other than for just cause, or (ii) by you for Good Reason.
|
(a)
|
the Determination Date, to the extent provided under the Performance Vesting Formula, if you have not experienced a Termination of Service before such date, or
|
(b)
|
as of your Termination of Service due to death or Disability, or
|
(c)
|
as of your involuntary Termination of Service, other than for Cause or unsatisfactory performance, as determined in the sole discretion by the Head of Human Resources, provided that you sign and do not revoke a severance agreement in the form stipulated by the Company within 60 days after your Termination of Service or such other time as the Company may determine and the severance agreement has become irrevocable, or
|
(d)
|
immediately before a Change in Control, if this Award Agreement is not assumed, converted or replaced in connection with the transaction that constitutes the Change in Control, or
|
(e)
|
your Termination of Service during the 24-month period following a Change in Control either (i) by the Company other than for Cause or unsatisfactory performance, or (ii) by you for Good Reason.
|
I.
|
Definitions
|
II.
|
Performance Vesting Formula
|
a.
|
On the third anniversary of the Grant Date, the number of RSUs that shall become vested and non-forfeitable shall equal 100% of the Target Total Award multiplied by the Vesting Percentage associated with the Grant Average AOM on the chart below, rounded down to the nearest full Share, as the same shall be calculated by the Committee. The Committee’s good faith calculation of the number of RSUs that become vested and non-forfeitable pursuant to the Performance Vesting Formula shall be final and binding upon you and the Company. Vesting to range from 0% to 150%; straight line interpolation to be used for actual results.
|
(a)
|
the Determination Date, to the extent provided under the Performance Vesting Formula, if you have not experienced a Termination of Service before such date, or
|
(b)
|
as of your Termination of Service due to death or Disability, or
|
(c)
|
as of your involuntary Termination of Service, other than for Cause or unsatisfactory performance, as determined in the sole discretion by the Head of Human Resources, provided that you sign and do not revoke a severance agreement in the form stipulated by the Company within 60 days after your Termination of Service or such other time as the Company may determine and the severance agreement has become irrevocable, or
|
(d)
|
immediately before a Change in Control, if this Award Agreement is not assumed, converted or replaced in connection with the transaction that constitutes the Change in Control, or
|
(e)
|
your Termination of Service during the 24-month period following a Change in Control either (i) by the Company other than for Cause or unsatisfactory performance, or (ii) by you for Good Reason.
|
I.
|
Definitions
|
II.
|
Performance Vesting Formula
|
a.
|
On the third anniversary of the Grant Date, the number of RSUs that shall become vested and non-forfeitable shall equal 100% of the Target Total Award multiplied by the Vesting Percentage associated with the Grant Average AOM on the chart below, rounded down to the nearest full Share, as the same shall be calculated by the Committee. The Committee’s good faith calculation of the number of RSUs that become vested and non-forfeitable pursuant to the Performance Vesting Formula shall be final and binding upon you and the Company. Vesting to range from 0% to 150%; straight line interpolation to be used for actual results.
|
(a)
|
the Determination Date, to the extent provided under the Performance Vesting Formula, if you have not experienced a Termination of Service before such respective dates, or
|
(b)
|
your Termination of Service due to death or Disability, or
|
(c)
|
your involuntary Termination of Service, other than for just cause under applicable Canadian law, provided that you sign a Final Release and Indemnity as part of a severance agreement in the form stipulated by the Company,
within 90 days after your Termination of Service, and it has become irrevocable. In the event that the Final Release and Indemnity in a form acceptable to the Company is not signed within the 90 day period after your Termination of Service, then RSUs scheduled to vest during the applicable statutory notice period will vest on the respective vesting dates, subject to the terms and conditions of the Award Agreement. All other RSUs will be forfeited immediately upon the cessation of the statutory notice period, or
|
(d)
|
immediately before a Change in Control, if this Award Agreement is not assumed, converted or replaced in connection with the transaction that constitutes the Change in Control, or
|
(e)
|
your Termination of Service during the 24-month period following a Change in Control either (i) by the Employer other than for just cause, or (ii) by you for Good Reason.
|
I.
|
Definitions
|
II.
|
Performance Vesting Formula
|
a.
|
On the December 15 of the second calendar year after the Grant Date, the number of RSUs that shall become vested and non-forfeitable shall equal 100% of the Target Total Award multiplied by the Vesting Percentage associated with the Grant Average AOM on the chart below, rounded down to the nearest full Share, as the same shall be calculated by the Committee. The Committee’s good faith calculation of the number of RSUs that become vested and non-forfeitable pursuant to the Performance Vesting Formula shall be final and binding upon you and the Company. Vesting to range from 0% to 150%; straight line interpolation to be used for actual results.
|
INVESCO LTD.
