| Metric / Quarter                                      | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|-------------------------------------------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| **Net long-term flows ($ billion)**                   | -3.2  **[0000914208-23-000018_ivzpressrelease4q2022.htm:0]**  | 2.9  **[0000914208-23-000326_ivzpressrelease1q2023.htm:1]**  | -2.0  **[0000914208-23-000410_ivzpressrelease2q2023.htm:1]**  | 2.6  **[0000914208-23-000474_ivzpressrelease3q2023.htm:1]**  | 6.7  **[0000914208-24-000022_ivzpressrelease4q2023.htm:0]**  | 6.3  **[0000914208-24-000249_ivzpressrelease1q2024.htm:1]**  | 16.7  **[0000914208-24-000331_ivzpressrelease2q2024.htm:1]**  | 16.5  **[0000914208-24-000423_ivzpressrelease3q2024.htm:0]**  |
| **Net flows in money market funds ($ billion)**       | 30.1  **[0000914208-23-000018_ivzpressrelease4q2022.htm:12]**  | 7.7  **[0000914208-23-000326_ivzpressrelease1q2023.htm:1]**  | 15.4  **[0000914208-23-000410_ivzpressrelease2q2023.htm:1]**  | -16.1  **[0000914208-23-000474_ivzpressrelease3q2023.htm:1]**  | -18.1  **[0000914208-24-000022_ivzpressrelease4q2023.htm:1]**  | 0.7  **[0000914208-24-000249_ivzpressrelease1q2024.htm:1]**  | 4.9  **[0000914208-24-000331_ivzpressrelease2q2024.htm:1]**  | -7.3  **[0000914208-24-000423_ivzpressrelease3q2024.htm:0]**  |
| **Reinvested distributions ($ billion)**              | 11.7  **[0000914208-23-000018_ivzpressrelease4q2022.htm:12]**  | 1.0  **[0000914208-23-000326_ivzpressrelease1q2023.htm:12]**  | 1.0  **[0000914208-23-000410_ivzpressrelease2q2023.htm:11]**  | 1.1  **[0000914208-23-000474_ivzpressrelease3q2023.htm:10]**  | 1.1  **[0000914208-24-000249_ivzpressrelease1q2024.htm:13]**  | 1.1  **[0000914208-24-000249_ivzpressrelease1q2024.htm:13]**  | 1.4  **[0000914208-24-000335_ivz-20240630.htm:24]**  | 1.0  **[0000914208-24-000423_ivzpressrelease3q2024.htm:13]**  |
| **Market gains and losses ($ billion)**               | 61.0  **[IVZ_3346152_4]**  | 61.9  **[0000914208-23-000338_ivz-20230331.htm:20]**  | N/A | -34.2  **[0000914208-23-000479_ivz-20230930.htm:23]**  | 161.1  **[0000914208-24-000219_ivz-20231231.htm:54]**  | 68.0  **[0000914208-24-000276_ivz-20240331.htm:19]**  | 27.4  **[0000914208-24-000335_ivz-20240630.htm:22]**  | 49.8  **[0000914208-24-000427_ivz-20240930.htm:22]**  |
| **Foreign currency translation ($ billion)**          | N/A | 0.0  **[0000914208-23-000326_ivzpressrelease1q2023.htm:13]**  | N/A | -6.5  **[0000914208-23-000474_ivzpressrelease3q2023.htm:1]**  | N/A | -8.2  **[0000914208-24-000276_ivz-20240331.htm:19]**  | -3.9  **[0000914208-24-000331_ivzpressrelease2q2024.htm:1]**  | 16.3  **[0000914208-24-000423_ivzpressrelease3q2024.htm:0]**  |
| **Net flows in non-management fee earning AUM ($ billion)** | -2.1  **[0000914208-23-000018_ivzpressrelease4q2022.htm:12]**  | -1.6  **[0000914208-23-000338_ivz-20230331.htm:19]**  | 1.1  **[0000914208-23-000410_ivzpressrelease2q2023.htm:1]**  | 3.6  **[0000914208-23-000474_ivzpressrelease3q2023.htm:1]**  | 3.1  **[0000914208-24-000022_ivzpressrelease4q2023.htm:1]**  | 9.5  **[0000914208-24-000249_ivzpressrelease1q2024.htm:1]**  | 6.6  **[0000914208-24-000331_ivzpressrelease2q2024.htm:1]**  | 3.5  **[0000914208-24-000427_ivz-20240930.htm:20]**  |
| **Total net flows ($ billion)**                       | 24.8  **[0000914208-23-000018_ivzpressrelease4q2022.htm:12]**  | 9.0  **[0000914208-23-000326_ivzpressrelease1q2023.htm:1]**  | 14.5  **[0000914208-23-000410_ivzpressrelease2q2023.htm:1]**  | -9.9  **[0000914208-23-000474_ivzpressrelease3q2023.htm:1]**  | 5.3  **[0000914208-24-000022_ivzpressrelease4q2023.htm:1]**  | 16.5  **[0000914208-24-000249_ivzpressrelease1q2024.htm:1]**  | 28.2  **[0000914208-24-000331_ivzpressrelease2q2024.htm:1]**  | 12.7  **[0000914208-24-000423_ivzpressrelease3q2024.htm:0]**  |
| **Net revenue yield excluding performance fees (basis points)** | 35.5  **[0000914208-23-000018_ivzpressrelease4q2022.htm:4]**  | 32.7  **[0000914208-23-000338_ivz-20230331.htm:19]**  | 32.5  **[0000914208-23-000416_ivz-20230630.htm:22]**  | 32.9  **[0000914208-23-000479_ivz-20230930.htm:22]**  | N/A | 30.7  **[0000914208-24-000276_ivz-20240331.htm:23]**  | 30.4  **[0000914208-24-000335_ivz-20240630.htm:21]**  | 30.3  **[0000914208-24-000427_ivz-20240930.htm:21]**  |
| **QQQ ($ billion)**                                   | 152.5  **[0000914208-23-000018_ivzpressrelease4q2022.htm:12]**  | 156.1  **[0000914208-23-000326_ivzpressrelease1q2023.htm:13]**  | 200.0  **[IVZ_3255378_4]**  | 203.4  **[0000914208-23-000474_ivzpressrelease3q2023.htm:14]**  | 209.6  **[0000914208-24-000022_ivzpressrelease4q2023.htm:15]**  | 259.3  **[0000914208-24-000281_ivzaumexhibit991-0424.htm:0]**  | 286.6  **[0000914208-24-000327_ivzaumexhibit991-0624.htm:0]**  | 294.8  **[0000914208-24-000402_ivzaumexhibit991-0924.htm:0]**  |

