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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
þ
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Accelerated filer
o
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Non-accelerated filer
o
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Smaller reporting company
o
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Emerging growth company
o
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Page
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•
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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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the performance of our investment products;
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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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competitive pressures in the investment management business, including consolidation, which may force us to reduce fees we earn;
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any inability to adjust our expenses quickly enough to match significant deterioration in markets;
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the effect of fluctuations in interest rates, liquidity and credit markets in the U.S. or globally, including regulatory reform of benchmarks, such as LIBOR;
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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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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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our ability to attract and retain key personnel, including investment management professionals;
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limitations or restrictions on access to distribution channels for our products;
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our ability to develop, introduce and support new investment products and services;
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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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variations in demand for our investment products or services, including termination or non-renewal of our investment management agreements;
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harm to our reputation;
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our ability to maintain our credit ratings and 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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exchange rate fluctuations, especially as against the U.S. Dollar;
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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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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 non-performance by our counterparties, third party service providers and other key vendors to fulfill their obligations;
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impairment of goodwill and other intangible assets;
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adverse results in litigation and any other regulatory or other proceedings, governmental investigations, and enforcement actions; 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, diversity of thought, fact-based decision making and execution at all levels.
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▪
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The most significant announcement during the year was our planned acquisition of Massachusetts Mutual Life Insurance Company's ("MassMutual") asset management affiliate, OppenheimerFunds. The combination with OppenheimerFunds will help accelerate Invesco’s growth initiatives, increase our scale and client relevance, and expand our comprehensive suite of differentiated investment capabilities. We will also be better positioned to deliver strong outcomes for clients, since overall performance rankings for U.S. mutual funds are consistently stronger for the combined firm than for either firm independently. Invesco entered into a definitive agreement to acquire OppenheimerFunds from MassMutual, which included $226.9 billion
(1)
of AUM at January 31, 2019. This strategic transaction will bring Invesco’s total AUM to more than $1.1 trillion, making it the 13th-largest global investment manager and sixth-largest U.S. retail investment manager
(2)
, further enhancing the company’s ability to meet client needs through its comprehensive range of high-conviction active, passive and alternative capabilities;
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▪
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Completed the acquisition of Guggenheim Investments’ exchange-traded funds (ETF) business. The acquisition strengthened Invesco’s market-leading ETF capabilities as well as the firm’s efforts to meet the needs of institutional and retail clients in the U.S. and across the globe, which will contribute further to the growth and long-term success of the business;
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▪
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Completed the acquisition of Intelliflo, the No. 1 technology platform
(3)
for financial advisors in the UK. The addition of Intelliflo builds on the 2016 acquisition of Jemstep to enable an advisor-focused digital platform that enhances the firm’s ability to meet evolving client needs;
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Further strengthened our market-leading solutions capability, leveraging one of the industry’s strongest, most experienced solutions teams to enable customized outcomes for clients;
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Continued to enhance our culture and provide development opportunities for our talented professionals across the globe;
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Invesco Great Wall Fund Management Company ("Invesco Great Wall"), the company's largest joint venture in China, is experiencing strong growth. In June, Invesco Great Wall's Jingyi Money Market Fund was selected as one of seven money market funds to be included in the money market program, Yu'E Bao, administered by Ant Financial, an affiliate of Alibaba;
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Invesco has launched a fixed income fund for investors to buy into investment opportunities driven by China's 'Belt and Road' (B&R) initiative;
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Invesco Great Wall won numerous industry awards during the Asset Management Association of China's inaugural event to mark the 20th anniversary of the establishment of China's fund industry;
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Invesco won the 2018 Multi Asset Manager of the year award, which was given at the LAPF Investment Awards held in London;
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Invesco earned an A+ rating in PRI (Principles for Responsible Investment) for its overall approach to responsible investment for second consecutive year;
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Invesco was named the best-performing ETF in the U.S. Small Cap Healthcare and Software categories;
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In 2018, Invesco was named one of the best places to work in money management by
Pensions and Investments
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Clients are demanding more from investment managers. While investment performance remains paramount, competitive pricing, 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. 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, Invesco and the industry are seeing client demand for core equities and fixed income portfolios decline as a share of global flows. Invesco is the #2 provider of smart beta AUM globally and has 60 ETFs with greater than $500 million in assets.
(1)
Invesco also has a strong lineup of alternative and multi-asset strategies supported by ongoing product development.
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We are seeing increased pressure on pricing within the asset management industry, arising from further concentration within our channel distribution partners (which increases their ability to negotiate pricing) and additional regulatory scrutiny on industry fees.
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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 with whom they work.
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Regulatory activity remains at increased levels 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 continues to proactively 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 over the long term 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 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 across its business and exploring opportunities to work with third-party technology firms to enhance our clients' investment experience. This includes the addition of Jemstep, our advisor-powered digital advice capability, to offer digital advice as a means for strengthening existing client relationships by offering a comprehensive wealth management service. The addition of Intelliflo to our existing Jemstep capability strengthens our ability to enable an advisor-focused digital platform and positions us ahead of evolving client needs.
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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 (ISA)
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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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● Investment Trusts
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● Private Capital Funds
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● Open-end Mutual Funds
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● Separately Managed Accounts (SMA)
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● Société d'investissement à Capital Variable (SICAV)
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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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566.3
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(3.3
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)%
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c
Canada
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21.7
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(19.0
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)%
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c
U.K.
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85.1
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(23.3
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)%
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c
Continental Europe
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112.5
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(11.5
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)%
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c
Asia
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102.6
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17.4
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%
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Total
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888.2
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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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385.2
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(10.7
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)%
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c
Fixed Income
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225.1
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(0.3
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)%
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c
Balanced
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50.4
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(12.7
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)%
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c
Money Market
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91.0
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15.6
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%
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c
Alternatives
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136.5
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(5.3
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)%
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Total
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888.2
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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 both existing and emerging, as well as appropriate ongoing 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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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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Uncertainties regarding geopolitical developments can produce volatility in global financial markets. As an example, the U.K. electorate voted in June 2016 to exit the European Union (Brexit), which resulted in market volatility. Although negotiations between the UK and EU regarding Brexit began in June 2017, it is still uncertain what terms may be agreed to in the final outcome and for any transitional period and what impact those terms may have on global markets. 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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Changes to United States tax, tariff and import/export regulations may have a negative effect on global economic conditions, financial markets and our business. Currently, there is significant uncertainty about the future relationship between the United States and other countries, including China, with respect to trade policies, treaties, taxes, government regulations and tariffs. It is unclear what changes may be considered or implemented and what the response will be to any such changes by other governments of such affected countries. These developments, or the perception that any of them could occur, may have a material adverse effect on global economic conditions and the stability of global financial markets, and may significantly reduce global trade and, in particular, trade between these nations and the United States. Given our strong position in Asia Pacific, we could be more adversely affected than others by such market uncertainties.
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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 effect 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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New or increased capital requirements and related regulation.
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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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Regulations impacting the standard of care a financial adviser owes to its clients including the SEC’s proposed best interests standard.
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Other changes to the distribution of investment funds and other investment products.
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In 2015, the FCA undertook a study of the asset management industry and released their final report in June 2017. The report highlighted a number of specific industry issues and proposed a number of remedies that will take place in a number of stages, including: 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 pension pooling and investment consultant regulations in the institutional segment.
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The Markets in Financial Instruments Directive II (MiFID II) in the EU, effective in January 2018, 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. Beginning in January 2018, the company has absorbed external research costs incurred for MiFID II impacting funds and client accounts in Europe. While the foregoing provisions only impact the EU, client-driven competitive pressures may cause an expansion of these principles to other business regions in which we operate, including the United States.
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An increased focus on liquidity in funds (including fixed income funds), an example of which is the SEC’s rules with respect to liquidity and liquidity risk management applicable to certain types of registered U.S. funds that took effect in 2018.
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Increased requirements to provide regulators and investors more granular detail regarding our products and services, including the SEC’s reporting modernization rule applicable to certain types of registered U.S. funds that took effect in 2018.
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Regulations pertaining to the privacy of data with respect to clients, employees and business partners. In particular, effective May 25, 2018, the EU’s General Data Protection Regulation (GDPR) has strengthened data protection rules for individuals within the EU and the export of data outside of the EU. A failure to comply with GDPR could result in fines up to 20 million Euros or 4% of our annual revenues, whichever is higher.
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Increased regulatory scrutiny on operations of private capital funds.
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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, including the United Kingdom Senior Managers and Certification Regime, which becomes effective in 2019.
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Guidelines regarding the structure and components of fund manager compensation and 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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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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Note:
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Asset Manager Index includes Affiliated Managers Group, AllianceBernstein, Ameriprise Financial, Bank of New York Mellon, BlackRock, Charles Schwab, Eaton Vance, Federated Investors, Franklin Resources, Invesco Ltd., Lazard, Legg Mason, Northern Trust, Principal Financial, State Street, TD Ameritrade, and T. Rowe Price.
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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, 2018
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12,580
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|
$
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20.99
|
|
|
—
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$
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1,643.0
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November 1 - 30, 2018
|
13,504
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|
|
$
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20.44
|
|
|
—
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|
|
$
|
1,643.0
|
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December 1 - 31, 2018
|
14,470,223
|
|
|
$
|
20.83
|
|
|
14,385,360
|
|
|
$
|
1,343.0
|
|
|
14,496,307
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|
|
|
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14,385,360
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(1)
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An aggregate of
110,947
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, 2018
.
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(2)
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At
December 31, 2018
, a balance of
$1,343.0 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
|
2018
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2017
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2016
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2015
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2014
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|||||
Operating Data:
|
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|
|
|
|
|
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|
|||||
Operating revenues
|
5,314.1
|
|
|
5,160.3
|
|
|
4,734.4
|
|
|
5,122.9
|
|
|
5,147.1
|
|
Net revenues
(1)
|
3,818.1
|
|
|
3,754.9
|
|
|
3,393.2
|
|
|
3,643.2
|
|
|
3,608.3
|
|
Operating income
|
1,204.9
|
|
|
1,279.1
|
|
|
1,152.4
|
|
|
1,344.7
|
|
|
1,270.1
|
|
Adjusted operating income
(2)
|
1,391.7
|
|
|
1,482.2
|
|
|
1,297.4
|
|
|
1,480.0
|
|
|
1,488.2
|
|
Operating margin
|
22.7
|
%
|
|
24.8
|
%
|
|
24.3
|
%
|
|
26.2
|
%
|
|
24.7
|
%
|
Adjusted operating margin
(2)
|
36.5
|
%
|
|
39.5
|
%
|
|
38.2
|
%
|
|
40.6
|
%
|
|
41.2
|
%
|
Net income attributable to Invesco Ltd.
|
882.8
|
|
|
1,127.3
|
|
|
854.2
|
|
|
968.1
|
|
|
988.1
|
|
Adjusted net income attributable to Invesco Ltd.
(3)
|
1,002.7
|
|
|
1,105.9
|
|
|
924.1
|
|
|
1,048.7
|
|
|
1,094.8
|
|
Per Share Data:
|
|
|
|
|
|
|
|
|
|
|||||
Earnings per share:
|
|
|
|
|
|
|
|
|
|
|||||
-basic
|
2.14
|
|
|
2.75
|
|
|
2.06
|
|
|
2.26
|
|
|
2.27
|
|
-diluted
|
2.14
|
|
|
2.75
|
|
|
2.06
|
|
|
2.26
|
|
|
2.27
|
|
Adjusted diluted EPS
(3)
|
2.43
|
|
|
2.70
|
|
|
2.23
|
|
|
2.44
|
|
|
2.51
|
|
Dividends declared per share
|
1.1900
|
|
|
1.1500
|
|
|
1.1100
|
|
|
1.0600
|
|
|
0.9750
|
|
Balance Sheet Data:
|
|
|
|
|
|
|
|
|
|
|||||
Total assets
|
30,978.4
|
|
|
31,668.8
|
|
|
25,734.3
|
|
|
25,073.2
|
|
|
20,450.0
|
|
Long-term debt
|
2,408.8
|
|
|
2,075.8
|
|
|
2,102.4
|
|
|
2,072.8
|
|
|
1,576.8
|
|
Debt of consolidated investment products (CIP)
|
5,226.0
|
|
|
4,799.8
|
|
|
4,403.1
|
|
|
5,437.0
|
|
|
5,149.6
|
|
Total equity attributable to Invesco Ltd.
|
8,578.8
|
|
|
8,696.1
|
|
|
7,503.8
|
|
|
7,885.3
|
|
|
8,326.0
|
|
Total permanent equity
|
8,936.2
|
|
|
8,955.6
|
|
|
7,611.8
|
|
|
8,695.7
|
|
|
9,119.8
|
|
Other Data:
|
|
|
|
|
|
|
|
|
|
|||||
Ending AUM (in billions)
|
888.2
|
|
|
937.6
|
|
|
812.9
|
|
|
775.6
|
|
|
792.4
|
|
Average AUM (in billions)
|
958.7
|
|
|
875.0
|
|
|
788.8
|
|
|
794.7
|
|
|
790.3
|
|
Headcount
|
7,459
|
|
|
7,030
|
|
|
6,790
|
|
|
6,490
|
|
|
6,264
|
|
(1)
|
Net revenues is a non-GAAP financial measure. See Item
7, “
Summary Operating Information,” footnote
1
, for the definition of this measure and the related reconciliation reference.
|
(2)
|
Adjusted operating income and adjusted operating margin are non-GAAP financial measures. See Item
7
, “Summary Operating Information,” footnote
2,
for the definition of these measures and the related reconciliation reference.
|
(3)
|
Adjusted net income attributable to Invesco Ltd. and adjusted diluted EPS are non-GAAP financial measures. See Item
7
, “Summary Operating Information,” footnote
3,
for the definition of these measures and the related reconciliation reference.
|
•
|
Results of Operations (years ended
December 31, 2018
compared to
December 31, 2017
compared to
December 31, 2016
);
|
•
|
Schedule of Non-GAAP Information;
|
•
|
Balance Sheet Discussion; and
|
•
|
Liquidity and Capital Resources.
|
$ in millions, other than per share amounts, operating margins and AUM
|
Year ended December 31,
|
|||||||
U.S. GAAP Financial Measures Summary
|
2018
|
|
2017
|
|
2016
|
|||
Operating revenues
|
5,314.1
|
|
|
5,160.3
|
|
|
4,734.4
|
|
Operating income
|
1,204.9
|
|
|
1,279.1
|
|
|
1,152.4
|
|
Operating margin
|
22.7
|
%
|
|
24.8
|
%
|
|
24.3
|
%
|
Net income attributable to Invesco Ltd.
|
882.8
|
|
|
1,127.3
|
|
|
854.2
|
|
Diluted EPS
|
2.14
|
|
|
2.75
|
|
|
2.06
|
|
|
|
|
|
|
|
|||
Non-GAAP Financial Measures Summary
|
|
|
|
|
|
|||
Net revenues
(1)
|
3,818.1
|
|
|
3,754.9
|
|
|
3,393.2
|
|
Adjusted operating income
(2)
|
1,391.7
|
|
|
1,482.2
|
|
|
1,297.4
|
|
Adjusted operating margin
(2)
|
36.5
|
%
|
|
39.5
|
%
|
|
38.2
|
%
|
Adjusted net income attributable to Invesco Ltd.
(3)
|
1,002.7
|
|
|
1,105.9
|
|
|
924.1
|
|
Adjusted diluted EPS
(3)
|
2.43
|
|
|
2.70
|
|
|
2.23
|
|
|
|
|
|
|
|
|||
Assets Under Management
|
|
|
|
|
|
|||
Ending AUM (billions)
|
888.2
|
|
|
937.6
|
|
|
812.9
|
|
Average AUM (billions)
|
958.7
|
|
|
875.0
|
|
|
788.8
|
|
(1)
|
Net revenues is a non-GAAP financial measure. Net revenues are operating revenues plus the net revenues of our joint venture investments, less third-party distribution, service and advisory expenses, plus management and performance fees earned from CIP. See "Schedule of Non-GAAP Information" for the reconciliation of operating revenues to net revenues.
|
(2)
|
Adjusted operating income and adjusted operating margin are non-GAAP financial measures. Adjusted operating margin is adjusted operating income divided by net revenues. Adjusted operating income includes operating income plus the net operating income of our joint venture investments, the operating income impact of the consolidation of investment products, transaction, integration, and restructuring adjustments, compensation expense related to market valuation changes in deferred compensation plans, and other reconciling items. See "Schedule of Non-GAAP Information," for the reconciliation of operating income to adjusted operating income.
|
(3)
|
Adjusted net income attributable to Invesco Ltd. and adjusted diluted EPS are non-GAAP financial measures. Adjusted net income attributable to Invesco Ltd. is net income attributable to Invesco Ltd. adjusted to exclude the net income of CIP, transaction, integration, and restructuring adjustments, the net income impact of deferred compensation plans and other reconciling items. Adjustments made to net income attributable to Invesco Ltd. are tax-affected 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
|
6
|
%
|
8
|
%
|
14
|
%
|
|
22
|
%
|
6
|
%
|
8
|
%
|
U.S. Growth
|
43
|
%
|
30
|
%
|
30
|
%
|
|
10
|
%
|
10
|
%
|
36
|
%
|
U.S. Value
|
44
|
%
|
32
|
%
|
41
|
%
|
|
3
|
%
|
32
|
%
|
3
|
%
|
Sector Funds
|
19
|
%
|
59
|
%
|
53
|
%
|
|
54
|
%
|
36
|
%
|
35
|
%
|
U.K.
|
12
|
%
|
7
|
%
|
83
|
%
|
|
10
|
%
|
8
|
%
|
7
|
%
|
Canadian
|
5
|
%
|
11
|
%
|
0
|
%
|
|
5
|
%
|
0
|
%
|
0
|
%
|
Asian
|
64
|
%
|
80
|
%
|
88
|
%
|
|
60
|
%
|
94
|
%
|
88
|
%
|
Continental European
|
6
|
%
|
34
|
%
|
82
|
%
|
|
25
|
%
|
37
|
%
|
82
|
%
|
Global
|
9
|
%
|
38
|
%
|
49
|
%
|
|
22
|
%
|
27
|
%
|
48
|
%
|
Global Ex U.S. and Emerging Markets
|
67
|
%
|
14
|
%
|
14
|
%
|
|
2
|
%
|
15
|
%
|
3
|
%
|
Fixed Income
|
|
|
|
|
|
|
|
||||||
Money Market
|
99
|
%
|
99
|
%
|
99
|
%
|
|
85
|
%
|
86
|
%
|
85
|
%
|
U.S. Fixed Income
|
35
|
%
|
90
|
%
|
88
|
%
|
|
33
|
%
|
69
|
%
|
87
|
%
|
Global Fixed Income
|
45
|
%
|
43
|
%
|
53
|
%
|
|
51
|
%
|
34
|
%
|
43
|
%
|
Stable Value
|
100
|
%
|
100
|
%
|
100
|
%
|
|
100
|
%
|
100
|
%
|
100
|
%
|
Other
|
|
|
|
|
|
|
|
||||||
Alternatives
|
16
|
%
|
65
|
%
|
87
|
%
|
|
40
|
%
|
46
|
%
|
80
|
%
|
Balanced
|
21
|
%
|
58
|
%
|
47
|
%
|
|
3
|
%
|
55
|
%
|
92
|
%
|
(1)
|
Excludes passive products, closed-end funds, private equity limited partnerships, non-discretionary funds, unit investment trusts, fund of funds with component funds managed by Invesco, stable value building block funds and CDOs. Certain funds and products were excluded from the analysis because of limited benchmark or peer group data. Had these been available, results may have been different. These results are preliminary and subject to revision. AUM measured in the one, three, and five year quartile rankings represents 52%, 52%, and 51% of total Invesco AUM, respectively, and AUM measured versus benchmark on a one, three, and five year basis represents 65%, 63%, and 60% of total Invesco AUM as of 12/31/18. 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 asset-weighted in USD. Rankings are as of prior quarter-end for most institutional products and prior month-end for Australian retail funds due to their late release by third parties. Rankings are calculated against all funds in each peer group. Rankings for the primary share class of the most representative fund in each composite are applied to all products within each composite. 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, 2018
|
|
December 31, 2017
|
|
December 31, 2016
|
|||
Pound Sterling ($ per £)
|
1.274
|
|
|
1.353
|
|
|
1.236
|
|
Canadian Dollar (CAD per $)
|
1.365
|
|
|
1.253
|
|
|
1.341
|
|
Japan (¥ per $)
|
109.735
|
|
|
112.645
|
|
|
116.600
|
|
Euro ($ per Euro)
|
1.143
|
|
|
1.201
|
|
|
1.054
|
|
|
Years ended December 31,
|
|||||||
Average Foreign Exchange Rates
|
2018
|
|
2017
|
|
2016
|
|||
Pound Sterling ($ per £)
|
1.336
|
|
|
1.288
|
|
|
1.356
|
|
Canadian Dollar (CAD per $)
|
1.295
|
|
|
1.297
|
|
|
1.324
|
|
Japan (¥ per $)
|
110.353
|
|
|
112.137
|
|
|
108.517
|
|
Euro ($ per Euro)
|
1.181
|
|
|
1.129
|
|
|
1.107
|
|
|
2018
|
|
2017
|
|
2016
|
|||||||||||||||||||||
$ in billions
|
Total AUM
|
|
Active
|
|
Passive
|
|
Total AUM
|
|
Active
|
|
Passive
|
|
Total AUM
|
|
Active
|
|
Passive
|
|||||||||
January 1
|
937.6
|
|
|
738.6
|
|
|
199.0
|
|
|
812.9
|
|
|
668.5
|
|
|
144.4
|
|
|
775.6
|
|
|
636.5
|
|
|
139.1
|
|
Long-term inflows
|
209.8
|
|
|
139.6
|
|
|
70.2
|
|
|
183.3
|
|
|
140.4
|
|
|
42.9
|
|
|
177.8
|
|
|
141.9
|
|
|
35.9
|
|
Long-term outflows
|
(248.8
|
)
|
|
(176.8
|
)
|
|
(72.0
|
)
|
|
(178.8
|
)
|
|
(140.6
|
)
|
|
(38.2
|
)
|
|
(161.3
|
)
|
|
(135.0
|
)
|
|
(26.3
|
)
|
Long-term net flows
|
(39.0
|
)
|
|
(37.2
|
)
|
|
(1.8
|
)
|
|
4.5
|
|
|
(0.2
|
)
|
|
4.7
|
|
|
16.5
|
|
|
6.9
|
|
|
9.6
|
|
Net flows in non-management fee earning AUM
|
2.5
|
|
|
—
|
|
|
2.5
|
|
|
3.0
|
|
|
—
|
|
|
3.0
|
|
|
(6.4
|
)
|
|
—
|
|
|
(6.4
|
)
|
Net flows in institutional money market funds
|
7.6
|
|
|
7.6
|
|
|
—
|
|
|
(3.2
|
)
|
|
(3.2
|
)
|
|
—
|
|
|
12.8
|
|
|
13.1
|
|
|
(0.3
|
)
|
Total net flows
|
(28.9
|
)
|
|
(29.6
|
)
|
|
0.7
|
|
|
4.3
|
|
|
(3.4
|
)
|
|
7.7
|
|
|
22.9
|
|
|
20.0
|
|
|
2.9
|
|
Reinvested distributions
(1)
|
11.4
|
|
|
11.4
|
|
|
—
|
|
|
7.0
|
|
|
7.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Market gains and losses
(1)
|
(67.0
|
)
|
|
(52.2
|
)
|
|
(14.8
|
)
|
|
66.0
|
|
|
45.4
|
|
|
20.6
|
|
|
37.7
|
|
|
32.1
|
|
|
5.6
|
|
Transfers
(4)
|
—
|
|
|
0.5
|
|
|
(0.5
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Acquisitions/dispositions
(5)
|
47.6
|
|
|
10.5
|
|
|
37.1
|
|
|
26.0
|
|
|
—
|
|
|
26.0
|
|
|
(1.2
|
)
|
|
2.0
|
|
|
(3.2
|
)
|
Foreign currency translation
|
(12.5
|
)
|
|
(12.0
|
)
|
|
(0.5
|
)
|
|
21.4
|
|
|
21.1
|
|
|
0.3
|
|
|
(22.1
|
)
|
|
(22.1
|
)
|
|
—
|
|
December 31
|
888.2
|
|
|
667.2
|
|
|
221.0
|
|
|
937.6
|
|
|
738.6
|
|
|
199.0
|
|
|
812.9
|
|
|
668.5
|
|
|
144.4
|
|
Average AUM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Average long-term AUM
|
785.5
|
|
|
646.8
|
|
|
138.7
|
|
|
721.5
|
|
|
632.6
|
|
|
88.9
|
|
|
652.1
|
|
|
586.9
|
|
|
65.2
|
|
Average AUM
|
958.7
|
|
|
726.9
|
|
|
231.8
|
|
|
875.0
|
|
|
705.3
|
|
|
169.7
|
|
|
788.8
|
|
|
653.4
|
|
|
135.4
|
|
Revenue yield
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Gross revenue yield on AUM
(2)
|
56.3
|
|
|
69.9
|
|
|
14.9
|
|
|
59.6
|
|
|
70.1
|
|
|
16.3
|
|
|
60.7
|
|
|
70.3
|
|
|
15.3
|
|
Gross revenue yield on AUM before performance fees
(2)
|
55.7
|
|
|
69.1
|
|
|
14.9
|
|
|
58.2
|
|
|
68.5
|
|
|
16.3
|
|
|
60.2
|
|
|
69.6
|
|
|
15.3
|
|
Net revenue yield on AUM
(3)
|
39.8
|
|
|
47.8
|
|
|
14.9
|
|
|
42.9
|
|
|
49.3
|
|
|
16.3
|
|
|
43.0
|
|
|
48.8
|
|
|
15.3
|
|
Net revenue yield on AUM before performance fees
(3)
|
39.2
|
|
|
47.0
|
|
|
14.9
|
|
|
41.5
|
|
|
47.6
|
|
|
16.3
|
|
|
42.4
|
|
|
48.1
|
|
|
15.3
|
|
(1)
|
In 2018, reinvested distributions are shown in a separate line in the AUM tables. For periods prior to the third quarter of 2017, reinvested distributions are included in market gains and losses.