|
|
|
|
|
|
By: Martin L. Flanagan
|
|
|
(1)
|
After written notice, any continuing violation of this agreement or Company policies or procedures;
|
Company Name
|
|
Jurisdiction
|
Atlantic Wealth Holdings Limited
|
|
Oxfordshire
|
Atlantic Wealth Management Limited
|
|
Oxfordshire
|
Beijing HIW Ruichi Investment Management Center
|
|
China
|
Beijing HIW XinHE Investment Co., Ltd.
|
|
China
|
C M Investment Nominees Limited
|
|
Oxfordshire
|
Chancellor Citiventure 96 Partner (Cayman) Ltd.
|
|
Grand Cayman
|
Coff Associates (Cayman) Limited
|
|
Grand Cayman
|
CPCO Associates (Cayman) Limited
|
|
Grand Cayman
|
Elliot Associates Limited
|
|
Oxfordshire
|
Finemost Limited
|
|
Oxfordshire
|
Gatefold Hayes GP Limited
|
|
United Kingdom
|
Greenspruce GP Limited
|
|
United Kingdom
|
HIW China Opportunity Fund SPC
|
|
Cayman Islands
|
HIW Private Equity Investment Management Limited
|
|
Hong Kong
|
Huaneng Invesco WLR Investment Consulting Company Ltd.
|
|
China
|
HVH Immobilien- und Beteiligungs GmbH
|
|
Germany
|
HVH USA, Inc.
|
|
Delaware
|
Hyderabad IT Support Services Private Limited
|
|
India
|
India Asset Recovery Management Limited
|
|
Mauritius
|
INVESCO (B.V.I.) NOMINEES LIMITED
|
|
Virgin Islands, British
|
Invesco Administration Services Limited
|
|
Oxfordshire
|
Invesco Advisers, Inc.
|
|
Delaware
|
Invesco Asia Pacific Private Equity Investment and Fund Management Consulting (Shenzhen)
|
|
China
|
INVESCO Asset Management (Bermuda) Ltd
|
|
Bermuda
|
Invesco Asset Management (Japan) Limited
|
|
Japan
|
Invesco Asset Management Asia Limited
|
|
Hong Kong
|
Invesco Asset Management Australia (Holdings) Ltd
|
|
Victoria
|
Invesco Asset Management Deutschland GmbH
|
|
Germany
|
Invesco Asset Management (Switzerland) Limited
|
|
Switzerland
|
Invesco Asset Management (India) Private Limited
|
|
India
|
INVESCO Asset Management Ireland Holdings Limited
|
|
Ireland
|
Invesco Asset Management Limited
|
|
Oxfordshire
|
Invesco Asset Management Pacific Limited
|
|
Hong Kong
|
Invesco Asset Management SA
|
|
France
|
Invesco Asset Management Singapore Ltd
|
|
Singapore
|
Invesco Australia Limited
|
|
Victoria
|
Invesco Canada Holdings Inc.
|
|
Ontario
|
Invesco Canada Ltd.
|
|
Ontario
|
Invesco Capital Markets, Inc.
|
|
Delaware
|
Invesco (Cayman Islands) Ltd.
|
|
Cayman Islands
|
Invesco Continental Europe Services SA
|
|
Luxembourg
|
Company Name
|
|
Jurisdiction
|
Invesco Distributors, Inc.
|
|
Delaware
|
Invesco Far East Limited
|
|
Oxfordshire
|
Invesco Finance Inc.
|
|
Delaware
|
Invesco Finance PLC
|
|
Oxfordshire
|
Invesco Financial Services Ltd.
|
|
Canada
|
Invesco Fund Managers Limited
|
|
Oxfordshire
|
Invesco Gemini Associates LLC
|
|
Delaware
|
INVESCO Global Asset Management Limited
|
|
Ireland
|
Invesco Global Asset Management (Bermuda) Ltd.
|
|
Bermuda
|
Invesco Global Direct Real Estate Feeder GP Ltd.
|
|
Ontario
|
Invesco Global Direct Real Estate GP Ltd
|
|
Ontario
|
Invesco Global Investment Funds Limited
|
|
Oxfordshire
|
Invesco Global Real Estate Asia Pacific Inc.
|
|
Delaware
|
Invesco Group Limited
|
|
Oxfordshire
|
Invesco Group Services, Inc.
|
|
Delaware
|
Invesco GT Asset Management Limited
|
|
Oxfordshire
|
Invesco Holding Company Limited
|
|
Oxfordshire
|
INVESCO Holland B.V.
|
|
Netherlands
|
Invesco Hong Kong Limited
|
|
Hong Kong
|
Invesco (Hyderabad) Private Limited
|
|
India
|
Invesco Inc.
|
|
Nova Scotia
|
Invesco Insurance Agency, Inc.
|
|
Delaware
|
INVESCO International (Southern Africa) Limited
|
|
South Africa
|
Invesco International Holdings Limited
|
|
Oxfordshire
|
INVESCO International Limited
|
|
Great Britian
|
Invesco Investment Advisers LLC
|
|
Delaware
|
Invesco Investment Services, Inc.
|
|
Delaware
|
Invesco Investments (Bermuda) Ltd.