e2f363e02153f581b88e794428c2701b13a2b36517d7f9343f91967995811c9e

Invesco Ltd. is an independent investment management firm that provides a wide range of active, passive, and alternative investment capabilities to help clients meet their investment goals **[0000914208-24-000219_ivz-20231231.htm:9]**. The company manages approximately $1.6 trillion in assets as of December 31, 2023, and serves clients in over 120 countries **[0000914208-24-000219_ivz-20231231.htm:9]**. Invesco offers retail and institutional investment products across major asset classes, with its retail products distributed through third-party financial intermediaries and institutional products distributed globally to a diverse client base **[0000914208-24-000219_ivz-20231231.htm:12]**. The company's revenue primarily comes from investment management fees based on assets under management, which can be affected by market price fluctuations **[0000914208-24-000335_ivz-20240630.htm:44]** **[0000914208-24-000276_ivz-20240331.htm:36]**.

1. **Retail Investment Products** - Offers a variety of investment options distributed through third-party financial intermediaries, catering to individual investors seeking to achieve their financial objectives.
2. **Institutional Investment Products** - Provides investment solutions to a diversified global client base, including public and private entities, unions, and financial institutions, focusing on meeting the specific needs of institutional investors.

b50a9ae7e1af1e0e5498712c58744a1b3ca4e7f40f542094b463bd821e6aa19d

88459ab46ca04c469564f2061f8ff45b8d15c5d521f5cb0e30abbdbcb34db21b

Total Revenue [USD, Millions]

Cost of Goods Sold (COGS) [USD, Millions]

SG&A [USD, Millions]

R&D [USD, Millions]

Depreciation and Amortization (D&A) [USD, Millions]

Interest Expense [USD, Millions]

Operating Income (EBIT) [USD, Millions]

Net Income [USD, Millions]

EPS - Basic [USD, Per Share]

EPS - Diluted [USD, Per Share]

561426f1d96122dbead5cd5637e12d2332dc02f4f20881700ec1b80160ef063e

| Metric (Unit: Million USD) | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 | Q4 2024 |
|----------------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| Americas                   | **1,083.4**  **[0000914208-23-000338_ivz-20230331.htm:9]**  | **1,108.1**  **[0000914208-23-000416_ivz-20230630.htm:10]**  | **1,107.3**  **[0000914208-23-000479_ivz-20230930.htm:10]**  | N/A     | **1,140.6**  **[0000914208-24-000276_ivz-20240331.htm:9]**  | **1,145.5**  **[0000914208-24-000335_ivz-20240630.htm:10]**  | **1,158.9**  **[0000914208-24-000427_ivz-20240930.htm:10]**  | N/A     |
| Asia-Pacific (APAC)        | **69.9**  **[0000914208-23-000338_ivz-20230331.htm:9]**    | **63.7**  **[0000914208-23-000416_ivz-20230630.htm:10]**    | **64.6**  **[0000914208-23-000479_ivz-20230930.htm:10]**    | N/A     | **68.7**  **[0000914208-24-000276_ivz-20240331.htm:9]**    | **62.1**  **[0000914208-24-000335_ivz-20240630.htm:10]**    | **66.0**  **[0000914208-24-000427_ivz-20240930.htm:10]**    | N/A     |
| Europe, Middle East, and Africa (EMEA) | **264.9**  **[0000914208-23-000338_ivz-20230331.htm:9]**  | **271.0**  **[0000914208-23-000416_ivz-20230630.htm:10]**  | **270.1**  **[0000914208-23-000479_ivz-20230930.htm:10]**  | N/A     | **266.0**  **[0000914208-24-000276_ivz-20240331.htm:9]**  | **275.7**  **[0000914208-24-000335_ivz-20240630.htm:10]**  | **290.5**  **[0000914208-24-000427_ivz-20240930.htm:10]**  | N/A     |
| Total Operating Revenues   | **1,418.2**  **[0000914208-23-000338_ivz-20230331.htm:9]**  | **1,442.8**  **[0000914208-23-000416_ivz-20230630.htm:10]**  | **1,442.0**  **[0000914208-23-000479_ivz-20230930.htm:10]**  | N/A     | **1,475.3**  **[0000914208-24-000276_ivz-20240331.htm:9]**  | **1,483.3**  **[0000914208-24-000335_ivz-20240630.htm:10]**  | **1,515.4**  **[0000914208-24-000427_ivz-20240930.htm:10]**  | N/A     |

