Brendan Hawkins

Brendan Hawkins inquired about Invesco's compensation ratio, historically 38%-42%, and how the QQQ conversion and other factors might impact the outlook for this ratio, potentially leading to an adjustment of the historical range.

Answer

CFO Allison Dukes stated that the compensation ratio is managed on a full-year basis, ending at 42.7% in 2025. She expects it to return to the high end of the 38%-42% range in 2026, supported by the stabilization of revenue from the QQQ. She emphasized the company's commitment to continued investment in the business and strategic hiring in growth areas.

Brendan Hawkins (BMO Capital Markets) inquired about the comp ratio outlook, considering the impact of the QQQ and other expense dynamics, and whether the historical 38%-42% range for the comp ratio should be adjusted.

Answer

Allison Dukes (CFO) clarified that the comp ratio is managed on a full-year basis, not quarter-to-quarter. She noted that the 2025 comp ratio ended at 42.7%, above the historical guide. For 2026, she expects the comp ratio to return to the high end of the 38%-42% range, aided by the QQQ's revenue stabilization. Dukes emphasized that the company aims to continue investing in growth areas and remixing its expense base.