|
(2)
|
Gross revenue yield on AUM is equal to annualized total operating revenues divided by average AUM, excluding Invesco Great Wall AUM. Prior to the third quarter 2018, management reflected its interests in Invesco Great Wall on a proportional consolidation basis, which was consistent with the presentation of our share of the AUM from these investments. Given the company's influence on Invesco Great Wall, a change in regulation allowing increased foreign ownership, and reaching oral agreement in principle to obtain majority stake of the joint venture, the company began reporting 100% of the flows and AUM for Invesco Great Wall beginning in the third quarter of 2018. Our share of the average AUM in
2018
for our JVs in China was
$16.2 billion
(
2017
:
$8.5 billion
,
2016
:
$9.2 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, the gross revenue yield measure is not considered representative of the company's true effective fee rate from AUM.
|
(3)
|
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.
|
(4)
|
During 2018, a net $0.5 billion of passive ETF AUM were reclassified to active AUM.
|
(5)
|
As of July 1, 2018, we began including 100% of Invesco Great Wall, which added $9.5 billion in AUM in 2018. The acquisition of Guggenheim Investments' ETF business on April 6, 2018 added $38.1 billion in AUM in 2018. The acquisition of the European ETF business added
$26.0 billion
in AUM in 2017.
|
$ in billions
|
Total
|
|
Retail
|
|
Institutional
|
|||
December 31, 2017
|
937.6
|
|
|
637.0
|
|
|
300.6
|
|
Long-term inflows
|
209.8
|
|
|
158.8
|
|
|
51.0
|
|
Long-term outflows
|
(248.8
|
)
|
|
(194.1
|
)
|
|
(54.7
|
)
|
Long-term net flows
|
(39.0
|
)
|
|
(35.3
|
)
|
|
(3.7
|
)
|
Net flows in non-management fee earning AUM
|
2.5
|
|
|
2.7
|
|
|
(0.2
|
)
|
Net flows in institutional money market funds
|
7.6
|
|
|
9.0
|
|
|
(1.4
|
)
|
Total net flows
|
(28.9
|
)
|
|
(23.6
|
)
|
|
(5.3
|
)
|
Reinvested distributions
(2)
|
11.4
|
|
|
11.4
|
|
|
—
|
|
Market gains and losses
(2)
|
(67.0
|
)
|
|
(62.0
|
)
|
|
(5.0
|
)
|
Transfers
(4)
|
—
|
|
|
(29.8
|
)
|
|
29.8
|
|
Acquisitions/dispositions, net
(7)
|
47.6
|
|
|
42.6
|
|
|
5.0
|
|
Foreign currency translation
|
(12.5
|
)
|
|
(8.9
|
)
|
|
(3.6
|
)
|
December 31, 2018
|
888.2
|
|
|
566.7
|
|
|
321.5
|
|
|
|
|
|
|
|
|||
December 31, 2016
|
812.9
|
|
|
526.5
|
|
|
286.4
|
|
Long-term inflows
|
183.3
|
|
|
149.8
|
|
|
33.5
|
|
Long-term outflows
|
(178.8
|
)
|
|
(144.4
|
)
|
|
(34.4
|
)
|
Long-term net flows
|
4.5
|
|
|
5.4
|
|
|
(0.9
|
)
|
Net flows in non-management fee earning AUM
|
3.0
|
|
|
0.1
|
|
|
2.9
|
|
Net flows in institutional money market funds
|
(3.2
|
)
|
|
(3.2
|
)
|
|
—
|
|
Total net flows
|
4.3
|
|
|
2.3
|
|
|
2.0
|
|
Reinvested distributions
(2)
|
7.0
|
|
|
7.0
|
|
|
—
|
|
Market gains and losses
(2)
|
66.0
|
|
|
58.5
|
|
|
7.5
|
|
Acquisitions/dispositions, net
(7)
|
26.0
|
|
|
26.0
|
|
|
—
|
|
Foreign currency translation
|
21.4
|
|
|
16.7
|
|
|
4.7
|
|
December 31, 2017
|
937.6
|
|
|
637.0
|
|
|
300.6
|
|
|
|
|
|
|
|
|||
December 31, 2015
|
775.6
|
|
|
514.8
|
|
|
260.8
|
|
Long-term inflows
|
177.8
|
|
|
137.0
|
|
|
40.8
|
|
Long-term outflows
|
(161.3
|
)
|
|
(132.6
|
)
|
|
(28.7
|
)
|
Long-term net flows
|
16.5
|
|
|
4.4
|
|
|
12.1
|
|
Net flows in non-management fee earning AUM
|
(6.4
|
)
|
|
(5.3
|
)
|
|
(1.1
|
)
|
Net flows in institutional money market funds
|
12.8
|
|
|
—
|
|
|
12.8
|
|
Total net flows
|
22.9
|
|
|
(0.9
|
)
|
|
23.8
|
|
Market gains and losses
(2)
|
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
|
|
$ in billions
|
Total
|
|
Retail
|
|
Institutional
|
|||
December 31, 2017
|
199.0
|
|
|
182.0
|
|
|
17.0
|
|
Long-term inflows
|
70.2
|
|
|
70.2
|
|
|
—
|
|
Long-term outflows
|
(72.0
|
)
|
|
(72.0
|
)
|
|
—
|
|
Long-term net flows
|
(1.8
|
)
|
|
(1.8
|
)
|
|
—
|
|
Net flows in non-management fee earning AUM
|
2.5
|
|
|
2.7
|
|
|
(0.2
|
)
|
Net flows in institutional money market funds
|
—
|
|
|
—
|
|
|
—
|
|
Total net flows
|
0.7
|
|
|
0.9
|
|
|
(0.2
|
)
|
Market gains and losses
|
(14.8
|
)
|
|
(14.4
|
)
|
|
(0.4
|
)
|
Transfers
(4)
|
(0.5
|
)
|
|
(0.4
|
)
|
|
(0.1
|
)
|
Acquisitions/dispositions, net
(7)
|
37.1
|
|
|
37.1
|
|
|
—
|
|
Foreign currency translation
|
(0.5
|
)
|
|
(0.6
|
)
|
|
0.1
|
|
December 31, 2018
|
221.0
|
|
|
204.6
|
|
|
16.4
|
|
|
|
|
|
|
|
|||
December 31, 2016
|
144.4
|
|
|
128.8
|
|
|
15.6
|
|
Long-term inflows
|
42.9
|
|
|
42.9
|
|
|
—
|
|
Long-term outflows
|
(38.2
|
)
|
|
(37.0
|
)
|
|
(1.2
|
)
|
Long-term net flows
|
4.7
|
|
|
5.9
|
|
|
(1.2
|
)
|
Net flows in non-management fee earning AUM
|
3.0
|
|
|
0.1
|
|
|
2.9
|
|
Net flows in institutional money market funds
|
—
|
|
|
—
|
|
|
—
|
|
Total net flows
|
7.7
|
|
|
6.0
|
|
|
1.7
|
|
Market gains and losses
|
20.6
|
|
|
21.0
|
|
|
(0.4
|
)
|
Acquisitions/dispositions, net
(7)
|
26.0
|
|
|
26.0
|
|
|
—
|
|
Foreign currency translation
|
0.3
|
|
|
0.2
|
|
|
0.1
|
|
December 31, 2017
|
199.0
|
|
|
182.0
|
|
|
17.0
|
|
|
|
|
|
|
|
|||
December 31, 2015
|
139.1
|
|
|
118.7
|
|
|
20.4
|
|
Long-term inflows
|
35.9
|
|
|
35.9
|
|
|
—
|
|
Long-term outflows
|
(26.3
|
)
|
|
(26.2
|
)
|
|
(0.1
|
)
|
Long-term net flows
|
9.6
|
|
|
9.7
|
|
|
(0.1
|
)
|
Net flows in non-management fee earning AUM
|
(6.4
|
)
|
|
(5.3
|
)
|
|
(1.1
|
)
|
Net flows in institutional money market funds
|
(0.3
|
)
|
|
—
|
|
|
(0.3
|
)
|
Total net flows
|
2.9
|
|
|
4.4
|
|
|
(1.5
|
)
|
Market gains and losses
|
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
|
|
$ in billions
|
Total
|
|
Equity
|
|
Fixed Income
|
|
Balanced
|
|
Money Market
(5)
|
|
Alternatives
|
||||||
December 31, 2017
|
937.6
|
|
|
431.2
|
|
|
225.8
|
|
|
57.7
|
|
|
78.7
|
|
|
144.2
|
|
Long-term inflows
|
209.8
|
|
|
99.9
|
|
|
54.8
|
|
|
12.2
|
|
|
7.7
|
|
|
35.2
|
|
Long-term outflows
|
(248.8
|
)
|
|
(130.5
|
)
|
|
(60.7
|
)
|
|
(14.2
|
)
|
|
(5.6
|
)
|
|
(37.8
|
)
|
Long-term net flows
|
(39.0
|
)
|
|
(30.6
|
)
|
|
(5.9
|
)
|
|
(2.0
|
)
|
|
2.1
|
|
|
(2.6
|
)
|
Net flows in non-management fee earning AUM
|
2.5
|
|
|
3.1
|
|
|
(0.6
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
Net flows in institutional money market funds
|
7.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7.6
|
|
|
—
|
|
Total net flows
|
(28.9
|
)
|
|
(27.5
|
)
|
|
(6.5
|
)
|
|
(2.0
|
)
|
|
9.7
|
|
|
(2.6
|
)
|
Reinvested distributions
(2)
|
11.4
|
|
|
9.6
|
|
|
1.1
|
|
|
0.2
|
|
|
—
|
|
|
0.5
|
|
Market gains and losses
(2)
|
(67.0
|
)
|
|
(52.8
|
)
|
|
(5.1
|
)
|
|
(4.6
|
)
|
|
0.7
|
|
|
(5.2
|
)
|
Transfers
(4)
|
—
|
|
|
(0.4
|
)
|
|
0.2
|
|
|
0.2
|
|
|
—
|
|
|
—
|
|
Acquisitions/dispositions, net
(7)
|
47.6
|
|
|
31.2
|
|
|
11.5
|
|
|
1.0
|
|
|
2.4
|
|
|
1.5
|
|
Foreign currency translation
|
(12.5
|
)
|
|
(6.1
|
)
|
|
(1.9
|
)
|
|
(2.1
|
)
|
|
(0.5
|
)
|
|
(1.9
|
)
|
December 31, 2018
|
888.2
|
|
|
385.2
|
|
|
225.1
|
|
|
50.4
|
|
|
91.0
|
|
|
136.5
|
|
Average AUM
|
958.7
|
|
|
440.7
|
|
|
231.1
|
|
|
57.3
|
|
|
85.8
|
|
|
143.9
|
|
% of total average AUM
|
100.0
|
%
|
|
46.0
|
%
|
|
24.1
|
%
|
|
6.0
|
%
|
|
8.9
|
%
|
|
15.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
December 31, 2016
|
812.9
|
|
|
364.1
|
|
|
201.7
|
|
|
46.8
|
|
|
78.3
|
|
|
122.0
|
|
Long-term inflows
|
183.3
|
|
|
81.8
|
|
|
47.1
|
|
|
13.0
|
|
|
4.1
|
|
|
37.3
|
|
Long-term outflows
|
(178.8
|
)
|
|
(99.2
|
)
|
|
(38.9
|
)
|
|
(9.8
|
)
|
|
(3.9
|
)
|
|
(27.0
|
)
|
Long-term net flows
|
4.5
|
|
|
(17.4
|
)
|
|
8.2
|
|
|
3.2
|
|
|
0.2
|
|
|
10.3
|
|
Net flows in non-management fee earning AUM
|
3.0
|
|
|
0.5
|
|
|
2.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net flows in institutional money market funds
|
(3.2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3.2
|
)
|
|
—
|
|
Total net flows
|
4.3
|
|
|
(16.9
|
)
|
|
10.7
|
|
|
3.2
|
|
|
(3.0
|
)
|
|
10.3
|
|
Reinvested distributions
(2)
|
7.0
|
|
|
6.1
|
|
|
0.4
|
|
|
0.4
|
|
|
—
|
|
|
0.1
|
|
Market gains and losses
(2)
|
66.0
|
|
|
56.0
|
|
|
5.0
|
|
|
3.7
|
|
|
0.1
|
|
|
1.2
|
|
Transfers
(4)
|
—
|
|
|
—
|
|
|
(3.0
|
)
|
|
—
|
|
|
3.0
|
|
|
—
|
|
Acquisitions/dispositions, net
(7)
|
26.0
|
|
|
12.2
|
|
|
7.8
|
|
|
—
|
|
|
—
|
|
|
6.0
|
|
Foreign currency translation
|
21.4
|
|
|
9.7
|
|
|
3.2
|
|
|
3.6
|
|
|
0.3
|
|
|
4.6
|
|
December 31, 2017
|
937.6
|
|
|
431.2
|
|
|
225.8
|
|
|
57.7
|
|
|
78.7
|
|
|
144.2
|
|
Average AUM
|
875.0
|
|
|
398.2
|
|
|
213.0
|
|
|
52.3
|
|
|
78.6
|
|
|
132.9
|
|
% of total average AUM
|
100.0
|
%
|
|
45.5
|
%
|
|
24.3
|
%
|
|
6.0
|
%
|
|
9.0
|
%
|
|
15.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
December 31, 2015
|
775.6
|
|
|
370.9
|
|
|
187.9
|
|
|
48.1
|
|
|
64.6
|
|
|
104.1
|
|
Long-term inflows
|
177.8
|
|
|
74.6
|
|
|
48.0
|
|
|
9.8
|
|
|
4.0
|
|
|
41.4
|
|
Long-term outflows
|
(161.3
|
)
|
|
(93.0
|
)
|
|
(31.6
|
)
|
|
(11.5
|
)
|
|
(3.8
|
)
|
|
(21.4
|
)
|
Long-term net flows
|
16.5
|
|
|
(18.4
|
)
|
|
16.4
|
|
|
(1.7
|
)
|
|
0.2
|
|
|
20.0
|
|
Net flows in non-management fee earning AUM
|
(6.4
|
)
|
|
(5.1
|
)
|
|
(1.3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
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
(2)
|
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
|
|
|
114.4
|
|
% of total average AUM
|
100.0
|
%
|
|
45.2
|
%
|
|
24.9
|
%
|
|
6.0
|
%
|
|
9.4
|
%
|
|
14.5
|
%
|
$ in billions
|
Total
|
|
Equity
|
|
Fixed Income
|
|
Balanced
|
|
Money Market
|
|
Alternatives
|
||||||
December 31, 2017
|
199.0
|
|
|
128.4
|
|
|
57.3
|
|
|
—
|
|
|
—
|
|
|
13.3
|
|
Long-term inflows
|
70.2
|
|
|
48.5
|
|
|
13.5
|
|
|
—
|
|
|
—
|
|
|
8.2
|
|
Long-term outflows
|
(72.0
|
)
|
|
(46.2
|
)
|
|
(17.7
|
)
|
|
—
|
|
|
—
|
|
|
(8.1
|
)
|
Long-term net flows
|
(1.8
|
)
|
|
2.3
|
|
|
(4.2
|
)
|
|
—
|
|
|
—
|
|
|
0.1
|
|
Net flows in non-management fee earning AUM
|
2.5
|
|
|
3.1
|
|
|
(0.6
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
Net flows in institutional money market funds
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Total net flows
|
0.7
|
|
|
5.4
|
|
|
(4.8
|
)
|
|
—
|
|
|
—
|
|
|
0.1
|
|
Market gains and losses
|
(14.8
|
)
|
|
(10.5
|
)
|
|
(2.9
|
)
|
|
—
|
|
|
—
|
|
|
(1.4
|
)
|
Transfers
(4)
|
(0.5
|
)
|
|
0.4
|
|
|
0.3
|
|
|
—
|
|
|
—
|
|
|
(1.2
|
)
|
Acquisitions/dispositions, net
(7)
|
37.1
|
|
|
27.1
|
|
|
8.7
|
|
|
—
|
|
|
—
|
|
|
1.3
|
|
Foreign currency translation
|
(0.5
|
)
|
|
(0.3
|
)
|
|
(0.3
|
)
|
|
—
|
|
|
—
|
|
|
0.1
|
|
December 31, 2018
|
221.0
|
|
|
150.5
|
|
|
58.3
|
|
|
—
|
|
|
—
|
|
|
12.2
|
|
Average AUM
|
231.8
|
|
|
156.1
|
|
|
61.7
|
|
|
—
|
|
|
—
|
|
|
14.0
|
|
% of total average AUM
|
100.0
|
%
|
|
67.3
|
%
|
|
26.6
|
%
|
|
—
|
%
|
|
—
|
%
|
|
6.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
December 31, 2016
|
144.4
|
|
|
93.5
|
|
|
41.7
|
|
|
—
|
|
|
—
|
|
|
9.2
|
|
Long-term inflows
|
42.9
|
|
|
26.3
|
|
|
12.6
|
|
|
—
|
|
|
—
|
|
|
4.0
|
|
Long-term outflows
|
(38.2
|
)
|
|
(25.3
|
)
|
|
(7.3
|
)
|
|
—
|
|
|
—
|
|
|
(5.6
|
)
|
Long-term net flows
|
4.7
|
|
|
1.0
|
|
|
5.3
|
|
|
—
|
|
|
—
|
|
|
(1.6
|
)
|
Net flows in non-management fee earning AUM
|
3.0
|
|
|
0.5
|
|
|
2.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net flows in institutional money market funds
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Total net flows
|
7.7
|
|
|
1.5
|
|
|
7.8
|
|
|
—
|
|
|
—
|
|
|
(1.6
|
)
|
Market gains and losses
|
20.6
|
|
|
21.1
|
|
|
(0.1
|
)
|
|
—
|
|
|
—
|
|
|
(0.4
|
)
|
Acquisitions/dispositions, net
(7)
|
26.0
|
|
|
12.2
|
|
|
7.8
|
|
|
—
|
|
|
—
|
|
|
6.0
|
|
Foreign currency translation
|
0.3
|
|
|
0.1
|
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
December 31, 2017
|
199.0
|
|
|
128.4
|
|
|
57.3
|
|
|
—
|
|
|
—
|
|
|
13.3
|
|
Average AUM
|
169.7
|
|
|
109.8
|
|
|
50.1
|
|
|
—
|
|
|
—
|
|
|
9.8
|
|
% of total average AUM
|
100.0
|
%
|
|
64.7
|
%
|
|
29.5
|
%
|
|
—
|
%
|
|
—
|
%
|
|
5.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
December 31, 2015
|
139.1
|
|
|
91.0
|
|
|
38.6
|
|
|
—
|
|
|
0.4
|
|
|
9.1
|
|
Long-term inflows
|
35.9
|
|
|
22.0
|
|
|
10.3
|
|
|
—
|
|
|
—
|
|
|
3.6
|
|
Long-term outflows
|
(26.3
|
)
|
|
(20.2
|
)
|
|
(2.7
|
)
|
|
—
|
|
|
—
|
|
|
(3.4
|
)
|
Long-term net flows
|
9.6
|
|
|
1.8
|
|
|
7.6
|
|
|
—
|
|
|
—
|
|
|
0.2
|
|
Net flows in non-management fee earning AUM
|
(6.4
|
)
|
|
(5.1
|
)
|
|
(1.3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
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
|
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
|
%
|
|
64.6
|
%
|
|
28.7
|
%
|
|
—
|
%
|
|
0.1
|
%
|
|
6.6
|
%
|
$ in billions
|
Total
|
|
U.S.