06e8a9a2f33d81e705dde2e2131901485b80faa350111727447392b1fe1041e0

**Net long-term flows ($ billion)**

**Net flows in money market funds ($ billion)**

**Reinvested distributions ($ billion)**

**Market gains and losses ($ billion)**

**Foreign currency translation ($ billion)**

**Net flows in non-management fee earning AUM ($ billion)**

**Net revenue yield excluding performance fees (basis points)**

**QQQ ($ billion)**

1881914374ec166f030b69fe66598baf07322a1d7cf329e19acd3abc2df4c8ca

| Metric (USD Million) | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|----------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| Investment Management Fees | N/A | **1,027.9**  **[0000914208-23-000326_ivzpressrelease1q2023.htm:6]**  | **1,033.5**  **[0000914208-23-000416_ivz-20230630.htm:3]**  | N/A | **1,003.3**  **[0000914208-24-000022_ivzpressrelease4q2023.htm:6]**  | **1,048.7**  **[0000914208-24-000276_ivz-20240331.htm:3]**  | **1,065.8**  **[0000914208-24-000335_ivz-20240630.htm:3]**  | N/A |
| Service and Distribution Fees | N/A | **334.2**  **[0000914208-23-000326_ivzpressrelease1q2023.htm:6]**  | **342.3**  **[0000914208-23-000416_ivz-20230630.htm:3]**  | N/A | **344.6**  **[0000914208-24-000022_ivzpressrelease4q2023.htm:6]**  | **377.0**  **[0000914208-24-000276_ivz-20240331.htm:3]**  | **361.6**  **[0000914208-24-000335_ivz-20240630.htm:3]**  | N/A |
| Performance Fees | N/A | **5.6**  **[0000914208-23-000326_ivzpressrelease1q2023.htm:6]**  | **19.6**  **[0000914208-23-000416_ivz-20230630.htm:3]**  | N/A | **19.5**  **[0000914208-24-000022_ivzpressrelease4q2023.htm:6]**  | **0.8**  **[0000914208-24-000276_ivz-20240331.htm:3]**  | **8.7**  **[0000914208-24-000335_ivz-20240630.htm:3]**  | N/A |
| Other Revenues | N/A | **50.5**  **[0000914208-23-000326_ivzpressrelease1q2023.htm:6]**  | **47.4**  **[0000914208-23-000416_ivz-20230630.htm:3]**  | N/A | **46.0**  **[0000914208-24-000022_ivzpressrelease4q2023.htm:6]**  | **48.8**  **[0000914208-24-000276_ivz-20240331.htm:3]**  | **47.2**  **[0000914208-24-000335_ivz-20240630.htm:3]**  | N/A |
| Total Operating Revenues | N/A | **1,418.2**  **[0000914208-23-000326_ivzpressrelease1q2023.htm:6]**  | **1,442.8**  **[0000914208-23-000416_ivz-20230630.htm:3]**  | **1,442.0**  **[0000914208-23-000479_ivz-20230930.htm:10]**  | **1,413.4**  **[0000914208-24-000022_ivzpressrelease4q2023.htm:6]**  | **1,475.3**  **[0000914208-24-000276_ivz-20240331.htm:3]**  | **1,483.3**  **[0000914208-24-000335_ivz-20240630.htm:3]**  | **1,515.4**  **[0000914208-24-000427_ivz-20240930.htm:3]**  |

063359a909f2d6c6cd7df340f3ca33e9ad02561cd60254169c65f9b0dda05493

Adjustments for Non-Cash Items [USD, Millions]

Stock-Based Compensation [USD, Millions]

Changes in Working Capital [USD, Millions]

Capital Expenditures (CapEx) [USD, Millions]

Proceeds from / Repayments of Debt [USD, Millions]

Share Repurchases [USD, Millions]

Dividend Payments [USD, Millions]

Net Change in Cash [USD, Millions]

455c66fcc0da9e62dd37080f2ebeb88339ad1ff8e901ea625f753abd0c20174d

bca017ed06a221fae994409961ce89da97f5b675158517c0f66996d70ce8029d

1. Given the **volatility in China**, particularly in fixed income where you reported **outflows after a strong second quarter**, how confident are you in the sustainability of your business in that region, and what specific actions are you taking to mitigate the risks associated with such volatility?  **[IVZ_3403192_3]** 

2. Despite some moderation, your **fundamental equity flows** continue to experience **net outflows of approximately $1 billion to $2 billion per quarter**, down from **quarterly peak outflows of $6 billion in 2022**. What concrete strategies are you implementing to reverse this trend and gain market share in the fundamental equity categories?  **[IVZ_3403192_3]** 

3. You achieved **positive long-term organic flow growth** in each of your three regions, but the **Americas showed a lower growth rate of 4% compared to Asia Pacific at 9% and EMEA at 5%**. What challenges are you facing in the Americas, and how do you plan to enhance growth in this region?  **[IVZ_3403192_1]** 