|
|
Bermuda
|
Invesco IP Holdings (Canada) Ltd
|
|
Canada
|
Invesco Investment Consulting (Beijing) Limited
|
|
China
|
Invesco Korean Real Estate Holdings LLC
|
|
Delaware
|
Invesco Ltd.
|
|
Bermuda
|
INVESCO Management GmbH
|
|
Germany
|
Invesco Management Group, Inc.
|
|
Delaware
|
INVESCO Management S.A.
|
|
Luxembourg
|
Invesco North American Holdings, Inc.
|
|
Delaware
|
Invesco Pacific Group Limited
|
|
Oxfordshire
|
Invesco Perpetual Life Limited
|
|
Oxfordshire
|
INVESCO Pacific Partner Ltd.
|
|
Bermuda
|
INVESCO Polska Sp.z.o.o.
|
|
Poland
|
Invesco PowerShares Capital Management LLC
|
|
Delaware
|
INVESCO Private Capital Investments, Inc.
|
|
Delaware
|
Invesco Private Capital, Inc.
|
|
Delaware
|
Invesco Real Estate Investment (Asia) LLC
|
|
Delaware
|
Company Name
|
|
Jurisdiction
|
Invesco Real Estate Investment Asia Pacific Limited
|
|
Hong Kong
|
Invesco Real Estate Korea
|
|
Republic of Korea
|
Invesco Real Estate Limited
|
|
United Kingdom
|
Invesco Real Estate Management S.a.r.l.
|
|
Luxembourg
|
INVESCO Real Estate s.r.o.
|
|
Czech Republic
|
Invesco Real Estate UK Residential S.a.r.l.
|
|
Luxembourg
|
Invesco Real Estate Value S.a.r.l.
|
|
Luxembourg
|
Invesco Realty Asia I, Ltd.
|
|
Cayman Island
|
INVESCO Realty, Inc.
|
|
Delaware
|
Invesco Savings Scheme (Nominees) Limited
|
|
Oxfordshire
|
Invesco Senior Secured Management, Inc.
|
|
Delaware
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Invesco Services (Bahamas) Private Limited
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Lyford Cay, Nassau
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Invesco Singapore Ptd. Ltd.
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Singapore
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Invesco Taiwan Limited
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Taiwan
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Invesco Trust Company
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Texas
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Invesco Trustee Private Ltd.
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India
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Invesco UK Holdings Limited
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Oxfordshire
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Invesco UK Limited
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Oxfordshire
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Invesco WLR Limited
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Hong Kong
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IRE AF II, Ltd.
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Cayman Island
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Invesco Real Estate Advisors (Shanghai) Ltd
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Shanghai
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IRE (China) Limited
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China
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IRE (Cayman) Limited
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Cayman Island
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IVZ Finance DAC
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Ireland
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IVZ Finance S.a.r.l.
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Luxembourg
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IVZ UK Limited
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Oxfordshire
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IVZ Mauritius Services Private Limited
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Port Louis
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Invesco Holding Company (US), Inc.
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Delaware
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James Bryant Limited
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Oxfordshire
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PCM Properties LLC
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Illinois
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Jemstep, Inc
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Delaware
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Perpetual Limited
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Oxfordshire
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Perpetual Portfolio Management Limited
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Oxfordshire
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Perpetual Unit Trust Management (Nominees) Limited
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Oxfordshire
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POCZTYLION - ARKA POWSZECHNE TOWARZYSTWO EMERYTALNE SPOLKA AKCYJNA
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Poland
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Ross CG Management LP
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New York
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Ross Expansion Associates LP
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New York
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Sermon Lane Nominees Limited
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Oxfordshire
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Sovereign G/.P. Holdings Inc.
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Delaware
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Tower Asiapac HoldCo. LLC
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Delaware
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Trimark Investments Ltd.
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Canada
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VV Immobilien Verwaltungs GmbH
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Germany
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VV Immobilien Verwaltungs und Beteiligungs GmbH
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Germany
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Company Name
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Jurisdiction
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WLR China Energy Associates Ltd
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Cayman Islands
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Wessex Winchester GP Limited
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Oxfordshire
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WLR Euro Wagon Management Ltd.
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New York
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W.L. Ross & Co. (India) LLC
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Delaware
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W.L. Ross & Co., LLC
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Delaware
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W.L. Ross Dip Management LLC
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New York
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W.L. Ross (India) Private Limited
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New York
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1.
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I have reviewed this Annual Report on Form 10-K 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)
|
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)
|
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)
|
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)
|
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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February 23, 2017
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/s/ MARTIN L. FLANAGAN
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|
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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 Annual Report on Form 10-K of Invesco Ltd.;
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2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
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3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
February 23, 2017
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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.
|
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.
|
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
February 23, 2017
|
|
/s/ MARTIN L. FLANAGAN
|
|
|
Martin L. Flanagan
|
|
|
President and Chief Executive Officer
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1.
|
the Report fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934; and
|
2.
|
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
February 23, 2017
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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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