|
|
Canada
|
|
U.K.
|
|
Continental Europe
|
|
Asia
|
||||||
December 31, 2017
|
937.6
|
|
|
585.4
|
|
|
26.8
|
|
|
110.9
|
|
|
127.1
|
|
|
87.4
|
|
Long-term inflows
|
209.8
|
|
|
104.4
|
|
|
4.7
|
|
|
12.7
|
|
|
59.2
|
|
|
28.8
|
|
Long-term outflows
|
(248.8
|
)
|
|
(134.0
|
)
|
|
(5.6
|
)
|
|
(23.9
|
)
|
|
(60.8
|
)
|
|
(24.5
|
)
|
Long-term net flows
|
(39.0
|
)
|
|
(29.6
|
)
|
|
(0.9
|
)
|
|
(11.2
|
)
|
|
(1.6
|
)
|
|
4.3
|
|
Net flows in non-management fee earning AUM
|
2.5
|
|
|
2.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net flows in institutional money market funds
|
7.6
|
|
|
1.2
|
|
|
—
|
|
|
(2.2
|
)
|
|
(0.3
|
)
|
|
8.9
|
|
Total net flows
|
(28.9
|
)
|
|
(25.9
|
)
|
|
(0.9
|
)
|
|
(13.4
|
)
|
|
(1.9
|
)
|
|
13.2
|
|
Reinvested distributions
(2)
|
11.4
|
|
|
10.8
|
|
|
—
|
|
|
0.6
|
|
|
—
|
|
|
—
|
|
Market gains and losses
(2)
|
(67.0
|
)
|
|
(42.1
|
)
|
|
(2.1
|
)
|
|
(8.2
|
)
|
|
(8.6
|
)
|
|
(6.0
|
)
|
Acquisitions/dispositions, net
(7)
|
47.6
|
|
|
38.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9.5
|
|
Foreign currency translation
|
(12.5
|
)
|
|
—
|
|
|
(2.1
|
)
|
|
(4.8
|
)
|
|
(4.1
|
)
|
|
(1.5
|
)
|
December 31, 2018
|
888.2
|
|
|
566.3
|
|
|
21.7
|
|
|
85.1
|
|
|
112.5
|
|
|
102.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
December 31, 2016
|
812.9
|
|
|
539.5
|
|
|
23.1
|
|
|
98.2
|
|
|
72.1
|
|
|
80.0
|
|
Long-term inflows
|
183.3
|
|
|
88.4
|
|
|
4.3
|
|
|
16.3
|
|
|
51.1
|
|
|
23.2
|
|
Long-term outflows
|
(178.8
|
)
|
|
(96.4
|
)
|
|
(4.6
|
)
|
|
(17.6
|
)
|
|
(38.3
|
)
|
|
(21.9
|
)
|
Long-term net flows
|
4.5
|
|
|
(8.0
|
)
|
|
(0.3
|
)
|
|
(1.3
|
)
|
|
12.8
|
|
|
1.3
|
|
Net flows in non-management fee earning AUM
|
3.0
|
|
|
3.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net flows in institutional money market funds
|
(3.2
|
)
|
|
(0.9
|
)
|
|
—
|
|
|
(1.4
|
)
|
|
0.3
|
|
|
(1.2
|
)
|
Total net flows
|
4.3
|
|
|
(5.9
|
)
|
|
(0.3
|
)
|
|
(2.7
|
)
|
|
13.1
|
|
|
0.1
|
|
Reinvested distributions
(2)
|
7.0
|
|
|
7.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Market gains and losses
(2)
|
66.0
|
|
|
44.7
|
|
|
2.2
|
|
|
7.0
|
|
|
7.9
|
|
|
4.2
|
|
Acquisitions/dispositions, net
(7)
|
26.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
26.0
|
|
|
—
|
|
Foreign currency translation
|
21.4
|
|
|
0.1
|
|
|
1.8
|
|
|
8.4
|
|
|
8.0
|
|
|
3.1
|
|
December 31, 2017
|
937.6
|
|
|
585.4
|
|
|
26.8
|
|
|
110.9
|
|
|
127.1
|
|
|
87.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
December 31, 2015
|
775.6
|
|
|
510.7
|
|
|
21.7
|
|
|
104.2
|
|
|
75.4
|
|
|
63.6
|
|
Long-term inflows
|
177.8
|
|
|
101.7
|
|
|
3.5
|
|
|
15.7
|
|
|
25.9
|
|
|
31.0
|
|
Long-term outflows
|
(161.3
|
)
|
|
(95.8
|
)
|
|
(4.6
|
)
|
|
(16.2
|
)
|
|
(29.2
|
)
|
|
(15.5
|
)
|
Long-term net flows
|
16.5
|
|
|
5.9
|
|
|
(1.1
|
)
|
|
(0.5
|
)
|
|
(3.3
|
)
|
|
15.5
|
|
Net flows in non-management fee earning AUM
|
(6.4
|
)
|
|
(6.4
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
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
(2)
|
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
|
|
$ in billions
|
Total
|
|
U.S.
|
|
Canada
|
|
U.K.
|
|
Continental Europe
|
|
Asia
|
||||||
December 31, 2017
|
199.0
|
|
|
167.3
|
|
|
0.6
|
|
|
—
|
|
|
30.0
|
|
|
1.1
|
|
Long-term inflows
|
70.2
|
|
|
42.5
|
|
|
0.2
|
|
|
—
|
|
|
27.1
|
|
|
0.4
|
|
Long-term outflows
|
(72.0
|
)
|
|
(44.8
|
)
|
|
(0.2
|
)
|
|
—
|
|
|
(26.7
|
)
|
|
(0.3
|
)
|
Long-term net flows
|
(1.8
|
)
|
|
(2.3
|
)
|
|
—
|
|
|
—
|
|
|
0.4
|
|
|
0.1
|
|
Net flows in non-management fee earning AUM
|
2.5
|
|
|
2.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net flows in institutional money market funds
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Total net flows
|
0.7
|
|
|
0.2
|
|
|
—
|
|
|
—
|
|
|
0.4
|
|
|
0.1
|
|
Market gains and losses
|
(15.3
|
)
|
|
(14.1
|
)
|
|
—
|
|
|
—
|
|
|
(1.1
|
)
|
|
(0.1
|
)
|
Acquisitions/dispositions, net
(7)
|
37.1
|
|
|
36.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.2
|
|
Foreign currency translation
|
(0.5
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.5
|
)
|
|
—
|
|
December 31, 2018
|
221.0
|
|
|
190.3
|
|
|
0.6
|
|
|
—
|
|
|
28.8
|
|
|
1.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
December 31, 2016
|
144.4
|
|
|
139.9
|
|
|
0.5
|
|
|
—
|
|
|
1.9
|
|
|
2.1
|
|
Long-term inflows
|
42.9
|
|
|
30.2
|
|
|
0.3
|
|
|
—
|
|
|
12.4
|
|
|
—
|
|
Long-term outflows
|
(38.2
|
)
|
|
(25.0
|
)
|
|
(0.1
|
)
|
|
—
|
|
|
(11.9
|
)
|
|
(1.2
|
)
|
Long-term net flows
|
4.7
|
|
|
5.2
|
|
|
0.2
|
|
|
—
|
|
|
0.5
|
|
|
(1.2
|
)
|
Net flows in non-management fee earning AUM
|
3.0
|
|
|
3.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net flows in institutional money market funds
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Total net flows
|
7.7
|
|
|
8.2
|
|
|
0.2
|
|
|
—
|
|
|
0.5
|
|
|
(1.2
|
)
|
Market gains and losses
|
20.6
|
|
|
19.2
|
|
|
(0.1
|
)
|
|
—
|
|
|
1.4
|
|
|
0.1
|
|
Acquisitions/dispositions, net
(7)
|
26.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
26.0
|
|
|
—
|
|
Foreign currency translation
|
0.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.2
|
|
|
0.1
|
|
December 31, 2017
|
199.0
|
|
|
167.3
|
|
|
0.6
|
|
|
—
|
|
|
30.0
|
|
|
1.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
December 31, 2015
|
139.1
|
|
|
134.4
|
|
|
0.4
|
|
|
—
|
|
|
1.9
|
|
|
2.4
|
|
Long-term inflows
|
35.9
|
|
|
35.1
|
|
|
0.3
|
|
|
—
|
|
|
0.5
|
|
|
—
|
|
Long-term outflows
|
(26.3
|
)
|
|
(25.4
|
)
|
|
(0.2
|
)
|
|
—
|
|
|
(0.7
|
)
|
|
—
|
|
Long-term net flows
|
9.6
|
|
|
9.7
|
|
|
0.1
|
|
|
—
|
|
|
(0.2
|
)
|
|
—
|
|
Net flows in non-management fee earning AUM
|
(6.4
|
)
|
|
(6.4
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
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
|
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
|
|
(2)
|
In 2018, reinvested distributions are shown in a separate line in the AUM tables. For periods prior to the third quarter of 2017, reinvested distributions are included in market gains and losses.
|
(3)
|
Asset classes are descriptive groupings of AUM by common type of underlying investments.
|
(5)
|
Ending Money Market AUM includes
$83.7 billion
in institutional money market AUM as of December 31, 2018.
|
(6)
|
Client domicile disclosure groups AUM by the domicile of the underlying clients.
|
(7)
|
The acquisition of Guggenheim Investments' ETF business on April 6, 2018 added $38.1 billion in AUM during the second quarter. As of July 1, 2018, we began including 100% of Invesco Great Wall, which added $9.5 billion in AUM during the third quarter. The acquisition of the European ETF business added
$26.0 billion
in AUM in 2017.
|
|
|
|
|
|
|
|
Variance
|
|||||||||||||
|
Years ended December 31,
|
|
2018 vs 2017
|
|
2017 vs 2016
|
|||||||||||||||
$ in millions
|
2018
|
|
2017
|
|
2016
|
|
$ Change
|
|
% Change
|
|
$ Change
|
|
% Change
|
|||||||
Investment management fees
|
4,082.3
|
|
|
4,126.6
|
|
|
3,773.1
|
|
|
(44.3
|
)
|
|
(1.1
|
)%
|
|
353.5
|
|
|
9.4
|
%
|
Service and distribution fees
|
968.5
|
|
|
852.8
|
|
|
823.6
|
|
|
115.7
|
|
|
13.6
|
%
|
|
29.2
|
|
|
3.5
|
%
|
Performance fees
|
56.9
|
|
|
113.3
|
|
|
44.3
|
|
|
(56.4
|
)
|
|
(49.8
|
)%
|
|
69.0
|
|
|
155.8
|
%
|
Other
|
206.4
|
|
|
67.6
|
|
|
93.4
|
|
|
138.8
|
|
|
205.3
|
%
|
|
(25.8
|
)
|
|
(27.6
|
)%
|
Total operating revenues
|
5,314.1
|
|
|
5,160.3
|
|
|
4,734.4
|
|
|
153.8
|
|
|
3.0
|
%
|
|
425.9
|
|
|
9.0
|
%
|
Third-party distribution, service and advisory expenses
|
(1,608.2
|
)
|
|
(1,486.5
|
)
|
|
(1,407.2
|
)
|
|
(121.7
|
)
|
|
8.2
|
%
|
|
(79.3
|
)
|
|
5.6
|
%
|
Invesco Great Wall
|
83.6
|
|
|
48.7
|
|
|
43.7
|
|
|
34.9
|
|
|
71.7
|
%
|
|
5.0
|
|
|
11.4
|
%
|
CIP
|
28.6
|
|
|
32.4
|
|
|
22.3
|
|
|
(3.8
|
)
|
|
(11.7
|
)%
|
|
10.1
|
|
|
45.3
|
%
|
Net revenues*
|
3,818.1
|
|
|
3,754.9
|
|
|
3,393.2
|
|
|
63.2
|
|
|
1.7
|
%
|
|
361.7
|
|
|
10.7
|
%
|
*
|
Net revenues are operating revenues less third-party distribution, service and advisory expenses, plus net revenues from Invesco Great Wall, plus management and performance fees earned from CIP. See “Schedule of Non-GAAP Information” for additional important disclosures regarding the use of net revenues.
|
|
|
|
|
|
|
|
Variance
|
|||||||||||||
|
Years ended December 31,
|
|
2018 vs 2017
|
|
2017 vs 2016
|
|||||||||||||||
$ in millions
|
2018
|
|
2017
|
|
2016
|
|
$ Change
|
|
% Change
|
|
$ Change
|
|
% Change
|
|||||||
Third-party distribution, service and advisory
|
1,608.2
|
|
|
1,486.5
|
|
|
1,407.2
|
|
|
121.7
|
|
|
8.2
|
%
|
|
79.3
|
|
|
5.6
|
%
|
Employee compensation
|
1,494.4
|
|
|
1,499.6
|
|
|
1,369.4
|
|
|
(5.2
|
)
|
|
(0.3
|
)%
|
|
130.2
|
|
|
9.5
|
%
|
Marketing
|
134.8
|
|
|
121.8
|
|
|
114.8
|
|
|
13.0
|
|
|
10.7
|
%
|
|
7.0
|
|
|
6.1
|
%
|
Property, office and technology
|
410.5
|
|
|
364.6
|
|
|
327.2
|
|
|
45.9
|
|
|
12.6
|
%
|
|
37.4
|
|
|
11.4
|
%
|
General and administrative
|
324.4
|
|
|
306.9
|
|
|
294.4
|
|
|
17.5
|
|
|
5.7
|
%
|
|
12.5
|
|
|
4.2
|
%
|
Transaction, integration and restructuring
|
136.9
|
|
|
101.8
|
|
|
69.0
|
|
|
35.1
|
|
|
34.5
|
%
|
|
32.8
|
|
|
47.5
|
%
|
Total operating expenses
|
4,109.2
|
|
|
3,881.2
|
|
|
3,582.0
|
|
|
228.0
|
|
|
5.9
|
%
|
|
299.2
|
|
|
8.4
|
%
|
$ in millions
|
2018
|
|
% of Total Operating Expenses
|
|
% of Operating Revenues
|
|
2017
|
|
% of Total Operating Expenses
|
|
% of Operating Revenues
|
|
2016
|
|
% of Total Operating Expenses
|
|
% of Operating Revenues
|
|||||||||
Third-party distribution, service and advisory
|
1,608.2
|
|
|
39.1
|
%
|
|
30.3
|
%
|
|
1,486.5
|
|
|
38.3
|
%
|
|
28.8
|
%
|
|
1,407.2
|
|
|
39.3
|
%
|
|
29.7
|
%
|
Employee compensation
|
1,494.4
|
|
|
36.4
|
%
|
|
28.1
|
%
|
|
1,499.6
|
|
|
38.6
|
%
|
|
29.1
|
%
|
|
1,369.4
|
|
|
38.2
|
%
|
|
28.9
|
%
|
Marketing
|
134.8
|
|
|
3.3
|
%
|
|
2.5
|
%
|
|
121.8
|
|
|
3.1
|
%
|
|
2.4
|
%
|
|
114.8
|
|
|
3.2
|
%
|
|
2.4
|
%
|
Property, office and technology
|
410.5
|
|
|
10.0
|
%
|
|
7.7
|
%
|
|
364.6
|
|
|
9.4
|
%
|
|
7.1
|
%
|
|
327.2
|
|
|
9.1
|
%
|
|
6.9
|
%
|
General and administrative
|
324.4
|
|
|
7.9
|
%
|
|
6.1
|
%
|
|
306.9
|
|
|
8.0
|
%
|
|
5.9
|
%
|
|
294.4
|
|
|
8.2
|
%
|
|
6.2
|
%
|
Transaction, integration and restructuring
|
136.9
|
|
|
3.3
|
%
|
|
2.6
|
%
|
|
101.8
|
|
|
2.6
|
%
|
|
2.0
|
%
|
|
69.0
|
|
|
1.9
|
%
|
|
1.5
|
%
|
Total operating expenses
|
4,109.2
|
|
|
100.0
|
%
|
|
77.3
|
%
|
|
3,881.2
|
|
|
100.0
|
%
|
|
75.2
|
%
|
|
3,582.0
|
|
|
100.0
|
%
|
|
75.7
|
%
|
|
|
|
|
|
|
|
Variance
|
|||||||||||||
|
Years ended December 31,
|
|
2018 vs 2017
|
|
2017 vs 2016
|
|||||||||||||||
$ in millions
|
2018
|
|
2017
|
|
2016
|
|
$ Change
|
|
% Change
|
|
$ Change
|
|
% Change
|
|||||||
Equity in earnings of unconsolidated affiliates
|
33.8
|
|
|
44.7
|
|
|
9.3
|
|
|
(10.9
|
)
|
|
(24.4
|
)%
|
|
35.4
|
|
|
380.6
|
%
|
Interest and dividend income
|
21.3
|
|
|
13.4
|
|
|
12.2
|
|
|
7.9
|
|
|
59.0
|
%
|
|
1.2
|
|
|
9.8
|
%
|
Interest expense
|
(111.5
|
)
|
|
(94.8
|
)
|
|
(93.4
|
)
|
|
(16.7
|
)
|
|
17.6
|
%
|
|
(1.4
|
)
|
|
1.5
|
%
|
Other gains and losses, net
|
(40.0
|
)
|
|
49.5
|
|
|
46.9
|
|
|
(89.5
|
)
|
|
(180.8
|
)%
|
|
2.6
|
|
|
5.5
|
%
|
Other income/(expense) of CIP, net
|
29.6
|
|
|
137.3
|
|
|
79.2
|
|
|
(107.7
|
)
|
|
(78.4
|
)%
|
|
58.1
|
|
|
73.4
|
%
|
Total other income and expenses
|
(66.8
|
)
|
|
150.1
|
|
|
54.2
|
|
|
(216.9
|
)
|
|
(144.5
|
)%
|
|
95.9
|
|
|
176.9
|
%
|
$ in millions
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|||||
Operating revenues, U.S. GAAP basis
|
5,314.1
|
|
|
5,160.3
|
|
|
4,734.4
|
|
|
5,122.9
|
|
|
5,147.1
|
|
Invesco Great Wall
(1)
|
83.6
|
|
|
48.7
|
|
|
43.7
|
|
|
61.0
|
|
|
56.7
|
|
Third party distribution, service and advisory expenses
(2)
|
(1,608.2
|
)
|
|
(1,486.5
|
)
|
|
(1,407.2
|
)
|
|
(1,579.9
|
)
|
|
(1,630.7
|
)
|
CIP
(3)
|
28.6
|
|
|
32.4
|
|
|
22.3
|
|
|
39.2
|
|
|
35.2
|
|
Net revenues
|
3,818.1
|
|
|
3,754.9
|
|
|
3,393.2
|
|
|
3,643.2
|
|
|
3,608.3
|
|
$ in millions
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|||||
Operating income, U.S. GAAP basis
|
1,204.9
|
|
|
1,279.1
|
|
|
1,152.4
|
|
|
1,344.7
|
|
|
1,270.1
|
|
Invesco Great Wall
(1)
|
31.1
|
|
|
18.4
|
|
|
15.9
|
|
|
27.4
|
|
|
25.9
|
|
CIP
(3)
|
44.8
|
|
|
42.9
|
|
|
51.0
|
|
|
63.2
|
|
|
69.8
|
|
Transaction, integration, and restructuring
(4)
|
136.9
|
|
|
101.8
|
|
|
69.0
|
|
|
22.6
|
|
|
52.9
|
|
Compensation expense related to market valuation changes in deferred compensation plans
(5)
|
(3.2
|
)
|
|
20.3
|
|
|
8.1
|
|
|
4.3
|
|
|
11.5
|
|
Other reconciling items
(6)
|
(22.8
|
)
|
|
19.7
|
|
|
1.0
|
|
|
17.8
|
|
|
58.0
|
|
Adjusted operating income
|
1,391.7
|
|
|
1,482.2
|
|
|
1,297.4
|
|
|
1,480.0
|
|
|
1,488.2
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Operating margin*
|
22.7
|
%
|
|
24.8
|
%
|
|
24.3
|
%
|
|
26.2
|
%
|
|
24.7
|
%
|
Adjusted operating margin**
|
36.5
|
%
|
|
39.5
|
%
|
|
38.2
|
%
|
|
40.6
|
%
|
|
41.2
|
%
|
$ in millions, except per share data
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
||||||||||
Net income attributable to Invesco Ltd., U.S. GAAP basis
|
882.8
|
|
|
1,127.3
|
|
|
854.2
|
|
|
968.1
|
|
|
988.1
|
|
|||||
CIP
(3)
|
(8.8
|
)
|
|
(2.3
|
)
|
|
(3.0
|
)
|
|
40.4
|
|
|
(7.8
|
)
|
|||||
Transaction, integration and restructuring, net of tax
(4)
|
138.6
|
|
|
91.9
|
|
|
68.3
|
|
|
36.8
|
|
|
67.8
|
|
|||||
Deferred compensation plan market valuation changes and dividend income less compensation expense, net of tax
(5)
|
15.4
|
|
|
(4.6
|
)
|
|
(2.5
|
)
|
|
5.9
|
|
|
(0.3
|
)
|
|||||
Other reconciling items, net of tax
(6)
|
(25.3
|
)
|
|
(106.4
|
)
|
|
7.1
|
|
|
(2.5
|
)
|
|
47.0
|
|
|||||
Adjusted net income attributable to Invesco Ltd.
|
1,002.7
|
|
|
1,105.9
|
|
|
924.1
|
|
|
1,048.7
|
|
|
1,094.8
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Average shares outstanding - diluted
|
412.5
|
|
|
409.9
|
|
|
415.0
|
|
|
429.3
|
|
|
435.6
|
|
|||||
Diluted EPS
|
|
$2.14
|
|
|
|
$2.75
|
|
|
|
$2.06
|
|
|
|
$2.26
|
|
|
|
$2.27
|
|
Adjusted diluted EPS***
|
|
$2.43
|
|
|
|
$2.70
|
|
|
|
$2.23
|
|
|
|
$2.44
|
|
|
|
$2.51
|
|
*
|
Operating margin is equal to operating income divided by operating revenues.