4. While you've focused on improving fundamental equity performance, only **28% of your AUM is in the top quartile over 1 and 5 years, and 24% over 3 years**, with **61% in the top half over 5 years**. What specific steps are you taking to improve this performance, and when do you expect to see material improvements?  **[IVZ_3403192_3]** 

5. You've strengthened your balance sheet, meeting your **zero net debt goal** and executing **$25 million of share buybacks** during the quarter. How do you balance these capital return initiatives with the need to invest in growth areas, and could this impact your ability to improve operating leverage?  **[IVZ_3403192_1]** 

5e3c8aabb39b32ab26c13369e223af4f97eb0d5744a5bb7302a4035309caf526

Investment Management Fees

Service and Distribution Fees

Performance Fees

Other Revenues

Total Operating Revenues

be5e74f0602df0c30f20880266bf27f00e74033c032cfa75d696f82046801ce4

Americas

- UK

APAC

EMEA

Continental Europe/Ireland

Canada

Total Revenue

c0277bd971187889d2138452d202eef8aaab9fca01def9bd373c09292370556c

### Q3 2024 Earnings Call
- **Issued Period**: Q3 2024
- **Guided Period**: Q4 2024
- **Guidance**:
  1. **Performance Fees**: Expected to decrease due to seasonality.
  2. **Operating Expenses**: Total adjusted operating expenses were $756 million in Q3, with Alpha-related one-time implementation costs expected to be closer to $15 million in Q4.
  3. **Effective Tax Rate**: Estimated to be near the lower end of 23% to 25%.
  4. **Share Buybacks**: Expected to continue with around $25 million in Q4.
  5. **Total Payout Ratio**: Anticipated to move closer to 60%.
  6. **Alpha Platform Implementation**: Transitioning AUM onto the platform starting in Q4 2024 through 2025, possibly into early 2026.
  7. **Expenses**: Expected to be around $3 billion for 2024, with some seasonal increases in Q4  **[IVZ_3403192_6]** **[IVZ_3403192_16]** **[IVZ_3403192_23]** .

### Q2 2024 Earnings Call
- **Issued Period**: Q2 2024
- **Guided Period**: Q3 2024
- **Guidance**:
  1. **General and Administrative (G&A) Expenses**: Expected to be in the $3 billion range for the year, with compensation to revenue trending above 42%, likely closer to 43%.
  2. **Alpha Platform Implementation Costs**: Approximately $10 million per quarter for the remainder of 2024.
  3. **Effective Tax Rate**: Estimated between 23% and 25%.
  4. **Stock Buyback Program**: Planned to buy back around $25 million per quarter.
  5. **Total Payout Ratio**: Expected to move into the 50% to 60% range.
  6. **Alpha Platform Implementation Timeline**: Expected to continue through 2025 and into 2026  **[IVZ_3393927_20]** **[IVZ_3393927_7]** **[IVZ_3393927_16]** .

### Q1 2024 Earnings Call
- **Issued Period**: Q1 2024
- **Guided Period**: Q2 2024
- **Guidance**:
  1. **Alpha Platform Implementation Costs**: Expected to be approximately $10 million per quarter.
  2. **Non-GAAP Effective Tax Rate**: Estimated between 23% and 25%.
  3. **Compensation to Net Revenue Ratio**: Expected to be slightly above the higher end of the 38% to 42% range.
  4. **Net Debt**: Expected to approach zero in the second half of the year.
  5. **Stock Buyback Program**: Aiming to begin a more regular program.
  6. **Dividend**: Increased to $0.205 per share.
  7. **Third-Party Contra Revenue**: Expected to be around 43%  **[IVZ_3380246_6]** **[IVZ_3380246_7]** .

### Q4 2023 Earnings Call
- **Issued Period**: Q4 2023
- **Guided Period**: Q1 2024 and FY 2024
- **Guidance**:
  1. **Compensation to Net Revenue Ratio**: Expected to be at or slightly above the higher end of the 38% to 42% range, exceeding 42% in the first half of 2024.
  2. **Non-GAAP Effective Tax Rate**: Estimated between 23% and 25%.
  3. **Alpha Platform Implementation Costs**: Approximately $10 million per quarter.
  4. **Expense Base for 2024**: Expected to be relatively flat compared to 2023.
  5. **Operating Margin Goal**: Long-term goal to reach mid-30% range  **[IVZ_3370581_6]** **[IVZ_3370581_10]** **[IVZ_3370581_21]** **[IVZ_3370581_16]** .