|
**
|
Adjusted operating margin is equal to adjusted operating income divided by net revenues.
|
***
|
Adjusted diluted EPS is equal to adju
sted net income attributable to Invesco Ltd. divided by the weighted average number of common and restricted shares outstanding. There is no difference between the calculated earnings per share amounts presented above and the calculated earnings per share amounts under the two class method.
|
(1)
|
Invesco Great Wall
|
(2)
|
Third-party distribution, service and advisory expenses
|
(3)
|
CIP
|
|
Year ended December 31,
|
|||||||||||||
$ in millions, except per share data
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|||||
Management fees earned from CIP, eliminated upon consolidation
|
28.6
|
|
|
25.5
|
|
|
20.8
|
|
|
30.7
|
|
|
26.7
|
|
Performance fees earned from CIP, eliminated upon consolidation
|
—
|
|
|
6.9
|
|
|
1.5
|
|
|
8.5
|
|
|
9.1
|
|
Other revenues recorded by CIP
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.6
|
)
|
CIP related adjustments in arriving at net revenues
|
28.6
|
|
|
32.4
|
|
|
22.3
|
|
|
39.2
|
|
|
35.2
|
|
(4)
|
Transaction, integration and restructuring related adjustments
|
$ in millions
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|||||
Market movement on deferred compensation plan liabilities:
|
|
|
|
|
|
|
|
|
|
|||||
Compensation expense related to market valuation changes in deferred compensation liability
|
(3.2
|
)
|
|
20.3
|
|
|
8.1
|
|
|
4.3
|
|
|
11.5
|
|
Adjustments to operating income
|
(3.2
|
)
|
|
20.3
|
|
|
8.1
|
|
|
4.3
|
|
|
11.5
|
|
Market valuation changes and dividend income from investments and instruments held related to deferred compensation plans in other income/(expense)
|
23.1
|
|
|
(27.6
|
)
|
|
(12.1
|
)
|
|
4.8
|
|
|
(11.2
|
)
|
Taxation:
|
|
|
|
|
|
|
|
|
|
|||||
Taxation on deferred compensation plan market valuation changes and dividend income less compensation expense
|
(4.5
|
)
|
|
2.7
|
|
|
1.5
|
|
|
(3.2
|
)
|
|
(0.6
|
)
|
Adjustments to net income attributable to Invesco Ltd.
|
15.4
|
|
|
(4.6
|
)
|
|
(2.5
|
)
|
|
5.9
|
|
|
(0.3
|
)
|
$ in millions
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|||||||
Other non-GAAP adjustments:
|
|
|
|
|
|
|
|
|
|
|||||||
Regulatory charge
(a)
|
—
|
|
|
—
|
|
|
1.0
|
|
|
12.6
|
|
|
31.1
|
|
||
Legal fees for regulatory charge
(a)
|
—
|
|
|
—
|
|
|
—
|
|
|
0.5
|
|
|
0.5
|
|
||
Prior period impact of multi-year VAT tax recovery
(b)
|
(22.8
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
Senior executive retirement and related costs
(c)
|
—
|
|
|
19.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
Fund reimbursement expense
(d)
|
—
|
|
|
—
|
|
|
—
|
|
|
4.7
|
|
|
31.1
|
|
||
U.K. FSCS levy
(e)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4.7
|
)
|
||
Adjustments to operating income
|
(22.8
|
)
|
|
19.7
|
|
|
1.0
|
|
|
17.8
|
|
|
58.0
|
|
||
Foreign exchange hedge
(f)
|
(8.2
|
)
|
|
20.6
|
|
|
(14.2
|
)
|
|
1.0
|
|
|
(0.2
|
)
|
||
Employee benefit plan termination
(g)
|
—
|
|
|
—
|
|
|
(8.6
|
)
|
|
—
|
|
|
—
|
|
||
Change in contingent consideration estimates
(h)
|
(0.9
|
)
|
|
(7.6
|
)
|
|
7.4
|
|
—
|
|
(27.1
|
)
|
—
|
|
—
|
|
Foreign exchange gain related to business acquisitions
(i)
|
—
|
|
|
(12.1
|
)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
Other-than-temporary impairment
(j)
|
—
|
|
|
—
|
|
|
17.8
|
|
—
|
|
—
|
|
—
|
|
—
|
|
Taxation:
|
|
|
|
|
|
|
|
|
|
|||||||
Taxation on regulatory-related charges
(a)
|
—
|
|
|
—
|
|
|
(1.8
|
)
|
|
(2.7
|
)
|
|
(0.1
|
)
|
||
Taxation on prior period impact of multi-year VAT tax recovery
(b)
|
4.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
Taxation on senior executive retirement and related
costs
(c)
|
—
|
|
|
(5.9
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||
Taxation on fund reimbursement expense
(d)
|
—
|
|
|
—
|
|
|
—
|
|
|
(1.8
|
)
|
|
(11.7
|
)
|
||
Taxation on U.K. FSCS levy
(e)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1.0
|
|
||
Taxation on foreign exchange hedge amortization
(f)
|
2.1
|
|
|
(7.8
|
)
|
|
5.0
|
|
|
—
|
|
|
—
|
|
||
Taxation on employee benefit plan termination
(g)
|
—
|
|
|
—
|
|
|
3.3
|
|
|
—
|
|
|
—
|
|
||
Taxation on change in consideration estimates
(h)
|
0.2
|
|
|
2.9
|
|
|
(2.8
|
)
|
|
10.3
|
|
|
—
|
|
||
Taxation on foreign exchange gain related to business acquisitions
(i)
|
—
|
|
|
2.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
Retroactive state tax adjustment
(k)
|
—
|
|
|
12.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
Tax impact of regulation changes
(k)
|
—
|
|
|
(130.7
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||
Adjustments to net income attributable to Invesco Ltd.
|
(25.3
|
)
|
|
(106.4
|
)
|
|
7.1
|
|
|
(2.5
|
)
|
|
47.0
|
|
(a)
|
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
). Operating expenses for
2014
include a charge of
$31.1 million
(in respect of the penalty under a settlement of an enforcement proceeding reached with the U.K. Financial Conduct Authority (FCA) pertaining to the company's compliance with certain FCA rules and regulations for the period from May 2008 to November 2012).
|
(b)
|
As a result of an increase in our recoverable VAT from applying additional regulatory guidance, a credit was recorded in the third quarter of 2018. The portion of the cumulative adjustment representing 2014 through 2017 has been removed for non-GAAP purposes.
|
(c)
|
Operating expenses for
2017
reflect the cost of multiple senior executive retirements, including, among others, the former Senior Managing Director of EMEA and the Chairman of our Private Equity business, which resulted in expenses of
$19.7 million
related to accelerated vesting of deferred compensation and other separation costs. The number of senior executive retirements and magnitude of their retirement costs incurred in one quarter was unprecedented for Invesco. The company deemed it appropriate to adjust these costs from U.S. GAAP total
|
(d)
|
General and administrative expenses for
2014
and
2015
include charges of
$31.1 million
and
$4.7 million
, respectively, 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.
|
(e)
|
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.
|
(f)
|
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 the Euro/U.S. Dollar foreign exchange rates. The Pound Sterling contracts provide coverage through
June 29, 2019
and the Euro contracts provided coverage through December 27, 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.
|
(g)
|
Employee benefit plan termination: Operating expenses for
2016
include an incremental credit of
$8.6 million
related to an employee benefit plan termination
.
|
(h)
|
During 2015, the company acquired investment management contracts from Deutsche Bank and the purchase price was solely comprised of contingent consideration payable in future periods. Adjustment represents the change in the fair value of contingent consideration liability.
|
(i)
|
Other gains and losses for 2017 includes a realized gain of
$12.1 million
related to revaluation of Euros held in the U.K. in anticipation of payment for the European ETF business acquisition.
|
(j)
|
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.
|
(k)
|
The income tax provision for 2017 includes a retroactive state tax expense of
$12.2 million
related to 2016 and prior open tax years caused by changes in state tax regulations. 2017 also included a
$130.7 million
tax benefit as a result of the revaluation of deferred tax assets and liabilities following the 2017 Tax Act enacted in the United States.
|
|
As of December 31, 2018
|
|
As of December 31, 2017
|
||||||||||||||||||||
Balance sheet information
$ in millions |
U.S. GAAP
|
|
Impact of CIP
|
|
Impact of Policyholders
|
|
As Adjusted
|
|
U.S. GAAP
|
|
Impact of CIP
|
|
Impact of Policyholders
|
|
As Adjusted
|
||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents
|
1,147.7
|
|
|
—
|
|
|
—
|
|
|
1,147.7
|
|
|
2,006.4
|
|
|
—
|
|
|
—
|
|
|
2,006.4
|
|
Unsettled fund receivables
|
191.3
|
|
|
—
|
|
|
—
|
|
|
191.3
|
|
|
793.8
|
|
|
—
|
|
|
—
|
|
|
793.8
|
|
Investments
|
613.5
|
|
|
(610.9
|
)
|
|
—
|
|
|
1,224.4
|
|
|
674.6
|
|
|
(478.9
|
)
|
|
—
|
|
|
1,153.5
|
|
Assets of CIP:
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
—
|
|
||||||
Investments and other assets of CIP
|
6,324.3
|
|
|
6,324.3
|
|
|
—
|
|
|
—
|
|
|
5,789.5
|
|
|
5,789.5
|
|
|
—
|
|
|
—
|
|
Cash and cash equivalents of CIP
|
657.7
|
|
|
657.7
|
|
|
—
|
|
|
—
|
|
|
511.3
|
|
|
511.3
|
|
|
—
|
|
|
—
|
|
Assets held for policyholders
|
11,384.8
|
|
|
—
|
|
|
11,384.8
|
|
|
—
|
|
|
12,444.5
|
|
|
—
|
|
|
12,444.5
|
|
|
—
|
|
Goodwill and intangible assets, net
|
9,333.2
|
|
|
—
|
|
|
—
|
|
|
9,333.2
|
|
|
8,149.4
|
|
|
—
|
|
|
—
|
|
|
8,149.4
|
|
Other assets
(2)
|
1,325.9
|
|
|
(5.0
|
)
|
|
—
|
|
|
1,330.9
|
|
|
1,299.3
|
|
|
(21.6
|
)
|
|
—
|
|
|
1,320.9
|
|
Total assets
|
30,978.4
|
|
|
6,366.1
|
|
|
11,384.8
|
|
|
13,227.5
|
|
|
31,668.8
|
|
|
5,800.3
|
|
|
12,444.5
|
|
|
13,424.0
|
|
LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Liabilities of CIP:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|||||||
Debt of CIP
|
5,226.0
|
|
|
5,226.0
|
|
|
—
|
|
|
—
|
|
|
4,799.8
|
|
|
4,799.8
|
|
|
—
|
|
|
—
|
|
Other liabilities of CIP
|
387.6
|
|
|
387.6
|
|
|
—
|
|
|
—
|
|
|
498.8
|
|
|
498.8
|
|
|
—
|
|
|
—
|
|
Policyholder payables
|
11,384.8
|
|
|
—
|
|
|
11,384.8
|
|
|
—
|
|
|
12,444.5
|
|
|
—
|
|
|
12,444.5
|
|
|
—
|
|
Unsettled fund payables
|
178.7
|
|
|
—
|
|
|
—
|
|
|
178.7
|
|
|
783.8
|
|
|
—
|
|
|
—
|
|
|
783.8
|
|
Long-term debt
|
2,408.8
|
|
|
—
|
|
|
—
|
|
|
2,408.8
|
|
|
2,075.8
|
|
|
—
|
|
|
—
|
|
|
2,075.8
|
|
Other liabilities
(3)
|
2,060.1
|
|
|
—
|
|
|
—
|
|
|
2,060.1
|
|
|
1,867.3
|
|
|
—
|
|
|
—
|
|
|
1,867.3
|
|
Total liabilities
|
21,646.0
|
|
|
5,613.6
|
|
|
11,384.8
|
|
|
4,647.6
|
|
|
22,470.0
|
|
|
5,298.6
|
|
|
12,444.5
|
|
|
4,726.9
|
|
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Total equity attributable to Invesco Ltd.
|
8,578.8
|
|
|
(0.1
|
)
|
|
—
|
|
|
8,578.9
|
|
|
8,696.1
|
|
|
(0.1
|
)
|
|
—
|
|
|
8,696.2
|
|
Noncontrolling interests
(4)
|
753.6
|
|
|
752.7
|
|
|
—
|
|
|
0.9
|
|
|
502.7
|
|
|
501.8
|
|
|
—
|
|
|
0.9
|
|
Total equity
|
9,332.4
|
|
|
752.6
|
|
|
—
|
|
|
8,579.8
|
|
|
9,198.8
|
|
|
501.7
|
|
|
—
|
|
|
8,697.1
|
|
Total liabilities and equity
|
30,978.4
|
|
|
6,366.2
|
|
|
11,384.8
|
|
|
13,227.4
|
|
|
31,668.8
|
|
|
5,800.3
|
|
|
12,444.5
|
|
|
13,424.0
|
|
(2)
|
Amounts include accounts receivable, prepaid assets, property, equipment and software and other assets.
|
(3)
|
Amounts include accrued compensation and benefits, accounts payable and accrued expenses and deferred tax liabilities.
|
(4)
|
Amounts include redeemable noncontrolling interests in consolidated entities and equity attributable to nonredeemable noncontrolling interests in consolidated entities.
|
•
|
reinvestment in the business;
|
•
|
moderate annual growth of dividends (as further discussed in the "Dividends" section below);
|
•
|
share repurchase; and
|
•
|
target an approximate $1 billion cash buffer in excess of European regulatory and liquidity requirements.
|
Cash Flow Information
(1)
|
Year ended December 31, 2018
|
|
Year ended December 31, 2017
|
|
Year ended December 31, 2016
|
|||||||||||||||||||||
$ in millions
|
U.S. GAAP
|
|
Impact of CIP
|
|
Excluding CIP
|
|
U.S. GAAP
|
|
Impact of CIP
|
|
Excluding CIP
|
|
U.S. GAAP
|
|
Impact of CIP
|
|
Excluding CIP
|
|||||||||
Cash and cash equivalents, beginning of the period
|
2,517.7
|
|
|
511.3
|
|
|
2,006.4
|
|
|
2,070.2
|
|
|
742.2
|
|
|
1,328.0
|
|
|
2,214.7
|
|
|
363.3
|
|
|
1,851.4
|
|
Cash flows from operating activities
(1)
|
828.8
|
|
|
(234.2
|
)
|
|
1,063.0
|
|
|
1,157.8
|
|
|
(294.2
|
)
|
|
1,452.0
|
|
|
654.0
|
|
|
(210.2
|
)
|
|
864.2
|
|
Cash flows from investing activities
|
(2,898.7
|
)
|
|
(1,248.0
|
)
|
|
(1,650.7
|
)
|
|
(974.4
|
)
|
|
(678.3
|
)
|
|
(296.1
|
)
|
|
(1,005.9
|
)
|
|
(732.0
|
)
|
|
(273.9
|
)
|
Cash flows from financing activities
|
1,540.0
|
|
|
1,767.2
|
|
|
(227.2
|
)
|
|
169.0
|
|
|
746.3
|
|
|
(577.3
|
)
|
|
470.1
|
|
|
1,451.6
|
|
|
(981.5
|
)
|
Increase/(decrease) in cash and cash equivalents
|
(529.9
|
)
|
|
285.0
|
|
|
(814.9
|
)
|
|
352.4
|
|
|
(226.2
|
)
|
|
578.6
|
|
|
118.2
|
|
|
509.4
|
|
|
(391.2
|
)
|
Foreign exchange movement on cash and cash equivalents
|
(44.8
|
)
|
|
(1.0
|
)
|
|
(43.8
|
)
|
|
104.1
|
|
|
4.3
|
|
|
99.8
|
|
|
(132.0
|
)
|
|
0.2
|
|
|
(132.2
|
)
|
Net cash inflows (outflows) upon consolidation/deconsolidation of CIP
|
(137.6
|
)
|
|
(137.6
|
)
|
|
—
|
|
|
(9.0
|
)
|
|
(9.0
|
)
|
|
—
|
|
|
(130.7
|
)
|
|
(130.7
|
)
|
|
—
|
|
Cash and cash equivalents, end of the period
|
1,805.4
|
|
|
657.7
|
|
|
1,147.7
|
|
|
2,517.7
|
|
|
511.3
|
|
|
2,006.4
|
|
|
2,070.2
|
|
|
742.2
|
|
|
1,328.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Cash and cash equivalents
|
1,147.7
|
|
|
—
|
|
|
1,147.7
|
|
|
2,006.4
|
|
|
—
|
|
|
2,006.4
|
|
|
1,328.0
|
|
|
—
|
|
|
1,328.0
|
|
Cash and cash equivalents of CIP
|
657.7
|
|
|
657.7
|
|
|
—
|
|
|
511.3
|
|
|
511.3
|
|
|
—
|
|
|
742.2
|
|
|
742.2
|
|
|
—
|
|
Total cash and cash equivalents per consolidated statement of cash flows
|
1,805.4
|
|
|
657.7
|
|
|
1,147.7
|
|
|
2,517.7
|
|
|
511.3
|
|
|
2,006.4
|
|
|
2,070.2
|
|
|
742.2
|
|
|
1,328.0
|
|
(1)
|
These tables include non-GAAP presentations. Cash held by CIP is not available for use by Invesco. Additionally, there is no recourse to Invesco for CIP debt. The cash flows of CIP do not form part of the company’s cash flow management processes, nor do they form part of the company’s significant liquidity evaluations and decisions. Policyholder assets and liabilities are equal and offsetting and have no impact on Invesco’s shareholder’s equity. The impact of cash inflows/outflows from policyholder assets and liabilities are reflected within cash flows from operating activities as changes in receivable and/or payables, as applicable.
|
$ in millions
|
December 31, 2018
|
|
December 31, 2017
|
||
$1.5 billion floating rate credit facility expiring August 11, 2022
|
330.8
|
|
|
—
|
|
Unsecured Senior Notes:
|
|
|
|
||
$600 million 3.125% - due November 30, 2022
|
597.5
|
|
|
596.9
|
|
$600 million 4.000% - due January 30, 2024
|
594.9
|
|
|
594.0
|
|
$500 million 3.750% -- due January 15, 2026
|
495.6
|
|
|
495.1
|
|
$400 million 5.375% - due November 30, 2043
|
390.0
|
|
|
389.8
|
|
Long-term debt
|
2,408.8
|
|
|
2,075.8
|
|
|
Last four quarters ended
|
||||||
$ millions
|
December 31, 2018
|
|
December 31, 2017
|
||||
Net income attributable to Invesco Ltd.
|
882.8
|
|
|
1,127.3
|
|
||
Impact of CIP on net income attributable to Invesco Ltd.
|
(8.8
|
)
|
|
(2.3
|
)
|
||
Tax expense
|
255.0
|
|
|
268.2
|
|
||
Amortization/depreciation
|
142.1
|
|
|
116.8
|
|
||
Interest expense
|
111.5
|
|
|
94.8
|
|
||
Share-based compensation expense
|
172.4
|
|
|
175.3
|
|
||
Unrealized (gains)/losses from investments, net
(1)
|
46.7
|
|
|
(13.4
|
)
|
||
EBITDA
(2)
|
1,601.7
|
|
|
1,766.7
|
|
||
Adjusted debt
(2)
|
|
$2,418.4
|
|
|
|
$2,086.4
|
|
Leverage ratio (Debt/EBITDA - maximum 3.25:1.00)
|
1.51
|
|
|
1.18
|
|
||
Interest coverage (EBITDA/Interest Expense - minimum 4.00:1.00)
|
14.37
|
|
|
18.64
|
|
(1)
|
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.
|
(2)
|
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
$2,408.8 million
plus
$10.4 million
in letters of credit.
|
$ in millions
|
Total
(4,5,6)
|
|
Within 1 Year
|
|
1-3 Years
|
|
3-5 Years
|
|
More Than 5 Years
|
|||||
Long-term debt
(1)
|
2,408.8
|
|
|
—
|
|
|
—
|
|
|
928.3
|
|
|
1,480.5
|
|
Estimated interest payments on long-term debt
(1)
|
885.1
|
|
|
83.0
|
|
|
166.0
|
|
|
147.3
|
|
|
488.8
|
|
Operating leases
(2)
|
300.2
|
|
|
61.6
|
|
|
105.6
|
|
|
79.5
|
|
|
53.5
|
|
Purchase obligations
(3)
|
744.7
|
|
|
456.0
|
|
|
179.8
|
|
|
62.9
|
|
|
46.0
|
|
Total
|
4,338.8
|
|
|
600.6
|
|
|
451.4
|
|
|
1,218.0
|
|
|
2,068.8
|
|
(1)
|
Long-term debt includes
$2,078.0 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
19
, “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, 2018
, 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, 2018
, the company's undrawn capital and purchase commitments were
$391.6 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, 2018
, the company is unable to make reasonably reliable estimates of the period of cash settlement with the respective taxing authorities. Therefore,
$20.0 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 plans. For the years ended
December 31, 2018
and
2017
we contributed
$21.2 million
and
$11.8 million
, respectively, to these plans. In 2019, we expect to contribute
$23.5 million
to our defined benefit pension plans. See Item 8, Financial Statements and Supplementary Data - Note
12
, “Retirement Benefit Plans” for detailed benefit pension 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.
|
•
|
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, 2018
|
|||||||
$ in millions
|
Fair Value
|
|
Fair Value assuming 10% increase
|
|
Fair Value assuming 10% decrease
|
|||
Equity investments
(a)
|
283.2
|
|
|
311.5
|
|
|
254.9
|
|
Total assets measured at fair value exposed to market risk
|
283.2
|
|
|
311.5
|
|
|
254.9
|
|
|
|
|
|
|
|
|||
Direct investments in CIP
(b)
|
615.8
|
|
|
677.4
|
|
|
554.2
|
|
|
|
|
|
|
|
|||
Contingent consideration liability
(c)
|
(40.9
|
)
|
|
(45.0
|
)
|
|
(36.8
|
)
|
(a)
|
If such a 10% increase or decrease in fair values were to occur, the change attributable to
$283.2 million
of these equity investments would result in a corresponding increase or decrease in our pre-tax earnings. At
December 31, 2018
,
$78.6 million
of these equity investments are held to hedge economically certain deferred compensation plans in which the company participates. In addition to holding equity investments, in 2017, the company purchased a total return swap to economically hedge certain deferred compensation plans. The notional value of the total return swap at December 1, 2018 was
$103.9 million
. 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.
|
(b)
|
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. In addition, in the third quarter of 2018, the company entered into total return swap agreements with respect to certain ETFs. Through the total return swap agreements, the company holds an indirect interest in the ETFs. At December 31, 2018, the aggregate notional value of the total return swaps was
$171.0 million
. If a 10% increase or decrease in the fair values of Invesco’s direct investments in CIP and total return swap instruments were to occur, it would result in a corresponding increase or decrease in our net income attributable to Invesco Ltd.
|
(c)
|
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, 2018
|
|
December 31, 2017
|
||
Long-term debt
|
|
|
|
||
Fixed rate
|
2,078.0
|
|
|
2,075.8
|
|
Floating rate
|
330.8
|
|
|
—
|
|
Total
|
2,408.8
|
|
|
2,075.8
|
|
|
|
|
|
||
Weighted average interest rate percentage
|
3.8
|
%
|
|
3.9
|
%
|
Weighted average period for which rate is fixed in years
|
8.9
|
|
|
9.9
|
|
|
2018
|
|
2017
|
||||||||||||||||||||||||||||
$ in millions, except per share data
|
Q4
|
|
Q3
|
|
Q2
|
|
Q1
|
|
Q4
|
|
Q3
|
|
Q2
|
|
Q1
|
||||||||||||||||
Operating revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Investment management fees
|
949.2
|
|
|
1,038.9
|
|
|
1,050.5
|
|
|
1,043.7
|
|
|
1,098.7
|
|
|
1,062.3
|
|
|
1,010.4
|
|
|
955.2
|
|
||||||||
Service and distribution fees
|
231.5
|
|
|
248.0
|
|
|
242.9
|
|
|
246.1
|
|
|
217.5
|
|
|
217.6
|
|
|
211.3
|
|
|
206.4
|
|
||||||||
Performance fees
|
28.3
|
|
|
7.9
|
|
|
11.6
|
|
|
9.1
|
|
|
43.0
|
|
|
42.3
|
|
|
16.7
|
|
|
11.3
|
|
||||||||
Other
|
46.9
|
|
|
47.0
|
|
|
55.6
|
|
|
56.9
|
|
|
16.4
|
|
|
15.5
|
|
|
16.0
|
|
|
19.7
|
|
||||||||
Total operating revenues
|
1,255.9
|
|
|
1,341.8
|
|
|
1,360.6
|
|
|
1,355.8
|
|
|
1,375.6
|
|
|
1,337.7
|
|
|
1,254.4
|
|
|
1,192.6
|
|
||||||||
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Third-party distribution, service and advisory
|
372.2
|
|
|
408.0
|
|
|
408.9
|
|
|
419.1
|
|
|
390.9
|
|
|
380.4
|
|
|
365.9
|
|
|
349.3
|
|
||||||||
Employee compensation
|
349.3
|
|
|
380.7
|
|
|
379.2
|
|
|
385.2
|
|
|
379.4
|
|
|
378.8
|
|
|
360.7
|
|
|
380.7
|
|
||||||||
Marketing
|
41.3
|
|
|
33.4
|
|
|
32.1
|
|
|
28.0
|
|
|
38.8
|
|
|
29.5
|
|
|
29.1
|
|
|
24.4
|
|
||||||||
Property, office and technology
|
108.0
|
|
|
103.7
|
|
|
98.6
|
|
|
100.2
|
|
|
99.5
|
|
|
92.6
|
|
|
87.8
|
|
|
84.7
|
|
||||||||
General and administrative
|
92.9
|
|
|
60.8
|
|
|
87.0
|
|
|
83.7
|
|
|
93.7
|
|
|
75.2
|
|
|
72.2
|
|
|
65.8
|
|
||||||||
Transaction, integration and restructuring
(1)
|
61.8
|
|
|
33.1
|
|
|
23.5
|
|
|
18.5
|
|
|
30.7
|
|
|
20.9
|
|
|
20.4
|
|
|
29.8
|
|
||||||||
Total operating expenses
|
1,025.5
|
|
|
1,019.7
|
|
|
1,029.3
|
|
|
1,034.7
|
|
|
1,033.0
|
|
|
977.4
|
|
|
936.1
|
|
|
934.7
|
|
||||||||
Operating income
|
230.4
|
|
|
322.1
|
|
|
331.3
|
|
|
321.1
|
|
|
342.6
|
|
|
360.3
|
|
|
318.3
|
|
|
257.9
|
|
||||||||
Other income/(expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Equity in earnings of unconsolidated affiliates
|
5.0
|
|
|
11.8
|
|
|
7.3
|
|
|
9.7
|
|
|
3.6
|
|
|
12.9
|
|
|
10.5
|
|
|
17.7
|
|
||||||||
Interest and dividend income
|
10.3
|
|
|
4.0
|
|
|
2.8
|
|
|
4.2
|
|
|
6.4
|
|
|
2.5
|
|
|
1.6
|
|
|
2.9
|
|
||||||||
Interest expense
|
(29.2
|
)
|
|
(29.6
|
)
|
|
(29.5
|
)
|
|
(23.2
|
)
|
|
(23.6
|
)
|
|
(23.6
|
)
|
|
(23.6
|
)
|
|
(24.0
|
)
|
||||||||
Other gains and losses, net
|
(41.9
|
)
|
|
5.9
|
|
|
1.4
|
|
|
(5.4
|
)
|
|
25.6
|
|
|
13.9
|
|
|
3.1
|
|
|
6.9
|
|
||||||||
Other income/(expense) of CIP, net
|
(26.6
|
)
|
|
28.1
|
|
|
0.9
|
|
|
27.2
|
|
|
44.8
|
|
|
31.7
|
|
|
32.3
|
|
|
28.5
|
|
||||||||
Income before income taxes
|
148.0
|
|
|
342.3
|
|
|
314.2
|
|
|
333.6
|
|
|
399.4
|
|
|
397.7
|
|
|
342.2
|
|
|
289.9
|
|
||||||||
Income tax (provision)/benefits
|
(53.2
|
)
|
|
(61.1
|
)
|
|
(72.3
|
)
|
|
(68.4
|
)
|
|
23.2
|
|
|
(123.1
|
)
|
|
(92.6
|
)
|
|
(75.7
|
)
|
||||||||
Net income
|
94.8
|
|
|
281.2
|
|
|
241.9
|
|
|
265.2
|
|
|
422.6
|
|
|
274.6
|
|
|
249.6
|
|
|
214.2
|
|
||||||||
Net (income)/loss attributable to noncontrolling interests in consolidated entities
|
19.4
|
|
|
(11.6
|
)
|
|
3.2
|
|
|
(11.3
|
)
|
|
(14.4
|
)
|
|
(7.1
|
)
|
|
(10.0
|
)
|
|
(2.2
|
)
|
||||||||
Net income attributable to Invesco Ltd.
|
114.2
|
|
|
269.6
|
|
|
245.1
|
|
|
253.9
|
|
|
408.2
|
|
|
267.5
|
|
|
239.6
|
|
|
212.0
|
|
||||||||
Earnings per share
(2)
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Basic
|
|
$0.28
|
|
|
|
$0.65
|
|
|
|
$0.59
|
|
|
|
$0.62
|
|
|
|
$1.00
|
|
|
|
$0.65
|
|
|
|
$0.58
|
|
|
|
$0.52
|
|
Diluted
|
|
$0.28
|
|
|
|
$0.65
|
|
|
|
$0.59
|
|
|
|
$0.62
|
|
|
|
$0.99
|
|
|
|
$0.65
|
|
|
|
$0.58
|
|
|
|
$0.52
|
|
Average shares outstanding
(2)
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Basic
|
410.0
|
|
|
414.3
|
|
|
413.9
|
|
|
411.3
|
|
|
410.0
|
|
|
410.0
|
|
|
409.9
|
|
|
407.7
|
|
||||||||
Diluted
|
410.1
|
|
|
414.4
|
|
|
414.1
|
|
|
411.8
|
|
|
410.6
|
|
|
410.5
|
|
|
410.3
|
|
|
408.0
|
|
||||||||
Dividends declared per share:
|
|
$0.30
|
|
|
|
$0.30
|
|
|
|
$0.30
|
|
|
|
$0.29
|
|
|
|
$0.29
|
|
|
|
$0.29
|
|
|
|
$0.29
|
|
|
|
$0.28
|
|
(1)
|
During the fourth quarter of 2018, the company added a new U.S. GAAP income statement line item, "Transaction, integration and restructuring." This line item includes transaction-related costs for acquisitions, as well as integration and restructuring-related costs. The presentation of prior period amounts has been reclassified to be consistent with the current period presentation. Such reclassifications had no impact on total operating revenues, operating expenses, net income, total assets, total liabilities, or equity attributable to Invesco Ltd. See reconciliations on the following page.
|
(2)
|
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.
|
$ in millions
|
Q3-18
|
|
Q2-18
|
|
Q1-18
|
||||||||||||||||||||||||||||||
Operating Expenses
|
As Reported
|
|
Reclassification
|
|
As Revised
|
|
As Reported
|
|
Reclassification
|
|
As Revised
|
|
As Reported
|
|
Reclassification
|
|
As Revised
|
||||||||||||||||||
Third-party distribution, service and advisory
|
$
|
408.0
|
|
|
$
|
—
|
|
|
$
|
408.0
|
|
|
$
|
408.9
|
|
|
$
|
—
|
|
|
$
|
408.9
|
|
|
$
|
419.1
|
|
|
$
|
—
|
|
|
$
|
419.1
|
|
Employee compensation
|
385.5
|
|
|
(4.8
|
)
|
|
380.7
|
|
|
381.1
|
|
|
(1.9
|
)
|
|
379.2
|
|
|
390.4
|
|
|
(5.2
|
)
|
|
385.2
|
|
|||||||||
Marketing
|
34.0
|
|
|
(0.6
|
)
|
|
33.4
|
|
|
32.8
|
|
|
(0.7
|
)
|
|
32.1
|
|
|
28.1
|
|
|
(0.1
|
)
|
|
28.0
|
|
|||||||||
Property, office and technology
|
104.8
|
|
|
(1.1
|
)
|
|
103.7
|
|
|
101.7
|
|
|
(3.1
|
)
|
|
98.6
|
|
|
102.2
|
|
|
(2.0
|
)
|
|
100.2
|
|
|||||||||
General and administrative
|
87.4
|
|
|
(26.6
|
)
|
|
60.8
|
|
|
104.8
|
|
|
(17.8
|
)
|
|
87.0
|
|
|
94.9
|
|
|
(11.2
|
)
|
|
83.7
|
|
|||||||||
Transaction, integration and restructuring
|
—
|
|
|
33.1
|
|
|
33.1
|
|
|
—
|
|
|
23.5
|
|
|
23.5
|
|
|
—
|
|
|
18.5
|
|
|
18.5
|
|
|||||||||
Total Operating Expenses
|
$
|
1,019.7
|
|
|
$
|
—
|
|
|
$
|
1,019.7
|
|
|
$
|
1,029.3
|
|
|
$
|
—
|
|
|
$
|
1,029.3
|
|
|
$
|
1,034.7
|
|
|
$
|
—
|
|
|
$
|
1,034.7
|
|
$ in millions
|
Q4-17
|
|
Q3-17
|
|
Q2-17
|
|
Q1-17
|
||||||||||||||||||||||||||||||||||||||||
Operating Expenses
|
As Reported (a)
|
|
Reclassification
|
|
As Revised
|
|
As Reported (a)
|
|
Reclassification
|
|
As Revised
|
|
As Reported (a)
|
|
Reclassification
|
|
As Revised
|
|
As Reported (a)
|
|
Reclassification
|
|
As Revised
|
||||||||||||||||||||||||
Third-party distribution, service and advisory
|
$
|
390.9
|
|
|
$
|
—
|
|
|
$
|
390.9
|
|
|
$
|
380.4
|
|
|
$
|
—
|
|
|
$
|
380.4
|
|
|
$
|
365.9
|
|
|
$
|
—
|
|
|
$
|
365.9
|
|
|
$
|
349.3
|
|
|
$
|
—
|
|
|
$
|
349.3
|
|
Employee compensation
|
383.6
|
|
|
(4.2
|
)
|
|
379.4
|
|
|
388.1
|
|
|
(9.3
|
)
|
|
378.8
|
|
|
366.2
|
|
|
(5.5
|
)
|
|
360.7
|
|
|
397.5
|
|
|
(16.8
|
)
|
|
380.7
|
|
||||||||||||
Marketing
|
40.7
|
|
|
(1.9
|
)
|
|
38.8
|
|
|
29.5
|
|
|
—
|
|
|
29.5
|
|
|
29.1
|
|
|
—
|
|
|
29.1
|
|
|
24.4
|
|
|
—
|
|
|
24.4
|
|
||||||||||||
Property, office and technology
|
102.8
|
|
|
(3.3
|
)
|
|
99.5
|
|
|
92.8
|
|
|
(0.2
|
)
|
|
92.6
|
|
|
89.0
|
|
|
(1.2
|
)
|
|
87.8
|
|
|
85.5
|
|
|
(0.8
|
)
|
|
84.7
|
|
||||||||||||
General and administrative
|
115.0
|
|
|
(21.3
|
)
|
|
93.7
|
|
|
86.6
|
|
|
(11.4
|
)
|
|
75.2
|
|
|
85.9
|
|
|
(13.7
|
)
|
|
72.2
|
|
|
78.0
|
|
|
(12.2
|
)
|
|
65.8
|
|
||||||||||||
Transaction, integration and restructuring
|
—
|
|
|
30.7
|
|
|
30.7
|
|
|
—
|
|
|
20.9
|
|
|
20.9
|
|
|
—
|
|
|
20.4
|
|
|
20.4
|
|
|
—
|
|
|
29.8
|
|
|
29.8
|
|
||||||||||||
Total Operating Expenses
|
$
|
1,033.0
|
|
|
$
|
—
|
|
|
$
|
1,033.0
|
|
|
$
|
977.4
|
|
|
$
|
—
|
|
|
$
|
977.4
|
|
|
$
|
936.1
|
|
|
$
|
—
|
|
|
$
|
936.1
|
|
|
$
|
934.7
|
|
|
$
|
—
|
|
|
$
|
934.7
|
|
(a)
|
Reflects the adoption of pension cost guidance on January 1, 2018, which required the prior period reclassification of the non-service cost components of certain pension costs into compensation costs.
|
|
As of
|
||||
$ in millions, except per share data
|
December 31, 2018
|
|
December 31, 2017
|
||
ASSETS
|
|
|
|
||
Cash and cash equivalents
|
1,147.7
|
|
|
2,006.4
|
|
Unsettled fund receivables
|
191.3
|
|
|
793.8
|
|
Accounts receivable
|
604.0
|
|
|
622.5
|
|
Investments
|
613.5
|
|
|
674.6
|
|
Assets of consolidated investment products (CIP):
|
|
|
|
||
Cash and cash equivalents of CIP
|
657.7
|
|
|
511.3
|
|
Accounts receivable and other assets of CIP
|
110.8
|
|
|
131.5
|
|
Investments of CIP
|
6,213.5
|
|
|
5,658.0
|
|
Assets held for policyholders
|
11,384.8
|
|
|
12,444.5
|
|
Prepaid assets
|
127.1
|
|
|
124.4
|
|
Other assets
|
126.1
|
|
|
61.7
|
|
Property, equipment and software, net
|
468.7
|
|
|
490.7
|
|
Intangible assets, net
|
2,176.1
|
|
|
1,558.7
|
|
Goodwill
|
7,157.1
|
|
|
6,590.7
|
|
Total assets
|
30,978.4
|
|
|
31,668.8
|
|
LIABILITIES
|
|
|
|
||
Accrued compensation and benefits
|
646.5
|
|
|
696.1
|
|
Accounts payable and accrued expenses
|
1,087.2
|
|
|
895.7
|
|
Liabilities of CIP:
|
|
|
|
||
Debt of CIP
|
5,226.0
|
|
|
4,799.8
|
|
Other liabilities of CIP
|
387.6
|
|
|
498.8
|
|
Policyholder payables
|
11,384.8
|
|
|
12,444.5
|
|
Unsettled fund payables
|
178.7
|
|
|
783.8
|
|
Long-term debt
|
2,408.8
|
|
|
2,075.8
|
|
Deferred tax liabilities, net
|
326.4
|
|
|
275.5
|
|
Total liabilities
|
21,646.0
|
|
|
22,470.0
|
|
Commitments and contingencies (See Note 18)
|
|
|
|
|
|
TEMPORARY EQUITY
|
|
|
|
||
Redeemable noncontrolling interests in consolidated entities
|
396.2
|
|
|
243.2
|
|
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, 2018 and 2017)
|
98.1
|
|
|
98.1
|
|
Additional paid-in-capital
|
6,334.8
|
|
|
6,282.0
|
|
Treasury shares
|
(3,003.6
|
)
|
|
(2,781.9
|
)
|
Retained earnings
|
5,884.5
|
|
|
5,489.1
|
|
Accumulated other comprehensive income/(loss), net of tax
|
(735.0
|
)
|
|
(391.2
|
)
|
Total equity attributable to Invesco Ltd.
|
8,578.8
|
|
|
8,696.1
|
|
Equity attributable to nonredeemable noncontrolling interests in consolidated entities
|
357.4
|
|
|
259.5
|
|
Total permanent equity
|
8,936.2
|
|
|
8,955.6
|
|
Total liabilities, temporary and permanent equity
|
30,978.4
|
|
|
31,668.8
|
|
|
Years ended December 31,
|
||||||||||
$ in millions, except per share data
|
2018
|
|
2017
|
|
2016
|
||||||
Operating revenues:
|
|
|
|
|
|
||||||
Investment management fees
|
4,082.3
|
|
|
4,126.6
|
|
|
3,773.1
|
|
|||
Service and distribution fees
|
968.5
|
|
|
852.8
|
|
|
823.6
|
|
|||
Performance fees
|
56.9
|
|
|
113.3
|
|
|
44.3
|
|
|||
Other
|
206.4
|
|
|
67.6
|
|
|
93.4
|
|
|||
Total operating revenues
|
5,314.1
|
|
|
5,160.3
|
|
|
4,734.4
|
|
|||
Operating expenses:
|
|
|
|
|
|
||||||
Third-party distribution, service and advisory
|
1,608.2
|
|
|
1,486.5
|
|
|
1,407.2
|
|
|||
Employee compensation
|
1,494.4
|
|
|
1,499.6
|
|
|
1,369.4
|
|
|||
Marketing
|
134.8
|
|
|
121.8
|
|
|
114.8
|
|
|||
Property, office and technology
|
410.5
|
|
|
364.6
|
|
|
327.2
|
|
|||
General and administrative
|
324.4
|
|
|
306.9
|
|
|
294.4
|
|
|||
Transaction, integration and restructuring
|
136.9
|
|
|
101.8
|
|
|
69.0
|
|
|||
Total operating expenses
|
4,109.2
|
|
|
3,881.2
|
|
|
3,582.0
|
|
|||
Operating income
|
1,204.9
|
|
|
1,279.1
|
|
|
1,152.4
|
|
|||
Other income/(expense):
|
|
|
|
|
|
||||||
Equity in earnings of unconsolidated affiliates
|
33.8
|
|
|
44.7
|
|
|
9.3
|
|
|||
Interest and dividend income
|
21.3
|
|
|
13.4
|
|
|
12.2
|
|
|||
Interest expense
|
(111.5
|
)
|
|
(94.8
|
)
|
|
(93.4
|
)
|
|||
Other gains and losses, net
|
(40.0
|
)
|
|
49.5
|
|
|
46.9
|
|
|||
Other income/(expense) of CIP, net
|
29.6
|
|
|
137.3
|
|
|
79.2
|
|
|||
Income before income taxes
|
1,138.1
|
|
|
1,429.2
|
|
|
1,206.6
|
|
|||
Income tax provision
|
(255.0
|
)
|
|
(268.2
|
)
|
|
(338.3
|
)
|
|||
Net income
|
883.1
|
|
|
1,161.0
|
|
|
868.3
|
|
|||
Net (income)/loss attributable to noncontrolling interests in consolidated entities
|
(0.3
|
)
|
|
(33.7
|
)
|
|
(14.1
|
)
|
|||
Net income attributable to Invesco Ltd.
|
882.8
|
|
|
1,127.3
|
|
|
854.2
|
|
|||
|
|
|
|
|
|
||||||
Earnings per share:
|
|
|
|
|
|
||||||
-basic
|
|
$2.14
|
|
|
|
$2.75
|
|
|
|
$2.06
|
|
-diluted
|
|
$2.14
|
|
|
|
$2.75
|
|
|
|
$2.06
|
|
|
Years ended December 31,
|
|||||||
$ in millions
|
2018
|
|
2017
|
|
2016
|
|||
Net income
|
883.1
|
|
|
1,161.0
|
|
|
868.3
|
|
Other comprehensive income/(loss), net of tax:
|
|
|
|
|
|
|||
Currency translation differences on investments in foreign subsidiaries
|
(327.1
|
)
|
|
389.4
|
|
|
(314.1
|
)
|
Actuarial gain/(loss) related to employee benefit plans
|
(13.0
|
)
|
|
21.1
|
|
|
(39.5
|
)
|
Other comprehensive income/(loss), net of tax
|
(0.5
|
)
|
|
7.6
|
|
|
(9.7
|
)
|
Other comprehensive income/(loss)
|
(340.6
|
)
|
|
418.1
|
|
|
(363.3
|
)
|
Total comprehensive income/(loss)
|
542.5
|
|
|
1,579.1
|
|
|
505.0
|
|
Comprehensive (income)/loss attributable to noncontrolling interests in consolidated entities
|
(0.3
|
)
|
|
(33.7
|
)
|
|
(14.1
|
)
|
Comprehensive (loss)/income attributable to Invesco Ltd.