75aff0c972e2693d80f8f93d54a34dfbba3b4a648717f7ea409a88cd1930c006

| Name                  | Position                                                | Start Date         | Short Bio                                                                                                                                                                                                                                                                                                                                 |
|-----------------------|---------------------------------------------------------|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Andrew R. Schlossberg | President and Chief Executive Officer                   | June 30, 2023      | Andrew R. Schlossberg has served as the President and CEO of Invesco Ltd. since June 30, 2023. He joined Invesco in 2001 and has held multiple leadership roles, including Senior Managing Director and Head of the Americas from 2019 to June 2023, and Senior Managing Director and Head of EMEA from 2016 to 2019  **[0001193125-24-080494_d798548ddef14a.htm:23]** **[0000914208-24-000219_ivz-20231231.htm:147]** **[0001193125-23-088075_d454008ddef14a.htm:59]** .               |
| Stephanie C. Butcher | Senior Managing Director and Co-Head of Investments      | February 2023      | Stephanie C. Butcher has served as Senior Managing Director and Co-Head of Investments at Invesco since February 2023. Prior to this role, she was the Chief Investment Officer in Invesco's EMEA business, overseeing the Henley Investment Centre from 2020 to February 2023  **[0001193125-24-080494_d798548ddef14a.htm:57]** **[0001193125-23-088075_d454008ddef14a.htm:57]** **[0001193125-23-071333_d454008dpre14a.htm:57]** .                                                  |
| L. Allison Dukes      | Senior Managing Director and Chief Financial Officer    | 2020               | L. Allison Dukes has served as Senior Managing Director and CFO of Invesco Ltd. since 2020. She leads all global corporate finance functions, including strategic and financial planning, investor relations, corporate development, accounting, corporate tax, treasury, and procurement  **[0001193125-24-080494_d798548ddef14a.htm:57]** **[0001193125-23-088075_d454008ddef14a.htm:57]** **[0001193125-23-071333_d454008dpre14a.htm:57]** .                                        |
| Jeffrey H. Kupor      | Senior Managing Director and General Counsel            | January 1, 2023    | Jeffrey H. Kupor has served as Senior Managing Director and General Counsel at Invesco Ltd. since January 1, 2023. He joined Invesco in 2002 and has held various legal roles, including Head of Legal, Americas from 2018 to 2022  **[0001193125-24-080494_d798548ddef14a.htm:57]** **[0001193125-23-088075_d454008ddef14a.htm:58]** .                                                                                                 |
| Andrew T.S. Lo        | Senior Managing Director and Head of Asia Pacific       | 2001               | Andrew T.S. Lo has served as the Senior Managing Director and Head of Asia Pacific at Invesco since 2001. He is responsible for Invesco's businesses in the Asia Pacific region, which includes Greater China, Japan, Australia, and India  **[0001193125-24-080494_d798548ddef14a.htm:59]** **[0001193125-23-088075_d454008ddef14a.htm:58]** .                                                                                       |
| Douglas J. Sharp      | Senior Managing Director and Head of the Americas & EMEA| June 2023          | Douglas J. Sharp has served as Senior Managing Director and Head of the Americas and EMEA since June 2023. He joined Invesco in 2008 and has held multiple leadership roles across the company, including his previous role as the Head of EMEA Retail  **[0001193125-24-080494_d798548ddef14a.htm:59]** **[0001193125-23-088075_d454008ddef14a.htm:59]** .                                                                           |
| Alan L. Smith         | Senior Managing Director and Chief Human Resources Officer | March 2024 (expected) | Alan L. Smith has served as Senior Managing Director and Chief Human Resources Officer at Invesco since March 2024. Before joining Invesco, he was the Chief Human Resources Officer for Corebridge Financial, a subsidiary of AIG, from 2020 to February 2024  **[0001193125-24-080494_d798548ddef14a.htm:59]** .                                                                       |
| Tony L. Wong          | Senior Managing Director and Co-Head of Investments     | February 2023      | Tony L. Wong has served as Senior Managing Director and Co-Head of Investments at Invesco since February 2023. Prior to this role, he was the Head of Fixed Income Investments from 2019 to February 2023  **[0001193125-24-080494_d798548ddef14a.htm:59]** **[0001193125-23-088075_d454008ddef14a.htm:59]** .                                                                                                                        |

196b4fca3d396dfc80f8b1c30a81e3966c469be42acdb600d9b67b8836c77ed4

| Program Details          | Program 1            |
|--------------------------|----------------------|
| Approval Date            | **July 22, 2016**  **[0000914208-24-000427_ivz-20240930.htm:43]** |
| End Date/Duration        | N/A                  |
| Total additional amount  | N/A                  |
| Remaining authorization  | **$357.2 million**  **[0000914208-24-000427_ivz-20240930.htm:43]** **[0000914208-24-000427_ivz-20240930.htm:48]**  |
| Details                  | Part of capital management strategy to maintain a strong balance sheet and return capital to shareholders.  **[0000914208-24-000219_ivz-20231231.htm:71]** **[IVZ_3383856_18]** **[IVZ_3255378_17]** **[0000914208-24-000219_ivz-20231231.htm:74]**  |

19a4c49e8bdc16f61fe722662940e713f6f379855fc3720151ae16648ad997d0

**Quarterly guidance for Q4 2024:**
- **Performance Fees**: Expected to decrease due to seasonality  **[IVZ_3403192_6]** **[IVZ_3403192_16]** **[IVZ_3403192_23]**  (no prior guidance)  
- **Operating Expenses**: $756 million in Q3 with Alpha-related one-time implementation costs expected to be closer to $15 million in Q4  **[IVZ_3403192_6]** **[IVZ_3403192_16]** **[IVZ_3403192_23]**   
   - **Alpha Platform Implementation Costs**: $15 million in Q4  **[IVZ_3403192_6]** **[IVZ_3403192_16]** **[IVZ_3403192_23]**  (raised from $10 million  **[IVZ_3393927_20]** **[IVZ_3393927_7]** **[IVZ_3393927_16]** )  
- **Effective Tax Rate**: Near the lower end of 23% to 25%  **[IVZ_3403192_6]** **[IVZ_3403192_16]** **[IVZ_3403192_23]**  (no change from 23%–25%  **[IVZ_3393927_20]** **[IVZ_3393927_7]** **[IVZ_3393927_16]** )  
- **Share Buybacks**: Around $25 million in Q4  **[IVZ_3403192_6]** **[IVZ_3403192_16]** **[IVZ_3403192_23]**  (no change from $25 million  **[IVZ_3393927_20]** **[IVZ_3393927_7]** **[IVZ_3393927_16]** )  
- **Total Payout Ratio**: Anticipated to move closer to 60%  **[IVZ_3403192_6]** **[IVZ_3403192_16]** **[IVZ_3403192_23]**  (raised from 50%–60%  **[IVZ_3393927_20]** **[IVZ_3393927_7]** **[IVZ_3393927_16]** )  
- **Alpha Platform Implementation**: Transitioning AUM onto the platform starting in Q4 2024 through 2025, possibly into early 2026  **[IVZ_3403192_6]** **[IVZ_3403192_16]** **[IVZ_3403192_23]**  (no change from prior guidance extending through 2025 into 2026  **[IVZ_3393927_20]** **[IVZ_3393927_7]** **[IVZ_3393927_16]** )

**Annual guidance for 2024:**
- **Expenses**: Expected to be around $3 billion  **[IVZ_3403192_6]** **[IVZ_3403192_16]** **[IVZ_3403192_23]**  (no change from $3 billion  **[IVZ_3393927_20]** **[IVZ_3393927_7]** **[IVZ_3393927_16]** )

fa25eb8c8711ff9db408ceb2b4ceb851c0fc4d3b52a17bc83a9386030c2766df

1. **China Stimulus Impact on IGW**  
   **Q:** How will China's stimulus affect IGW's performance?  
   **A:** The management noted that while it's early days in China, they've observed positive effects from the stimulus on investor sentiment.  **[IVZ_3403192_8]**  There's a mix shift occurring from fixed income to equities and balanced portfolios.  **[IVZ_3403192_8]**  Since IGW's business is about **30% equities, 30% fixed income, 20% balanced, and 20% money market**, they expect demand to improve but caution against speculating too much at this stage.  **[IVZ_3403192_8]** 

2. **MassMutual Preferred Shares**  
   **Q:** Any plans to repurchase MassMutual's preferred shares?  
   **A:** Management is in ongoing conversations with MassMutual about the preferred shares, which are a **non-call instrument** owned entirely by MassMutual.  **[IVZ_3403192_9]**  Repurchasing them isn't straightforward due to their duration and associated liabilities.  **[IVZ_3403192_9]**  In the meantime, they've focused on deleveraging the balance sheet and returning capital to common shareholders.  **[IVZ_3403192_9]** 

3. **Fixed Income Flows and Opportunities**  
   **Q:** What's driving fixed income flows, and where are the opportunities?  
   **A:** The company saw strong institutional inflows in fixed income, accounting for **70% of the volume this quarter**.  **[IVZ_3403192_11]**  There's increased money in motion as investors seek clarity on interest rates and reposition portfolios.  **[IVZ_3403192_11]**  Demand is growing globally, with particular strength in U.S. municipals and separately managed accounts.  **[IVZ_3403192_11]** 

4. **Operating Leverage and Fee Rates**  
   **Q:** Can you achieve positive operating leverage without changes in growth drivers?  
   **A:** Management believes they can drive positive operating leverage by focusing on growth in key investment capabilities and maintaining expense discipline.  **[IVZ_3403192_13]**  Despite shifts towards lower-fee products like ETFs, they're committed to improving operating margins and aim to reach a **mid-30s operating margin**.  **[IVZ_3403192_13]** 

5. **M&A Strategy and Partnerships**  
   **Q:** How do you view partnerships to expand offerings?  
   **A:** Partnerships are integral to their growth strategy.  **[IVZ_3403192_14]**  They've historically engaged in partnerships geographically and in distribution and investment capabilities, such as their joint venture in India.  **[IVZ_3403192_14]**  They continue to explore opportunities to leverage their brand and distribution through partnerships.  **[IVZ_3403192_14]** 

6. **Private Real Estate Flows and Distribution**  
   **Q:** What's driving private real estate flows, and how are distribution capabilities?  
   **A:** Growth is broad-based, not just from new platform additions.  **[IVZ_3403192_18]**  They've seen strong demand for their real estate debt strategy and separately managed accounts.  **[IVZ_3403192_18]**  Redemption pressures are moderating.  **[IVZ_3403192_18]**  They have specialist teams alongside generalists to distribute private market products and have made necessary investments in distribution.  **[IVZ_3403192_21]** 

7. **Expense Outlook and Alpha Integration**  
   **Q:** When will Alpha integration expenses peak and profits improve?  
   **A:** Implementation costs increased this quarter, and they expect expenses to peak next year as they transition assets onto the Alpha platform.  **[IVZ_3403192_16]**  Cost benefits are anticipated to start in 2026 as they transition off old systems.  **[IVZ_3403192_16]** 

8. **India Joint Venture**  
   **Q:** Can you elaborate on the India JV and lessons learned?  
   **A:** They're working through regulatory approvals, expecting completion in the first quarter.  **[IVZ_3403192_22]**  They believe in the Indian market and have chosen a good partner with captive distribution.  **[IVZ_3403192_22]**  Lessons learned include the importance of strong partnerships for expansion.  **[IVZ_3403192_22]** 