|
542.2
|
|
|
1,545.4
|
|
|
490.9
|
|
|
Years ended December 31,
|
|||||||
$ in millions
|
2018
|
|
2017
|
|
2016
|
|||
Operating activities:
|
|
|
|
|
|
|||
Net income
|
883.1
|
|
|
1,161.0
|
|
|
868.3
|
|
Adjustments to reconcile net income to net cash provided by/(used in) operating activities:
|
|
|
|
|
|
|||
Amortization and depreciation
|
142.1
|
|
|
116.8
|
|
|
101.2
|
|
Share-based compensation expense
|
172.4
|
|
|
175.3
|
|
|
159.7
|
|
Other gains and losses, net
|
40.0
|
|
|
(39.4
|
)
|
|
(22.9
|
)
|
Other (gains)/losses of CIP, net
|
55.1
|
|
|
(81.0
|
)
|
|
(7.4
|
)
|
Equity in earnings of unconsolidated affiliates
|
(33.8
|
)
|
|
(44.7
|
)
|
|
(9.3
|
)
|
Distributions from equity method investees
|
9.2
|
|
|
16.1
|
|
|
32.9
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|||
(Purchase)/sale of investments by CIP, net
|
(340.7
|
)
|
|
(342.5
|
)
|
|
(487.2
|
)
|
(Purchase)/sale of investments, net
|
(45.5
|
)
|
|
174.9
|
|
|
7.0
|
|
(Increase)/decrease in receivables
|
944.4
|
|
|
(3,419.4
|
)
|
|
(3,392.2
|
)
|
Increase/(decrease) in payables
|
(997.5
|
)
|
|
3,440.7
|
|
|
3,403.9
|
|
Net cash provided by/(used in) operating activities
|
828.8
|
|
|
1,157.8
|
|
|
654.0
|
|
Investing activities:
|
|
|
|
|
|
|||
Purchase of property, equipment and software
|
(102.5
|
)
|
|
(111.7
|
)
|
|
(147.7
|
)
|
Purchase of investments by CIP
|
(4,488.3
|
)
|
|
(5,709.1
|
)
|
|
(3,713.6
|
)
|
Sale of investments by CIP
|
3,210.1
|
|
|
5,026.5
|
|
|
2,958.1
|
|
Purchase of investments
|
(153.5
|
)
|
|
(177.7
|
)
|
|
(151.3
|
)
|
Sale of investments
|
123.1
|
|
|
177.3
|
|
|
147.2
|
|
Capital distribution from equity method investees
|
45.5
|
|
|
119.5
|
|
|
23.3
|
|
Collateral posted, net
|
(63.8
|
)
|
|
—
|
|
|
—
|
|
Purchase of business
|
(1,469.3
|
)
|
|
(299.2
|
)
|
|
(121.9
|
)
|
Net cash provided by/(used in) investing activities
|
(2,898.7
|
)
|
|
(974.4
|
)
|
|
(1,005.9
|
)
|
Financing activities:
|
|
|
|
|
|
|||
Purchases of treasury shares
|
(51.8
|
)
|
|
(63.8
|
)
|
|
(535.0
|
)
|
Dividends paid
|
(490.6
|
)
|
|
(471.6
|
)
|
|
(460.4
|
)
|
Excess tax benefits from share-based compensation
|
—
|
|
|
—
|
|
|
(1.7
|
)
|
Third-party capital invested into CIP
|
465.8
|
|
|
449.4
|
|
|
386.7
|
|
Third-party capital distributed by CIP
|
(117.0
|
)
|
|
(105.4
|
)
|
|
(91.5
|
)
|
Borrowings of debt of CIP
|
2,463.8
|
|
|
2,812.4
|
|
|
1,327.9
|
|
Repayments of debt of CIP
|
(1,045.4
|
)
|
|
(2,410.1
|
)
|
|
(171.5
|
)
|
Net borrowings/(repayments) under credit facility
|
330.8
|
|
|
(28.7
|
)
|
|
28.7
|
|
Payment of contingent consideration
|
(15.6
|
)
|
|
(13.2
|
)
|
|
(13.1
|
)
|
Net cash provided by/(used in) financing activities
|
1,540.0
|
|
|
169.0
|
|
|
470.1
|
|
Increase/(decrease) in cash and cash equivalents
|
(529.9
|
)
|
|
352.4
|
|
|
118.2
|
|
Foreign exchange movement on cash and cash equivalents
|
(43.8
|
)
|
|
99.8
|
|
|
(132.2
|
)
|
Foreign exchange movement on cash and cash equivalents of CIP
|
(1.0
|
)
|
|
4.3
|
|
|
0.2
|
|
Net cash inflows (outflows) upon consolidation/deconsolidation of CIP
|
(137.6
|
)
|
|
(9.0
|
)
|
|
(130.7
|
)
|
Cash and cash equivalents, beginning of period
|
2,517.7
|
|
|
2,070.2
|
|
|
2,214.7
|
|
Cash and cash equivalents, end of period
|
1,805.4
|
|
|
2,517.7
|
|
|
2,070.2
|
|
|
|
|
|
|
|
|||
Cash and cash equivalents
|
1,147.7
|
|
|
2,006.4
|
|
|
1,328.0
|
|
Cash and cash equivalents of CIP
|
657.7
|
|
|
511.3
|
|
|
742.2
|
|
Total cash and cash equivalents per consolidated statement of cash flows
|
1,805.4
|
|
|
2,517.7
|
|
|
2,070.2
|
|
|
|
|
|
|
|
|||
Supplemental Cash Flow Information:
|
|
|
|
|
|
|||
Interest paid
|
(100.8
|
)
|
|
(85.4
|
)
|
|
(81.2
|
)
|
Interest received
|
8.9
|
|
|
3.1
|
|
|
5.8
|
|
Taxes paid
|
(322.0
|
)
|
|
(256.5
|
)
|
|
(299.1
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
$ 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, 2018
|
98.1
|
|
|
6,282.0
|
|
|
(2,781.9
|
)
|
|
5,489.1
|
|
|
(391.2
|
)
|
|
8,696.1
|
|
|
259.5
|
|
|
8,955.6
|
|
|
243.2
|
|
Adjustment for adoption of ASU 2016-02
|
—
|
|
|
—
|
|
|
—
|
|
|
3.2
|
|
|
(3.2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
January 1, 2018, as adjusted
|
98.1
|
|
|
6,282.0
|
|
|
(2,781.9
|
)
|
|
5,492.3
|
|
|
(394.4
|
)
|
|
8,696.1
|
|
|
259.5
|
|
|
8,955.6
|
|
|
243.2
|
|
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
882.8
|
|
|
—
|
|
|
882.8
|
|
|
28.3
|
|
|
911.1
|
|
|
(28.0
|
)
|
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(340.6
|
)
|
|
(340.6
|
)
|
|
—
|
|
|
(340.6
|
)
|
|
—
|
|
Change in noncontrolling interests in consolidated entities, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
69.6
|
|
|
69.6
|
|
|
181.0
|
|
Dividends
|
—
|
|
|
—
|
|
|
—
|
|
|
(490.6
|
)
|
|
—
|
|
|
(490.6
|
)
|
|
—
|
|
|
(490.6
|
)
|
|
—
|
|
Employee share plans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Share-based compensation
|
—
|
|
|
172.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
172.4
|
|
|
—
|
|
|
172.4
|
|
|
—
|
|
Vested shares
|
—
|
|
|
(120.6
|
)
|
|
120.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Other share awards
|
—
|
|
|
1.0
|
|
|
6.6
|
|
|
—
|
|
|
—
|
|
|
7.6
|
|
|
—
|
|
|
7.6
|
|
|
—
|
|
Purchase of shares
|
—
|
|
|
—
|
|
|
(348.9
|
)
|
|
—
|
|
|
—
|
|
|
(348.9
|
)
|
|
—
|
|
|
(348.9
|
)
|
|
—
|
|
December 31, 2018
|
98.1
|
|
|
6,334.8
|
|
|
(3,003.6
|
)
|
|
5,884.5
|
|
|
(735.0
|
)
|
|
8,578.8
|
|
|
357.4
|
|
|
8,936.2
|
|
|
396.2
|
|
|
Equity Attributable to Invesco Ltd.
|
|
|
|
|
|
|
|
|
|||||||||||||||||
$ in millions
|
Co
mmon
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, 2017
|
98.1
|
|
|
6,227.4
|
|
|
(2,845.8
|
)
|
|
4,833.4
|
|
|
(809.3
|
)
|
|
7,503.8
|
|
|
108.0
|
|
|
7,611.8
|
|
|
283.7
|
|
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
1,127.3
|
|
|
—
|
|
|
1,127.3
|
|
|
4.5
|
|
|
1,131.8
|
|
|
29.2
|
|
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
418.1
|
|
|
418.1
|
|
|
—
|
|
|
418.1
|
|
|
—
|
|
Change in noncontrolling interests in consolidated entities, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
147.0
|
|
|
147.0
|
|
|
(69.7
|
)
|
Dividends
|
—
|
|
|
—
|
|
|
—
|
|
|
(471.6
|
)
|
|
—
|
|
|
(471.6
|
)
|
|
—
|
|
|
(471.6
|
)
|
|
—
|
|
Employee share plans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Share-based compensation
|
—
|
|
|
175.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
175.3
|
|
|
—
|
|
|
175.3
|
|
|
—
|
|
Vested shares
|
—
|
|
|
(123.0
|
)
|
|
123.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Other share awards
|
—
|
|
|
2.3
|
|
|
4.7
|
|
|
—
|
|
|
—
|
|
|
7.0
|
|
|
—
|
|
|
7.0
|
|
|
—
|
|
Purchase of shares
|
—
|
|
|
—
|
|
|
(63.8
|
)
|
|
—
|
|
|
—
|
|
|
(63.8
|
)
|
|
—
|
|
|
(63.8
|
)
|
|
—
|
|
December 31, 2017
|
98.1
|
|
|
6,282.0
|
|
|
(2,781.9
|
)
|
|
5,489.1
|
|
|
(391.2
|
)
|
|
8,696.1
|
|
|
259.5
|
|
|
8,955.6
|
|
|
243.2
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
$ in millions
|
Co
mmon
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 (loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(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
|
|
$ in millions
|
Year ended December 31, 2018
|
|||||||
Condensed Consolidated Statements of Income
|
As Reported
|
|
Adjustments Related to Adoption of
ASC 606 |
|
Balances Without Adoption of
ASC 606 |
|||
Operating revenues:
|
|
|
|
|
|
|||
Investment management fees
|
4,082.3
|
|
|
205.9
|
|
|
4,288.2
|
|
Service and distribution fees
|
968.5
|
|
|
(127.2
|
)
|
|
841.3
|
|
Performance fees
|
56.9
|
|
|
—
|
|
|
56.9
|
|
Other
|
206.4
|
|
|
(142.1
|
)
|
|
64.3
|
|
Total operating revenues
|
5,314.1
|
|
|
(63.4
|
)
|
|
5,250.7
|
|
|
|
|
|
|
|
|||
Operating expenses:
|
|
|
|
|
|
|||
Third-party distribution, service and advisory
|
1,608.2
|
|
|
(82.0
|
)
|
|
1,526.2
|
|
Employee compensation
|
1,494.4
|
|
|
—
|
|
|
1,494.4
|
|
Marketing
|
134.8
|
|
|
—
|
|
|
134.8
|
|
Property, office and technology
|
410.5
|
|
|
—
|
|
|
410.5
|
|
General and administrative
|
324.4
|
|
|
18.6
|
|
|
343.0
|
|
Transaction, integration, and restructuring
|
136.9
|
|
|
—
|
|
|
136.9
|
|
Total operating expenses
|
4,109.2
|
|
|
(63.4
|
)
|
|
4,045.8
|
|
Operating income
|
1,204.9
|
|
|
—
|
|
|
1,204.9
|
|
$ in millions
|
Year ended December 31, 2017
|
|
Year ended December 31, 2016
|
||||||||||||||
Operating Expenses
|
As Reported
(a)
|
|
Reclassification
|
|
As Revised
|
|
As Reported
(a)
|
|
Reclassification
|
|
As Revised
|
||||||
Third-party distribution, service and advisory
|
1,486.5
|
|
|
—
|
|
|
1,486.5
|
|
|
1,407.2
|
|
|
—
|
|
|
1,407.2
|
|
Employee compensation
|
1,535.4
|
|
|
(35.8
|
)
|
|
1,499.6
|
|
|
1,402.8
|
|
|
(33.4
|
)
|
|
1,369.4
|
|
Marketing
|
123.7
|
|
|
(1.9
|
)
|
|
121.8
|
|
|
114.8
|
|
|
—
|
|
|
114.8
|
|
Property, office and technology
|
370.1
|
|
|
(5.5
|
)
|
|
364.6
|
|
|
325.7
|
|
|
1.5
|
|
|
327.2
|
|
General and administrative
|
365.5
|
|
|
(58.6
|
)
|
|
306.9
|
|
|
331.5
|
|
|
(37.1
|
)
|
|
294.4
|
|
Transaction, integration and restructuring
|
—
|
|
|
101.8
|
|
|
101.8
|
|
|
—
|
|
|
69.0
|
|
|
69.0
|
|
Total Operating Expenses
|
3,881.2
|
|
|
—
|
|
|
3,881.2
|
|
|
3,582.0
|
|
|
—
|
|
|
3,582.0
|
|
|
December 31, 2018
|
|
December 31, 2017
|
||||||||
$ in millions
|
Carrying Value
|
|
Fair Value
|
|
Carrying Value
|
|
Fair Value
|
||||
Cash and cash equivalents
|
1,147.7
|
|
|
1,147.7
|
|
|
2,006.4
|
|
|
2,006.4
|
|
Equity investments
|
283.2
|
|
|
283.2
|
|
|
346.6
|
|
|
346.6
|
|
Available-for-sale investments
|
—
|
|
|
—
|
|
|
15.9
|
|
|
15.9
|
|
Foreign time deposits
(1)
|
28.1
|
|
|
28.1
|
|
|
28.6
|
|
|
28.6
|
|
Assets held for policyholders
|
11,384.8
|
|
|
11,384.8
|
|
|
12,444.5
|
|
|
12,444.5
|
|
Policyholder payables
(1)
|
(11,384.8
|
)
|
|
(11,384.8
|
)
|
|
(12,444.5
|
)
|
|
(12,444.5
|
)
|
Contingent consideration liability
|
(40.9
|
)
|
|
(40.9
|
)
|
|
(57.4
|
)
|
|
(57.4
|
)
|
Long-term debt
(1)
|
(2,408.8
|
)
|
|
(2,418.2
|
)
|
|
(2,075.8
|
)
|
|
(2,258.1
|
)
|
(1)
|
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. Policyholder payables are indexed to the value of the assets held for policyholders.
|
•
|
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, 2018
|
||||||||||
$ 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
|
367.6
|
|
|
367.6
|
|
|
—
|
|
|
—
|
|
Investments:
(1)
|
|
|
|
|
|
|
|
||||
Equity investments:
|
|
|
|
|
|
|
|
||||
Seed money
|
202.8
|
|
|
202.8
|
|
|
—
|
|
|
—
|
|
Investments related to deferred compensation plans
|
78.6
|
|
|
78.6
|
|
|
—
|
|
|
—
|
|
Other equity securities
|
1.8
|
|
|
1.8
|
|
|
—
|
|
|
—
|
|
Assets held for policyholders
|
11,384.8
|
|
|
11,384.8
|
|
|
—
|
|
|
—
|
|
Total
|
12,035.6
|
|
|
12,035.6
|
|
|
—
|
|
|
—
|
|
Liabilities:
|
|
|
|
|
|
|
|
||||
Contingent consideration liability
|
(40.9
|
)
|
|
—
|
|
|
—
|
|
|
(40.9
|
)
|
Total
|
(40.9
|
)
|
|
—
|
|
|
—
|
|
|
(40.9
|
)
|
|
As of December 31, 2017
|
||||||||||
$ 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
|
875.5
|
|
|
875.5
|
|
|
—
|
|
|
—
|
|
Investments:
(1)
|
|
|
|
|
|
|
|
||||
Equity investments:
|
|
|
|
|
|
|
|
||||
Seed money
|
243.0
|
|
|
243.0
|
|
|
—
|
|
|
—
|
|
Investments related to deferred compensation plans
|
92.3
|
|
|
92.3
|
|
|
—
|
|
|
—
|
|
Other equity securities
|
11.3
|
|
|
11.3
|
|
|
—
|
|
|
—
|
|
Available-for-sale:
|
|
|
|
|
|
|
|
||||
CLOs
|
6.0
|
|
|
—
|
|
|
6.0
|
|
|
—
|
|
Other debt securities
|
9.9
|
|
|
—
|
|
|
—
|
|
|
9.9
|
|
Assets held for policyholders
|
12,444.5
|
|
|
12,444.5
|
|
|
—
|
|
|
—
|
|
Total
|
13,682.5
|
|
|
13,666.6
|
|
|
6.0
|
|
|
9.9
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
Contingent consideration liability
|
(57.4
|
)
|
|
—
|
|
|
—
|
|
|
(57.4
|
)
|
Total
|
(57.4
|
)
|
|
—
|
|
|
—
|
|
|
(57.4
|
)
|
(1)
|
Foreign time deposits of
$28.1 million
(
December 31, 2017
:
$28.6 million
) are excluded from this table. Equity method and other investments of
$296.3 million
and
$5.9 million
, respectively, (
December 31, 2017
:
$277.3 million
and
$6.2 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, 2018
|
|
For the year ended December 31, 2017
|
|||||||||||
$ in millions
|
Contingent Consideration Liability
|
|
Other Debt Securities
|
|
Contingent Consideration Liability
|
|
CLOs
|
|
Other Debt Securities
|
|||||
Beginning balance
|
(57.4
|
)
|
|
9.9
|
|
|
(78.2
|
)
|
|
12.9
|
|
|
13.2
|
|
Purchases/acquisitions
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7.4
|
|
Net unrealized gains and losses included in other gains and losses*
|
0.9
|
|
|
—
|
|
|
7.6
|
|
|
—
|
|
|
(3.2
|
)
|
Disposition/settlements
|
15.6
|
|
|
(9.9
|
)
|
|
13.2
|
|
|
—
|
|
|
(7.5
|
)
|
Transfer from level 3 to level 2
|
—
|
|
|
—
|
|
|
—
|
|
|
(12.9
|
)
|
|
—
|
|
Ending balance
|
(40.9
|
)
|
|
—
|
|
|
(57.4
|
)
|
|
—
|
|
|
9.9
|
|
*
|
These unrealized gains and losses are attributable to balances still held at the respective year ends.
|
$ in millions
|
December 31, 2018
|
|
December 31, 2017
|
||
Equity investments:
|
|
|
|
||
Seed money
|
202.8
|
|
|
243.0
|
|
Investments related to deferred compensation plans
|
78.6
|
|
|
92.3
|
|
Other equity securities
|
1.8
|
|
|
11.3
|
|
Available-for-sale investments:
|
|
|
|
||
CLOs
|
—
|
|
|
6.0
|
|
Other debt securities
|
—
|
|
|
9.9
|
|
Equity method investments
|
296.3
|
|
|
277.3
|
|
Foreign time deposits
|
28.1
|
|
|
28.6
|
|
Other
|
5.9
|
|
|
6.2
|
|
Total investments
|
613.5
|
|
|
674.6
|
|
|
2018
|
|
2017
|
|
2016
|
|||||||||||||||||||||
$ 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
|
—
|
|
|
—
|
|
|
—
|
|
|
62.5
|
|
|
4.3
|
|
|
(1.5
|
)
|
|
42.7
|
|
|
1.5
|
|
|
(1.6
|
)
|
CLOs
|
16.5
|
|
|
2.1
|
|
|
—
|
|
|
7.1
|
|
|
1.9
|
|
|
—
|
|
|
3.0
|
|
|
—
|
|
|
—
|
|
Other debt securities
|
6.3
|
|
|
—
|
|
|
(3.6
|
)
|
|
9.9
|
|
|
2.5
|
|
|
—
|
|
|
13.6
|
|
|
—
|
|
|
(0.5
|
)
|
|
22.8
|
|
|
2.1
|
|
|
(3.6
|
)
|
|
79.5
|
|
|
8.7
|
|
|
(1.5
|
)
|
|
59.3
|
|
|
1.5
|
|
|
(2.1
|
)
|
|
December 31, 2017
|
||||||||||
$ in millions
|
Cost
|
|
Gross Unrealized Holding Gains
|
|
Gross Unrealized Holding Losses
|
|
Fair Value
|
||||
Seed money
|
65.1
|
|
|
5.5
|
|
|
(1.3
|
)
|
|
69.3
|
|
CLOs
|
4.9
|
|
|
1.1
|
|
|
—
|
|
|
6.0
|
|
Other debt securities
|
9.9
|
|
|
—
|
|
|
—
|
|
|
9.9
|
|
|
79.9
|
|
|
6.6
|
|
|
(1.3
|
)
|
|
85.2
|
|
|
December 31, 2017
|
||||
$ in millions
|
Fair Value
|
|
Gross Unrealized Losses
|
||
Less than 12 months
|
9.4
|
|
|
(0.8
|
)
|
12 months or greater
|
15.0
|
|
|
(0.5
|
)
|
Total
|
24.4
|
|
|
(1.3
|
)
|
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, 2018
|
|
December 31, 2017
|
||
Technology and Other Equipment
|
264.4
|
|
|
261.0
|
|
Software
|
669.5
|
|
|
621.9
|
|
Land and Buildings
|
83.6
|
|
|
87.5
|
|
Leasehold Improvements
|
212.5
|
|
|
204.4
|
|
Work in Process
|
43.5
|
|
|
44.8
|
|
Property, Equipment and Software, Gross
|
1,273.5
|
|
|
1,219.6
|
|
Less: Accumulated Depreciation
|
(804.8
|
)
|
|
(728.9
|
)
|
Property, Equipment and Software, Net
|
468.7
|
|
|
490.7
|
|
$ in millions
|
Gross Book Value
|
|
Accumulated Amortization
|
|
Net Book Value
|
|||
December 31, 2018
|
|
|
|
|
|
|||
Management contracts - indefinite-lived
|
2,065.0
|
|
|
N/A
|
|
|
2,065.0
|
|
Management contracts - finite-lived
|
64.3
|
|
|
(64.3
|
)
|
|
—
|
|
Developed technology
|
72.3
|
|
|
(17.6
|
)
|
|
54.7
|
|
Other
|
66.3
|
|
|
(9.9
|
)
|
|
56.4
|
|
Total
|
2,267.9
|
|
|
(91.8
|
)
|
|
2,176.1
|
|
December 31, 2017
|
|
|
|
|
|
|||
Management contracts - indefinite-lived
|
1,523.3
|
|
|
N/A
|
|
|
1,523.3
|
|
Management contracts - finite-lived
|
68.8
|
|
|
(66.3
|
)
|
|
2.5
|
|
Other
|
67.6
|
|
|
(34.7
|
)
|
|
32.9
|
|
Total
|
1,659.7
|
|
|
(101.0
|
)
|
|
1,558.7
|
|
$ in millions
Years Ended December 31,
|
Estimated Amortization Expense
|
|
2019
|
22.0
|
|
2020
|
18.4
|
|
2021
|
17.7
|
|
2022
|
15.5
|
|
2023
|
7.2
|
|
$ in millions
|
Net Book Value
|
|
January 1, 2018
|
6,590.7
|
|
Business combinations
|
819.2
|
|
Foreign exchange
|
(252.8
|
)
|
December 31, 2018
|
7,157.1
|
|
|
|
|
January 1, 2017
|
6,129.2
|
|
Business combinations
|
193.3
|
|
Foreign exchange
|
268.2
|
|
December 31, 2017
|
6,590.7
|
|
|
As of
|
||||
$ in millions
|
December 31, 2018
|
|
December 31, 2017
|
||
Compensation and benefits
|
103.7
|
|
|
101.2
|
|
Accrued bonus and deferred compensation
|
542.8
|
|
|
594.9
|
|
Accrued compensation and benefits
|
646.5
|
|
|
696.1
|
|
|
|
|
|
||
Accruals and other liabilities
|
360.4
|
|
|
302.3
|
|
Forward contract payable (See Note 9)
|
297.1
|
|
|
—
|
|
Deferred carried interest
|
61.3
|
|
|
60.4
|
|
Contingent consideration liability
|
40.9
|
|
|
57.4
|
|
Accounts payable
|
284.3
|
|
|
320.1
|
|
Income taxes payable
|
43.2
|
|
|
155.5
|
|
Accounts payable and accrued expenses
|
1,087.2
|
|
|
895.7
|
|
|
December 31, 2018
|
|
December 31, 2017
|
||||||||
$ in millions
|
Carrying Value
(2)
|
|
Fair Value
|
|
Carrying Value
(2)
|
|
Fair Value
|
||||
$1.5 billion floating rate credit facility expiring August 11, 2022
|
330.8
|
|
|
330.8
|
|
|
—
|
|
|
—
|
|
Unsecured Senior Notes:
(1)
|
|
|
|
|
|
|
|
||||
$600 million 3.125% - due November 30, 2022
|
597.5
|
|
|
585.2
|
|
|
596.9
|
|
|
608.8
|
|
$600 million 4.000% - due January 30, 2024
|
594.9
|
|
|
594.5
|
|
|
594.0
|
|
|
634.7
|
|
$500 million 3.750% - due January 15, 2026
|
495.6
|
|
|
487.6
|
|
|
495.1
|
|
|
515.0
|
|
$400 million 5.375% - due November 30, 2043
|
390.0
|
|
|
420.1
|
|
|
389.8
|
|
|
499.6
|
|
Long-term debt
|
2,408.8
|
|
|
2,418.2
|
|
|
2,075.8
|
|
|
2,258.1
|
|
(1)
|
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.