9. **Competitiveness in Fixed Income**  
   **Q:** Are there opportunities for market share gains in fixed income?  
   **A:** Management notes that increased money in motion due to interest rate clarity is leading to more fixed income flows globally.  **[IVZ_3403192_20]**  While the market is competitive, they are seeing strong demand across regions and believe assets are coming from both new allocations and competitors.  **[IVZ_3403192_20]** 

10. **Money Market Fund Outflows**  
    **Q:** What's causing outflows in global liquidity products?  
    **A:** Outflows are primarily due to institutional clients reallocating assets as interest rate dynamics change.  **[IVZ_3403192_25]**  Their liquidity business is largely institutional, comprising about **85%** of assets.  **[IVZ_3403192_25]**  They continue to expect their liquidity business to be profitable and scalable.  **[IVZ_3403192_25]** 

11. **MassMutual Distribution Partnership**  
    **Q:** How are you growing within MassMutual's channel?  
    **A:** They're exploring opportunities like model portfolios in MassMutual's broker-dealer network and sub-advised insurance products across equities and fixed income.  **[IVZ_3403192_15]**  They see potential in leveraging the partnership given MassMutual's role as a significant distribution partner and common shareholder.  **[IVZ_3403192_15]** 

12. **Service and Distribution Fees**  
    **Q:** Why did service and distribution fees decline despite higher AUM?  
    **A:** The decline is due to a product mix shift towards ETFs, which generate less service and distribution fee revenue than mutual funds.  **[IVZ_3403192_19]**  This shift affects the ratio of service and distribution fees to management fees, trending it higher due to increased third-party expenses like licensing fees.  **[IVZ_3403192_19]** 

13. **Retirement Eligibility Accounting Change**  
    **Q:** How will the accounting change for retirement eligibility benefit results?  
    **A:** The change provides clarity for employees and reduces volatility in compensation expenses.  **[IVZ_3403192_10]**  By accelerating expense recognition for retirement-eligible employees, it allows better planning and aligns with common practices.  **[IVZ_3403192_10]** 

14. **BulletShares ETF Flows**  
    **Q:** What's driving strong BulletShares flows, and will it continue?  
    **A:** BulletShares are seeing strong demand due to investor interest in fixed income strategies.  **[IVZ_3403192_17]**  They expect this trend to continue, especially as maturities in December get repopulated in the first quarter.  **[IVZ_3403192_17]** 

15. **Liquidity Impact on Bond Allocations**  
    **Q:** Where are strong bond flows coming from if not from money funds?  
    **A:** Investors are moving further out in duration, with flows coming from the sidelines and competitors rather than their own money funds.  **[IVZ_3403192_26]**  The money fund dynamics are different, and the bond flows are not directly linked to outflows from their money funds.  **[IVZ_3403192_26]** 

34f7d267ba4f3733125fd235b859b67695e30fdd98e7b257fa575494308bcc62

- **Invesco expects operating margin expansion in 2025** driven by disciplined expense management and a focus on organic revenue growth across all investment capabilities. They aim for **1% expense growth year-over-year**, inclusive of costs associated with the Alpha platform implementation.  **[IVZ_3413379_16]**
- **Strong growth opportunities in Private Markets and Alternatives**, particularly through wealth management channels. Their real estate debt strategy, INCREF, **doubled in size over the past few quarters to around $2.5 billion**, showcasing increasing demand in this space. They also plan to build out their Alternative Credit offerings.  **[IVZ_3413379_15]**
- **ETF adoption in Europe is accelerating**, and Invesco is optimistic about **EMEA ETF growth**, with over **$125 billion in ETF assets** in the region. Despite slightly lower fee rates in Europe compared to the U.S., this trend is viewed as a **net positive** for organic revenue growth due to strong demand.  **[IVZ_3413379_20]**

80416615645e4266320018b7a34d56932bcf91233fb0bfd402659e8aa18ff6ed

- **Invesco's compensation-to-revenue ratio remains elevated at approximately 43%, with limited expectation of improvement in 2025, which may impact operating margins negatively.**  **[IVZ_3413379_23]**
- **The firm anticipates increased operating expenses in 2025 due to higher implementation costs related to the Alpha platform and higher compensation expenses, potentially pressuring profitability.**  **[IVZ_3413379_12]**
- **Ongoing net revenue yield declines are driven by a shift towards lower-fee products, such as ETFs, especially in Europe and China, which may negatively affect overall revenues.**  **[IVZ_3413379_20]** ,  **[IVZ_3413379_18]**

2d358afaf93cb9ff131ee6e06dc518ee3b1ab42faf393dd8820b9197c105f062

1. **Alpha Expenses & Margin Outlook**  
   **Q:** How will Alpha expenses affect margins in 2025?  
   **A:** Despite **$20–25 million higher** Alpha costs in 2025 compared to 2024  **[IVZ_3413379_7]** **[IVZ_3413379_9]** , management is bullish on margins, expecting only a **1% expense increase** over 2024.  **[IVZ_3413379_7]** **[IVZ_3413379_9]** **[IVZ_3413379_12]**  Alpha implementation costs of **$10–15 million per quarter** will continue through 2025.  **[IVZ_3413379_7]** **[IVZ_3413379_9]** **[IVZ_3413379_12]**  Benefits from Alpha will materialize post-transition in 2026.  **[IVZ_3413379_9]** **[IVZ_3413379_10]** 