|
(2)
|
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, 2018
|
|
2022
|
928.3
|
|
2024
|
594.9
|
|
2026
|
495.6
|
|
2043
|
390.0
|
|
Long-term debt
|
2,408.8
|
|
In millions
|
December 31, 2018
|
|
December 31, 2017
|
|
December 31, 2016
|
|||
Common shares issued
|
490.4
|
|
|
490.4
|
|
|
490.4
|
|
Less: Treasury shares for which dividend and voting rights do not apply
|
(93.3
|
)
|
|
(83.3
|
)
|
|
(86.6
|
)
|
Common shares outstanding
|
397.1
|
|
|
407.1
|
|
|
403.8
|
|
|
Year ended
|
|||||||
In millions
|
December 31, 2018
|
|
December 31, 2017
|
|
December 31, 2016
|
|||
Beginning balance
|
92.4
|
|
|
95.9
|
|
|
81.3
|
|
Acquisition of common shares
|
16.0
|
|
|
1.9
|
|
|
19.6
|
|
Distribution of common shares
|
(5.2
|
)
|
|
(5.2
|
)
|
|
(4.7
|
)
|
Common shares distributed to meet ESPP obligation
|
(0.2
|
)
|
|
(0.2
|
)
|
|
(0.3
|
)
|
Ending balance
|
103.0
|
|
|
92.4
|
|
|
95.9
|
|
|
2018
|
|||||||||||||
$ 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
|
(327.1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(327.1
|
)
|
Actuarial gain/(loss) related to employee benefit plans
|
—
|
|
|
(13.0
|
)
|
|
—
|
|
|
—
|
|
|
(13.0
|
)
|
Other comprehensive income/(loss), net
|
—
|
|
|
5.0
|
|
|
(4.3
|
)
|
|
(1.2
|
)
|
|
(0.5
|
)
|
Other comprehensive income/(loss), net of tax
|
(327.1
|
)
|
|
(8.0
|
)
|
|
(4.3
|
)
|
|
(1.2
|
)
|
|
(340.6
|
)
|
|
|
|
|
|
|
|
|
|
|
|||||
Beginning balance
|
(290.5
|
)
|
|
(109.7
|
)
|
|
4.3
|
|
|
4.7
|
|
|
(391.2
|
)
|
Adjustment for adoption of ASU 2016-01
|
—
|
|
|
—
|
|
|
—
|
|
|
(3.2
|
)
|
|
(3.2
|
)
|
January 1, 2018, as adjusted
|
(290.5
|
)
|
|
(109.7
|
)
|
|
4.3
|
|
|
1.5
|
|
|
(394.4
|
)
|
Other comprehensive income/(loss), net of tax
|
(327.1
|
)
|
|
(8.0
|
)
|
|
(4.3
|
)
|
|
(1.2
|
)
|
|
(340.6
|
)
|
Ending balance
|
(617.6
|
)
|
|
(117.7
|
)
|
|
—
|
|
|
0.3
|
|
|
(735.0
|
)
|
|
2017
|
|||||||||||||
$ 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
|
389.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
389.4
|
|
Actuarial gain/(loss) related to employee benefit plans
|
—
|
|
|
21.1
|
|
|
—
|
|
|
—
|
|
|
21.1
|
|
Other comprehensive income/(loss), net
|
—
|
|
|
8.4
|
|
|
(0.5
|
)
|
|
(0.3
|
)
|
|
7.6
|
|
Other comprehensive income/(loss), net of tax
|
389.4
|
|
|
29.5
|
|
|
(0.5
|
)
|
|
(0.3
|
)
|
|
418.1
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Beginning balance
|
(679.9
|
)
|
|
(139.2
|
)
|
|
4.8
|
|
|
5.0
|
|
|
(809.3
|
)
|
Other comprehensive income/(loss)
|
389.4
|
|
|
29.5
|
|
|
(0.5
|
)
|
|
(0.3
|
)
|
|
418.1
|
|
Ending balance
|
(290.5
|
)
|
|
(109.7
|
)
|
|
4.3
|
|
|
4.7
|
|
|
(391.2
|
)
|
|
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
|
)
|
Other comprehensive income/(loss), net
|
—
|
|
|
(14.1
|
)
|
|
(1.1
|
)
|
|
5.5
|
|
|
(9.7
|
)
|
Other comprehensive income/(loss), net of tax
|
(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
|
)
|
Ending balance
|
(679.9
|
)
|
|
(139.2
|
)
|
|
4.8
|
|
|
5.0
|
|
|
(809.3
|
)
|
|
2018
|
|
2017
|
|
2016
|
|||||||||||||||
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
|
12.0
|
|
|
0.9
|
|
|
31.52
|
|
|
12.1
|
|
|
0.8
|
|
|
10.4
|
|
|
0.6
|
|
Granted during the year
|
5.7
|
|
|
0.4
|
|
|
31.78
|
|
|
5.3
|
|
|
0.3
|
|
|
6.5
|
|
|
0.4
|
|
Forfeited during the year
|
(0.3
|
)
|
|
—
|
|
|
31.84
|
|
|
(0.4
|
)
|
|
—
|
|
|
(0.3
|
)
|
|
—
|
|
Vested and distributed during the year
|
(4.9
|
)
|
|
(0.4
|
)
|
|
31.99
|
|
|
(5.0
|
)
|
|
(0.2
|
)
|
|
(4.5
|
)
|
|
(0.2
|
)
|
Unvested at the end of the year
|
12.5
|
|
|
0.9
|
|
|
31.46
|
|
|
12.0
|
|
|
0.9
|
|
|
12.1
|
|
|
0.8
|
|
|
Retirement Plans
|
||||
$ in millions
|
2018
|
|
2017
|
||
Benefit obligation
|
(475.6
|
)
|
|
(548.6
|
)
|
Fair value of plan assets
|
430.2
|
|
|
486.9
|
|
Funded status
|
(45.4
|
)
|
|
(61.7
|
)
|
Amounts recognized in the Consolidated Balance Sheets:
|
|
|
|
||
Other assets
|
3.3
|
|
|
3.6
|
|
Accrued compensation and benefits
|
(48.7
|
)
|
|
(65.3
|
)
|
Funded status
|
(45.4
|
)
|
|
(61.7
|
)
|
|
Retirement Plans
|
||||
$ in millions
|
2018
|
|
2017
|
||
January 1
|
548.6
|
|
|
521.2
|
|
Service cost
|
3.8
|
|
|
2.3
|
|
Interest cost
|
12.6
|
|
|
14.1
|
|
Contributions from plan participants
|
—
|
|
|
—
|
|
Actuarial (gains)/losses
|
(34.1
|
)
|
|
3.3
|
|
Exchange difference
|
(32.0
|
)
|
|
51.7
|
|
Benefits paid
|
(8.5
|
)
|
|
(9.0
|
)
|
Settlement
|
(14.8
|
)
|
|
(35.0
|
)
|
December 31
|
475.6
|
|
|
548.6
|
|
|
Retirement Plans
|
||||
|
2018
|
|
2017
|
||
Discount rate
|
2.82
|
%
|
|
2.47
|
%
|
Expected rate of salary increases
|
3.24
|
%
|
|
3.26
|
%
|
Future pension trend rate increases
|
3.04
|
%
|
|
2.97
|
%
|
|
Retirement Plans
|
||||
$ in millions
|
2018
|
|
2017
|
||
January 1
|
486.9
|
|
|
424.1
|
|
Actual return on plan assets
|
(26.3
|
)
|
|
52.3
|
|
Exchange difference
|
(28.2
|
)
|
|
41.9
|
|
Contributions from the company
|
21.2
|
|
|
11.8
|
|
Benefits paid
|
(8.5
|
)
|
|
(9.0
|
)
|
Settlement and other
|
(14.9
|
)
|
|
(34.2
|
)
|
December 31
|
430.2
|
|
|
486.9
|
|
|
Retirement Plans
|
||||
$ in millions
|
2018
|
|
2017
|
||
Prior service cost/(credit)
|
6.1
|
|
|
3.9
|
|
Net actuarial loss/(gain)
|
136.3
|
|
|
128.3
|
|
Total
|
142.4
|
|
|
132.2
|
|
$ in millions
|
Retirement Plans
|
|
Prior service cost/(credit)
|
0.2
|
|
Net actuarial loss/(gain)
|
2.9
|
|
Total
|
3.1
|
|
|
Retirement Plans
|
||||
$ in millions
|
2018
|
|
2017
|
||
Plans with accumulated and projected benefit obligation in excess of plan assets:
|
|
|
|
||
Accumulated and projected benefit obligation
|
467.3
|
|
|
539.4
|
|
Fair value of plan assets
|
418.6
|
|
|
474.1
|
|
|
Retirement Plans
|
|||||||
$ in millions
|
2018
|
|
2017
|
|
2016
|
|||
Service cost
|
3.8
|
|
|
2.3
|
|
|
4.6
|
|
Interest cost
|
12.6
|
|
|
14.1
|
|
|
16.5
|
|
Expected return on plan assets
|
(22.0
|
)
|
|
(22.6
|
)
|
|
(21.7
|
)
|
Amortization of prior service cost/(credit)
|
0.2
|
|
|
0.2
|
|
|
—
|
|
Amortization of net actuarial (gain)/loss
|
2.1
|
|
|
3.0
|
|
|
1.8
|
|
Settlement
|
3.1
|
|
|
7.3
|
|
|
—
|
|
Net periodic benefit cost/(credit)
|
(0.2
|
)
|
|
4.3
|
|
|
1.2
|
|
$ in millions
|
Retirement Plans
|
|
% of Plan Assets
|
||
Cash and cash equivalents
|
20.4
|
|
|
4.7
|
%
|
Fund investments
|
169.5
|
|
|
39.4
|
%
|
Equity securities
|
136.9
|
|
|
31.8
|
%
|
Government debt securities
|
20.3
|
|
|
4.7
|
%
|
Guaranteed investments contracts
|
11.9
|
|
|
2.8
|
%
|
Other assets
|
71.2
|
|
|
16.6
|
%
|
Total
|
430.2
|
|
|
100.0
|
%
|
$ in millions
|
Retirement Plans
|
|
% of Plan Assets
|
||
Cash and cash equivalents
|
10.7
|
|
|
2.2
|
%
|
Fund investments
|
227.9
|
|
|
46.8
|
%
|
Equity securities
|
133.9
|
|
|
27.5
|
%
|
Government debt securities
|
20.9
|
|
|
4.3
|
%
|
Guaranteed investments contracts
|
13.4
|
|
|
2.8
|
%
|
Other assets
|
80.1
|
|
|
16.5
|
%
|
Total
|
486.9
|
|
|
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.
|
$ in millions
|
Retirement Plans
|
|
Expected benefit payments:
|
|
|
2019
|
8.7
|
|
2020
|
9.0
|
|
2021
|
9.2
|
|
2022
|
9.5
|
|
2023
|
9.8
|
|
Thereafter in the succeeding five years
|
55.4
|
|
$ in millions
|
Total
|
|
Buildings
|
|
Other
|
|||
2019
|
61.6
|
|
|
59.4
|
|
|
2.2
|
|
2020
|
56.3
|
|
|
54.2
|
|
|
2.1
|
|
2021
|
49.3
|
|
|
48.3
|
|
|
1.0
|
|
2022
|
42.8
|
|
|
42.6
|
|
|
0.2
|
|
2023
|
36.7
|
|
|
36.7
|
|
|
—
|
|
Thereafter
|
53.5
|
|
|
53.5
|
|
|
—
|
|
Gross lease commitments
|
300.2
|
|
|
294.7
|
|
|
5.5
|
|
Less: future minimum payments expected to be received under non-cancelable subleases
|
2.5
|
|
|
2.5
|
|
|
—
|
|
Net lease commitments
|
297.7
|
|
|
292.2
|
|
|
5.5
|
|
$ in millions
|
2018
|
|
2017
|
|
2016
|
|||
Other gains:
|
|
|
|
|
|
|||
Gain on sale of investments
|
6.9
|
|
|
11.3
|
|
|
1.5
|
|
Gain on equity investments and total return swap, net
|
—
|
|
|
40.4
|
|
|
14.2
|
|
Foreign exchange hedge gain
|
0.1
|
|
|
—
|
|
|
22.0
|
|
Gain on contingent consideration liability
|
0.9
|
|
|
7.6
|
|
|
—
|
|
Net foreign exchange gains
|
—
|
|
|
16.2
|
|
|
—
|
|
Other realized gains
|
—
|
|
|
0.2
|
|
|
1.4
|
|
Non-service pensions gains
|
4.4
|
|
|
—
|
|
|
24.0
|
|
Total other gains
|
12.3
|
|
|
75.7
|
|
|
63.1
|
|
Other losses:
|
|
|
|
|
|
|||
Other-than-temporary impairment of available-for-sale investments
|
(3.9
|
)
|
|
(3.2
|
)
|
|
—
|
|
Loss on equity investments and total return swap, net
|
(46.5
|
)
|
|
—
|
|
|
—
|
|
Loss on contingent consideration liability
|
—
|
|
|
—
|
|
|
(7.4
|
)
|
Net foreign exchange losses
|
(1.9
|
)
|
|
—
|
|
|
—
|
|
Foreign exchange hedge loss
|
—
|
|
|
(21.0
|
)
|
|
(6.0
|
)
|
Other realized losses
|
—
|
|
|
—
|
|
|
(2.8
|
)
|
Non-service pension costs
|
—
|
|
|
(2.0
|
)
|
|
—
|
|
Total other losses
|
(52.3
|
)
|
|
(26.2
|
)
|
|
(16.2
|
)
|
Other gains and losses, net
|
(40.0
|
)
|
|
49.5
|
|
|
46.9
|
|
$ in millions
|
2018
|
|
2017
|
||
Deferred tax assets:
|
|
|
|
||
Deferred compensation arrangements
|
62.0
|
|
|
57.6
|
|
Accrued rent expenses
|
4.8
|
|
|
7.2
|
|
Tax loss carryforwards
|
93.0
|
|
|
94.6
|
|
Postretirement medical, pension and other benefits
|
18.9
|
|
|
16.6
|
|
Investment basis differences
|
34.0
|
|
|
32.8
|
|
Accrued bonus
|
14.4
|
|
|
8.8
|
|
Other
|
15.1
|
|
|
17.2
|
|
Total deferred tax assets
|
242.2
|
|
|
234.8
|
|
Valuation allowance
|
(94.1
|
)
|
|
(94.7
|
)
|
Deferred tax assets, net of valuation allowance
|
148.1
|
|
|
140.1
|
|
Deferred tax liabilities:
|
|
|
|
|
|
Deferred sales commissions
|
(7.7
|
)
|
|
(11.0
|
)
|
Goodwill and intangibles
|
(417.5
|
)
|
|
(377.3
|
)
|
Fixed assets
|
(34.9
|
)
|
|
(19.2
|
)
|
Other
|
(10.8
|
)
|
|
(8.8
|
)
|
Total deferred tax liabilities
|
(470.9
|
)
|
|
(416.3
|
)
|
Net deferred tax assets/(liabilities)
|
(322.8
|
)
|
|
(276.2
|
)
|
|
2018
|
|
2017
|
|
2016
|
|||
Statutory Rate
|
21.0
|
%
|
|
35.0
|
%
|
|
35.0
|
%
|
Foreign jurisdiction statutory income tax rates
|
0.2
|
%
|
|
(9.6
|
)%
|
|
(8.1
|
)%
|
State taxes, net of federal tax effect
|
2.8
|
%
|
|
2.2
|
%
|
|
1.6
|
%
|
U.S. Tax Reform Impact
|
(1.3
|
)%
|
|
(9.3
|
)%
|
|
—
|
%
|
Change in valuation allowance for unrecognized tax losses
|
0.4
|
%
|
|
0.4
|
%
|
|
(0.4
|
)%
|
Share Based Compensation
|
(0.2
|
)%
|
|
(0.3
|
)%
|
|
—
|
%
|
Other
|
(0.5
|
)%
|
|
1.2
|
%
|
|
0.3
|
%
|
(Gains)/losses attributable to noncontrolling interests
|
—
|
%
|
|
(0.8
|
)%
|
|
(0.4
|
)%
|
Effective tax rate per Consolidated Statements of Income
|
22.4
|
%
|
|
18.8
|
%
|
|
28.0
|
%
|
$ in millions (except percentages)
|
2018
|
|
2017
|
|
2016
|
|||
U.S.
|
472.9
|
|
|
638.4
|
|
|
537.5
|
|
CIP - U.S.
|
18.9
|
|
|
0.1
|
|
|
2.4
|
|
Total U.S. income before income taxes
|
491.8
|
|
|
638.5
|
|
|
539.9
|
|
Foreign
|
656.1
|
|
|
754.8
|
|
|
652.0
|
|
CIP - Foreign
|
(9.8
|
)
|
|
35.9
|
|
|
14.7
|
|
Total Foreign income before income taxes
|
646.3
|
|
|
790.7
|
|
|
666.7
|
|
Income before income taxes
|
1,138.1
|
|
|
1,429.2
|
|
|
1,206.6
|
|
$ in millions
|
Gross Unrecognized Income Tax Benefits
|
|
Balance at January 1, 2016
|
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
|
|
Additions for tax positions related to the current year
|
0.9
|
|
Additions for tax positions related to prior years
|
11.5
|
|
Other reductions for tax positions related to prior years
|
(0.2
|
)
|
Reductions for statute closings
|
(3.1
|
)
|
Balance at December 31, 2017
|
19.6
|
|
Additions for tax positions related to the current year
|
1.0
|
|
Additions for tax positions related to prior years
|
0.1
|
|
Other reductions for tax positions related to prior years
|
(0.2
|
)
|
Reductions for statute closings
|
(0.5
|
)
|
Balance at December 31, 2018
|
20.0
|
|
|
Years ended December 31,
|
||||||||||
In millions, except per share data
|
2018
|
|
2017
|
|
2016
|
||||||
Net income
|
|
$883.1
|
|
|
|
$1,161.0
|
|
|
|
$868.3
|
|
Net (income)/loss attributable to noncontrolling interests in consolidated entities
|
(0.3
|
)
|
|
(33.7
|
)
|
|
(14.1
|
)
|
|||
Net income attributable to Invesco Ltd.
|
882.8
|
|
|
1,127.3
|
|
|
854.2
|
|
|||
Less: Allocation of earnings to restricted shares
|
(26.9
|
)
|
|
(33.7
|
)
|
|
(24.8
|
)
|
|||
Net income attributable to common shareholders
|
|
$855.9
|
|
|
|
$1,093.6
|
|
|
|
$829.4
|
|
|
|
|
|
|
|
||||||
Invesco Ltd:
|
|
|
|
|
|
||||||
Weighted average shares outstanding - basic
|
412.4
|
|
|
409.4
|
|
|
414.7
|
|
|||
Dilutive effect of non-participating share-based awards
|
0.1
|
|
|
0.5
|
|
|
0.3
|
|
|||
Weighted average shares outstanding - diluted
|
412.5
|
|
|
409.9
|
|
|
415.0
|
|
|||
|
|
|
|
|
|
||||||
Common shareholders:
|
|
|
|
|
|
||||||
Weighted average shares outstanding - basic
|
412.4
|
|
|
409.4
|
|
|
414.7
|
|
|||
Less: Weighted average restricted shares
|
(12.6
|
)
|
|
(12.2
|
)
|
|
(12.1
|
)
|
|||
Weighted average common shares outstanding- basic
|
399.8
|
|
|
397.2
|
|
|
402.6
|
|
|||
Dilutive effect of non-participating share-based awards
|
0.1
|
|
|
0.5
|
|
|
0.3
|
|
|||
Weighted average common shares outstanding - diluted
|
399.9
|
|
|
397.7
|
|
|
402.9
|
|
|||
|
|
|
|
|
|
||||||
Earnings per share:
|
|
|
|
|
|
||||||
Basic earnings per share
|
$2.14
|
|
$2.75
|
|
$2.06
|
||||||
Diluted earnings per share
|
$2.14
|
|
$2.75
|
|
$2.06
|
||||||
Dividends declared per share
|
$1.19
|
|
$1.15
|
|
$1.11
|
$ in millions
|
U.S.
|
|
U.K.
|
|
Continental Europe/Ireland
|
|
Canada
|
|
Asia
|
|
Total
|
||||||
For the year ended December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Revenue from external customers
|
2,918.1
|
|
|
835.0
|
|
|
1,085.0
|
|
|
343.6
|
|
|
132.4
|
|
|
5,314.1
|
|
Inter-company revenue
|
4.5
|
|
|
142.2
|
|
|
(269.1
|
)
|
|
(21.2
|
)
|
|
143.6
|
|
|
—
|
|
Total operating revenues
|
2,922.6
|
|
|
977.2
|
|
|
815.9
|
|
|
322.4
|
|
|
276.0
|
|
|
5,314.1
|
|
Long-lived assets
|
311.7
|
|
|
122.8
|
|
|
8.1
|
|
|
7.7
|
|
|
18.4
|
|
|
468.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
For the year ended December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Revenue from external customers
|
2,747.9
|
|
|
955.8
|
|
|
999.6
|
|
|
339.0
|
|
|
118.0
|
|
|
5,160.3
|
|
Inter-company revenue
|
(5.6
|
)
|
|
122.8
|
|
|
(243.0
|
)
|
|
(16.9
|
)
|
|
142.7
|
|
|
—
|
|
Total operating revenues
|
2,742.3
|
|
|
1,078.6
|
|
|
756.6
|
|
|
322.1
|
|
|
260.7
|
|
|
5,160.3
|
|
Long-lived assets
|
332.2
|
|
|
118.3
|
|
|
10.0
|
|
|
8.9
|
|
|
21.3
|
|
|
490.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
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
|
|
|
As of
|
||||
$ in millions
|
December 31, 2018
|
|
December 31, 2017
|
||
Cash and cash equivalents of CIP
|
657.7
|
|
|
511.3
|
|
Accounts receivable and other assets of CIP
|
110.8
|
|
|
131.5
|
|
Investments of CIP
|
6,213.5
|
|
|
5,658.0
|
|
Less: Debt of CIP
|
(5,226.0
|
)
|
|
(4,799.8
|
)
|
Less: Other liabilities of CIP
|
(387.6
|
)
|
|
(498.8
|
)
|
Less: Retained earnings
|
7.9
|
|
|
16.7
|
|
Less: Accumulated other comprehensive income, net of tax
|
(7.8
|
)
|
|
(16.6
|
)
|
Less: Equity attributable to redeemable noncontrolling interests
|
(396.2
|
)
|
|
(243.2
|
)
|
Less: Equity attributable to nonredeemable noncontrolling interests
|
(356.5
|
)
|
|
(258.6
|
)
|
Invesco's net interests in CIP
|
615.8
|
|
|
500.5
|
|
|
|
Years ended December 31,
|
|||||||
$ in millions
|
|
2018
|
|
2017
|
|
2016
|
|||
Total operating revenues
|
|
(28.6
|
)
|
|
(32.4
|
)
|
|
(22.3
|
)
|
Total operating expenses
|
|
16.2
|
|
|
10.5
|
|
|
28.7
|
|
Operating income
|
|
(44.8
|
)
|
|
(42.9
|
)
|
|
(51.0
|
)
|
Equity in earnings of unconsolidated affiliates
|
|
(10.2
|
)
|
|
(20.0
|
)
|
|
(8.9
|
)
|
Interest and dividend income
|
|
—
|
|
|
—
|
|
|
(0.3
|
)
|
Other gains and losses, net
|
|
34.5
|
|
|
(38.4
|
)
|
|
(1.9
|
)
|
Interest and dividend income of CIP
|
|
275.4
|
|
|
211.6
|
|
|
195.3
|
|
Interest expense of CIP
|
|
(190.7
|
)
|
|
(155.3
|
)
|
|
(123.5
|
)
|
Other gains/(losses) of CIP, net
|
|
(55.1
|
)
|
|
81.0
|
|
|
7.4
|
|
Income before income taxes
|
|
9.1
|
|
|
36.0
|
|
|
17.1
|
|
Income tax provision
|
|
—
|
|
|
—
|
|
|
—
|
|
Net income
|
|
9.1
|
|
|
36.0
|
|
|
17.1
|
|
Net (income)/loss attributable to noncontrolling interests in consolidated entities
|
|
(0.3
|
)
|
|
(33.7
|
)
|
|
(14.1
|
)
|
Net income attributable to Invesco Ltd.
|
|
8.8
|
|
|
2.3
|
|
|
3.0
|
|
|
|
For the year ended December 31, 2018
|
|
For the year ended December 31, 2017
|
|||||
$ in millions
|
|
VIEs
|
|
VOEs
|
|
VIEs
|
|||
Cash and cash equivalents of CIP
|
|
400.7
|
|
|
—
|
|
|
277.8
|
|
Accounts receivable and other assets of CIP
|
|
6.6
|
|
|
1.9
|
|
|
11.5
|
|
Investments of CIP
|
|
914.8
|
|
|
172.6
|
|
|
851.8
|
|
Total assets
|
|
1,322.1
|
|
|
174.5
|
|
|
1,141.1
|
|
|
|
|
|
|
|
|
|||
Debt of CIP
|
|
1,017.1
|
|
|
—
|
|
|
544.2
|
|
Other liabilities of CIP
|
|
38.5
|
|
|
—
|
|
|
331.5
|
|
Total liabilities
|
|
1,055.6
|
|
|
—
|
|
|
875.7
|
|
Total equity
|
|
266.5
|
|
|
174.5
|
|
|
265.4
|
|
Total liabilities and equity
|
|
1,322.1
|
|
|
174.5
|
|
|
1,141.1
|
|
|
|
For the year ended December 31, 2018
|
|
For the year ended December 31, 2017
|
||||||||
$ in millions
|
|
VIEs
|
|
VOEs
|
|
VIEs
|
|
VOEs
|
||||
Cash and cash equivalents of CIP
|
|
104.8
|
|
|
—
|
|
|
15.8
|
|
|
—
|
|
Accounts receivable and other assets of CIP
|
|
26.3
|
|
|
0.1
|
|
|
4.1
|
|
|
0.2
|
|
Investments of CIP
|
|
917.4
|
|
|
5.9
|
|
|
358.1
|
|
|
49.8
|
|
Total assets
|
|
1,048.5
|
|
|
6.0
|
|
|
378.0
|
|
|
50.0
|
|
|
|
|
|
—
|
|
|
|
|
|
|||
Debt of CIP
|
|
938.4
|
|
|
—
|
|
|
4.2
|
|
|
—
|
|
Other liabilities of CIP
|
|
8.9
|
|
|
—
|
|
|
3.1
|
|
|
—
|
|
Total liabilities
|
|
947.3
|
|
|
—
|
|
|
7.3
|
|
|
—
|
|
Total equity
|
|
101.2
|
|
|
6.0
|
|
|
370.7
|
|
|
50.0
|
|
Total liabilities and equity
|
|
1,048.5
|
|
|
6.0
|
|
|
378.0
|
|
|
50.0
|
|
|
As of December 31, 2018
|
|||||||||||||
$ 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
|
5,117.0
|
|
|
—
|
|
|
5,117.0
|
|
|
—
|
|
|
—
|
|
Bonds
|
636.0
|
|
|
—
|
|
|
636.0
|
|
|
—
|
|
|
—
|
|
Equity securities
|
241.2
|
|
|
208.1
|
|
|
33.1
|
|
|
—
|
|
|
—
|
|
Equity and fixed income mutual funds
|
18.8
|
|
|
18.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Investments in other private equity funds
|
188.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
188.7
|
|
Real estate investments
|
11.8
|
|
|
—
|
|
|
—
|
|
|
11.8
|
|
|
—
|
|
Total assets at fair value
|
6,213.5
|
|
|
226.9
|
|
|
5,786.1
|
|
|
11.8
|
|
|
188.7
|
|
|
As of December 31, 2017
|
|||||||||||||
$ 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
|
4,894.2
|
|
|
—
|
|
|
4,894.2
|
|
|
—
|
|
|
—
|
|
Bonds
|
302.0
|
|
|
—
|
|
|
302.0
|
|
|
—
|
|
|
—
|
|
Equity securities
|
203.2
|
|
|
198.8
|
|
|
4.4
|
|
|
—
|
|
|
—
|
|
Equity and fixed income mutual funds
|
19.0
|
|
|
19.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Investments in other private equity funds
|
163.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
163.4
|
|
Real estate investments
|
76.2
|
|
|
—
|
|
|
—
|
|
|
76.2
|
|
|
—
|
|
Total assets at fair value
|
5,658.0
|
|
|
217.8
|
|
|
5,200.6
|
|
|
76.2
|
|
|
163.4
|
|
|
Year ended December 31, 2018
|
|
Year ended December 31, 2017
|
||
$ in millions
|
Level 3 Assets
|
|
Level 3 Assets
|
||
Beginning balance
|
76.2
|
|
|
40.7
|
|
Purchases
|
13.0
|
|
|
15.1
|
|
Sales
|
(84.8
|
)
|
|
(4.5
|
)
|
Gains and losses included in the Consolidated Statements of Income
(1)
|
7.4
|
|
|
24.9
|
|
Ending balance
|
11.8
|
|
|
76.2
|
|
(1)
|
Included in gains/(losses) of CIP, net in the Consolidated Statement of Income for the year ended
December 31, 2018
are
$1.1 million
in net unrealized
losses
attributable to investments still held at
December 31, 2018
by CIP (year ended
December 31, 2017
:
$24.5 million
net unrealized
gains
attributable to investments still held at
December 31, 2017
).
|
Assets and Liabilities *
|
|
Fair Value at December 31, 2017 ($ in millions)
|
|
Valuation Technique
|
|
Unobservable Inputs
|
|
Range
|
|
Weighted Average (by fair value)
|
|
Real Estate Investments
|
|
76.2
|
|
Discounted Cash Flow
|
|
Discount rate
|
|
7% - 33%
|
|
17.00
|
%
|
|
|
|
|
|
|
Terminal capitalization rate
|
|
5.30%
|
|
5.30
|
%
|
|
|
|
|
|
|
Average rent growth rate
|
|
2% - 3%
|
|
2.50
|
%
|
•
|
For real estate investments, a change in the average rent growth rate would result in a directionally-opposite change in the assumptions for discount rate and terminal capitalization rate. Significant increases in the average growth rate would result in significantly higher fair values. Significant increases in the assumptions for discount rate and terminal capitalization rate in isolation would result in significantly lower fair value measurements.
|
|
|
December 31, 2018
|
|
December 31, 2017
|
||||||||
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)
|
|
$188.7
|
|
$101.9
|
|
6.1 years
|
|
$163.4
|
|
$53.9
|
|
5.5 years
|
(1)
|
These investments are not subject to redemption; however, for certain funds, the investors may sell or transfer their interest, which may require approval by the general partner of the underlying funds.
|
(2)
|
These investments are expected to be returned through distributions as a result of liquidations of the funds' underlying assets over the weighted average periods indicated.
|
|
Years ended December 31,
|
|||||||
$ in millions
|
2018
|
|
2017
|
|
2016
|
|||
Affiliated operating revenues:
|
|
|
|
|
|
|||
Investment management fees
|
3,591.7
|
|
|
3,624.7
|
|
|
3,274.3
|
|
Service and distribution fees
|
945.8
|
|
|
851.2
|
|
|
822.3
|
|
Performance fees
|
17.5
|
|
|
73.8
|
|
|
21.5
|
|
Other
|
192.4
|
|
|
59.1
|
|
|
79.8
|
|
Total affiliated operating revenues
|
4,747.4
|
|
|
4,608.8
|
|
|
4,197.9
|
|
|
As of December 31,
|
||||
$ in millions
|
2018
|
|
2017
|
||
Affiliated asset balances:
|
|
|
|
||
Cash and cash equivalents
|
367.6
|
|
|
875.5
|
|
Unsettled fund receivables
|
105.0
|
|
|
204.0
|
|
Accounts receivable
|
391.4
|
|
|
359.9
|
|
Investments
|
655.7
|
|
|
608.5
|
|
Assets held for policyholders
|
11,384.5
|
|
|
12,444.2
|
|
Other assets
|
3.2
|
|
|
9.2
|
|
Total affiliated asset balances
|
12,907.4
|
|
|
14,501.3
|
|
|
|
|
|
||
Affiliated liability balances:
|
|
|
|
||
Accrued compensation and benefits
|
83.2
|
|
|
90.7
|
|
Accounts payable and accrued expenses
|
64.8
|
|
|
64.5
|
|
Unsettled fund payables
|
100.3
|
|
|
288.8
|
|
Total affiliated liability balances
|
248.3
|
|
|
444.0
|
|
3.1
|
|
3.2
|
|
4.1
|
|
4.2
|
|
4.3
|
|
4.4
|
|
4.5
|
4.6
|
|
4.7
|
|
4.8
|
|
4.9
|
|
4.10
|
|
10.1
|
|
10.2
|
|
10.3
|
|
10.4
|
|
10.5
|
|
10.6
|
|
10.7
|
|
10.8
|
|
10.9
|
|
10.10
|
|
10.11
|
|
10.12
|
|
10.13
|
|
10.14
|
10.15
|
|
10.16
|
|
10.17
|
|
10.18
|
|
10.19
|
|
10.20
|
|
10.21
|
|
10.22
|
|
10.23
|
|
10.24
|
|
10.25
|
|
10.26
|
|
10.27
|
|
10.28
|
|
10.29
|
|
10.30
|
|
10.31
|
|
10.32
|
|
10.33
|
Invesco Ltd.
|
|
|
|
By:
|
/s/ MARTIN L. FLANAGAN
|
Name:
|
Martin L. Flanagan
|
Title:
|
President and Chief Executive Officer
|
|
|
Date:
|
February 21, 2019
|
Name
|
Title
|
Date
|
|
|
|
/s/ MARTIN L. FLANAGAN
|
Chief Executive Officer (Principal Executive Officer) and President; Director
|
February 21, 2019
|
Martin L. Flanagan
|
|
|
/s/ LOREN M. STARR
|
Senior Managing Director and Chief Financial Officer (Principal Financial Officer)
|
February 21, 2019
|
Loren M. Starr
|
|
|
/s/ ANNETTE LEGE
|
Chief Accounting Officer (Principal Accounting Officer)
|
February 21, 2019
|
Annette Lege
|
|
|
/s/ BEN F. JOHNSON III
|
Chairman and Director
|
February 21, 2019
|
Ben F. Johnson III
|
|
|
/s/ SARAH E. BESHAR
|
Director
|
February 21, 2019
|
Sarah E. Beshar
|
|
|
/s/ JOSEPH R. CANION
|
Director
|
February 21, 2019
|
Joseph R. Canion
|
|
|
/s/ C. ROBERT HENRIKSON
|
Director
|
February 21, 2019
|
C. Robert Henrikson
|
|
|
/s/ DENIS KESSLER
|
Director
|
February 21, 2019
|
Denis Kessler
|
|
|
/s/ SIR NIGEL SHEINWALD
|
Director
|
February 21, 2019
|
Sir Nigel Sheinwald
|
|
|
/s/ G. RICHARD WAGONER, JR.
|
Director
|
February 21, 2019
|
G. Richard Wagoner, Jr.
|
|
|
/s/ PHOEBE A. WOOD
|
Director
|
February 21, 2019
|
Phoebe A. Wood
|
|
|
(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)
|
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
|
(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)
|
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
|
(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
|
Company Name
|
|
Jurisdiction
|
Accretve Asset Management, LLC
|
|
Washington
|
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
|
Coff Associates (Cayman) Limited
|
|
Grand Cayman
|
Elliot Associates 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
|
India Asset Recovery Management Limited
|
|
Mauritius
|
IntelliFlo Bidco Limited
|
|
United Kingdom
|
IntelliFlo Midco Limited
|
|
United Kingdom
|
IntelliFlo Holdings 2013 Limited
|
|
United Kingdom
|
IntelliFlo Intermediate Holdings Limited
|
|
United Kingdom
|
IntelliFlo Limited
|
|
United Kingdom
|
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 (Schweiz) 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 Management LLC
|
|
Delaware
|
Company Name
|
|
Jurisdiction
|
Invesco Capital Markets, Inc.
|
|
Delaware
|
Invesco (Cayman Islands) Ltd.
|
|
Cayman Islands
|
Invesco Continental Europe Services SA
|
|
Luxembourg
|
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 DAC
|
|
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 Holding Company (US) Limited
|
|
Delaware
|
INVESCO Holland B.V.
|
|
Netherlands
|
Invesco Hong Kong Limited
|
|
Hong Kong
|
Invesco Inc.
|
|
Nova Scotia
|
Invesco Indexing LLC
|
|
Delaware
|
Invesco (India) Private Limited
|
|
India
|
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 Management (Shanghai) Limited
|
|
China
|
Invesco Investment Management Limited
|
|
Ireland
|
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 S.A.
|
|
Luxembourg
|
Invesco North American Group Limited
|
|
United Kingdom
|
Invesco Overseas Investment Fund Management (Shanghai) Limited
|
|
China
|
Invesco Pacific Group Limited
|
|
Oxfordshire
|
Company Name
|
|
Jurisdiction
|
Invesco Pacific Partner Ltd
|
|
Bermuda
|
Invesco Pension Limited
|
|
Oxfordshire
|
Invesco (Nominees) Limited
|
|
Oxfordshire
|
INVESCO Polska Sp.z.o.o.
|
|
Poland
|
INVESCO Private Capital Investments, Inc.
|
|
Delaware
|
Invesco Private Capital, Inc.
|
|
Delaware
|
Invesco Real Estate Advisors (Shanghai) Limited
|
|
Shanghai
|
Invesco Real Estate Investment (Asia) LLC
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Delaware
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Invesco Real Estate Investment Asia Pacific Limited
|
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Hong Kong
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Invesco Real Estate Korea
|
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Republic of Korea
|
Invesco Real Estate Limited
|
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United Kingdom
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Invesco Real Estate Management S.a.r.l.
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Luxembourg
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INVESCO Real Estate s.r.o.
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Czech Republic
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Invesco Real Estate UK Residential S.a.r.l.
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Luxembourg
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Invesco Real Estate Value S.a.r.l.
|
|
Luxembourg
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Invesco Realty Asia I, Ltd.
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Cayman Island
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Invesco Realty, Inc.
|
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Delaware
|
Invesco Senior Secured Management, Inc.
|
|
Delaware
|
Invesco Services (Bahamas) Private Limited
|
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Lyford Cay, Nassau
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Invesco Singapore Ptd. Ltd.
|
|
Singapore
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Invesco Specialized Products LLC
|
|
United States
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Invesco Taiwan Limited
|
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Taiwan
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Invesco Trust Company
|
|
Texas
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Invesco Trustee Private Ltd.
|
|
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
|
|
Hong Kong
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Invesco WLR Ross (Beijing) Management Consulting Co. Ltd.
|
|
China
|
IRE AF II, Ltd.
|
|
Cayman Island
|
IRE AF III, Ltd.
|
|
Cayman Island
|
IRE Asia Fund I LP
|
|
Cayman Island
|
IREPAC, Ltd
|
|
Cayman Island
|
IRE (Cayman) Limited
|
|
Cayman Island
|
IVZ Finance DAC
|
|
Ireland
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IVZ Finance S.a.r.l.
|
|
Luxembourg
|
IVZ Immobilien Verwaltunga GmbH
|
|
Germany
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IVZ Mauritius Services Private Limited
|
|
Port Louis
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IVZ UK Limited
|
|
Oxfordshire
|
James Bryant Limited
|
|
Oxfordshire
|
Jemstep, Inc.
|
|
Delaware
|
Perpetual Limited
|
|
Oxfordshire
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Perpetual Portfolio Management Limited
|
|
Oxfordshire
|
POCZTYLION - ARKA POWSZECHNE TOWARZYSTWO EMERYTALNE SPOLKA AKCYJNA
|
|
Poland
|
Company Name
|
|
Jurisdiction
|
Ross CG Management LP
|
|
New York
|
Ross Expansion Associates LP
|
|
New York
|
Sermon Lane Nominees Limited
|
|
Oxfordshire
|
Source Exchange Traded Investments LLC
|
|
Delaware
|
Source Holdings Limited
|
|
Cayman Island
|
Source Investment Products LLC
|
|
Delaware
|
Source Schweiz GmbH
|
|
Switzerland
|
Trimark Investments Ltd.
|
|
Canada
|
VV Immobilien Verwaltungs GmbH
|
|
Germany
|
VV Immobilien Verwaltungs und Beteiligungs GmbH
|
|
Germany
|
WLR China Energy Associates Ltd
|
|
Cayman Islands
|
Wessex Winchester GP Limited
|
|
Oxfordshire
|
WLR Euro Wagon Management Ltd.
|
|
New York
|
W.L. Ross & Co. (India) LLC
|
|
Delaware
|
W.L. Ross & Co., LLC
|
|
Delaware
|
W.L. Ross Dip Management LLC
|
|
New York
|
W.L. Ross GW Holdings (Cayman) Ltd
|
|
Cayman Islands
|
W.L. Ross (India) Private Limited
|
|
New York
|
1.
|
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;
|
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 21, 2019
|
|
/s/ MARTIN L. FLANAGAN
|
|
|
Martin L. Flanagan
|
|
|
President and Chief Executive Officer
|
1.
|
I have reviewed this Annual Report on Form 10-K of Invesco Ltd.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
February 21, 2019
|
|
/s/ LOREN M. STARR
|
|
|
Loren M. Starr
|
|
|
Senior Managing Director and Chief Financial Officer
|
1.
|
the Report fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934; and
|
2.
|
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
February 21, 2019
|
|
/s/ MARTIN L. FLANAGAN
|
|
|
Martin L. Flanagan
|
|
|
President and Chief Executive Officer
|
1.
|
the Report fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934; and
|
2.
|
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
February 21, 2019
|
|
/s/ LOREN M. STARR
|
|
|
Loren M. Starr
|
|
|
Senior Managing Director and Chief Financial Officer
|