2. **Operational Benefits from Alpha**  
   **Q:** What operational benefits are expected from Alpha implementation?  
   **A:** Alpha will simplify operations by transitioning assets to a single platform, enhancing efficiency and investment execution.  **[IVZ_3413379_13]** **[IVZ_3413379_14]**  Early experiences are positive, but significant benefits will emerge as more assets migrate.  **[IVZ_3413379_13]**  Cost savings from decommissioning legacy systems are anticipated after full transition.  **[IVZ_3413379_9]** **[IVZ_3413379_10]** **[IVZ_3413379_14]** 

3. **Fundamental Equities Outflows**  
   **Q:** How is the company addressing outflows in Fundamental Equities?  
   **A:** Management is focusing on delivering high-quality investment performance and defending the business.  **[IVZ_3413379_16]**  Narrowing outflows in Fundamental Equities is seen as the biggest opportunity to expand revenue and improve operating margins in 2025.  **[IVZ_3413379_16]** **[IVZ_3413379_15]** 

4. **Private Markets Growth Strategy**  
   **Q:** What is the strategy to grow the Private Markets business?  
   **A:** The company sees opportunities in organic growth, especially in real estate debt strategies like **INCREF**, which doubled to **$2.5 billion**.  **[IVZ_3413379_14]** **[IVZ_3413379_15]**  They are expanding alternative credit offerings to wealth management channels and exploring partnerships for inorganic growth.  **[IVZ_3413379_14]** **[IVZ_3413379_15]** 

5. **Capital Management & Payout Ratio**  
   **Q:** How is capital being allocated given improved liquidity?  
   **A:** Priorities are investing in organic growth and preserving cash for a potential repayment of a **$500 million** debt maturing next January.  **[IVZ_3413379_8]** **[IVZ_3413379_14]**  The payout ratio remains at **60%**, maintaining flexibility for growth opportunities and debt management.  **[IVZ_3413379_14]** 

6. **China Business Outlook**  
   **Q:** What are expectations for growth in China?  
   **A:** The company experienced **$2.5 billion** in flows this quarter, driven by demand for equity ETFs and fixed income plus strategies.  **[IVZ_3413379_11]**  While demand is increasing, retail investor confidence may need further stimulus to strengthen.  **[IVZ_3413379_11]** 

7. **Expense Guidance Details**  
   **Q:** Can you clarify the expense guidance and impact of Alpha costs?  
   **A:** The **1% expense increase** over 2024 is based on a **$3.30 billion** expense base.  **[IVZ_3413379_12]**  Alpha implementation costs of **$10–15 million per quarter** will continue through 2025 and may extend into 2026 as assets transition.  **[IVZ_3413379_12]** **[IVZ_3413379_14]** 

8. **Institutional Business Pipeline**  
   **Q:** Where is the company seeing success in institutional business?  
   **A:** The pipeline is expanding across all regions and capabilities, with strength in fixed income, alternatives, and select equities.  **[IVZ_3413379_21]**  Fee rates are on the high end, in the mid-20s to mid-30s basis points.  **[IVZ_3413379_21]** 

9. **ETF Fee Rates & Mix Shift**  
   **Q:** What is causing changes in ETF fee rates?  
   **A:** Fee rates are impacted by mix shifts, with strong demand for lower-fee products like **QQQM** and **S&P 500 Equal Weight ETFs** with fees in mid to high single digits.  **[IVZ_3413379_17]** **[IVZ_3413379_18]**  In APAC, fee reductions due to regulatory mandates in 2023 are now fully absorbed.  **[IVZ_3413379_17]** 

10. **Active ETF Strategy**  
    **Q:** How is the company approaching active ETFs?  
    **A:** With about **$10 billion** in active ETFs, the company is exploring multiple paths, including new launches and potential conversions.  **[IVZ_3413379_16]** **[IVZ_3413379_23]**  Cloning mutual fund strategies into ETFs is considered but is not the primary focus.  **[IVZ_3413379_23]** 

d90e15232eee027d58b8e2a7bd7deef62407d9b52f838546ed004d191a71fba2

IVZ projects 2025 margin expansion with only 1% expense growth, aided by stable Alpha costs. Private Markets remain a bright spot—INCREF doubled to $2.5B. EMEA ETFs reached $125B in AUM, though fee rate pressure persists from ongoing product mix shifts.

a911a2351a3f6e803522cf1ddfb243f0f8dbcbe75c50e4d2eaf8af035f8c34ab

00f174eace5e0fe9e96b0a33372a06f47ef95e0744ed9c7ae87c1a18ad0c5b1e

**Quarterly guidance for Q1 2025:**
- **Effective tax rate**: near 25%  **[IVZ_3413379_12]**  (raised from near the lower end of 23%–25%  **[IVZ_3403192_6]** **[IVZ_3403192_16]** **[IVZ_3403192_23]** )

**Annual guidance for FY 2025:**
- **Operating expenses**: expected to increase by ~1% over 2024  **[IVZ_3413379_12]** **[IVZ_3413379_5]**  (no prior guidance)  
- **Alpha platform costs**: implementation costs $10–$15M per quarter, total Alpha costs $20–$25M higher year over year  **[IVZ_3413379_12]** **[IVZ_3413379_5]** **[IVZ_3413379_9]**  (no prior guidance)  
- **Compensation to revenue ratio**: 42%–43%  **[IVZ_3413379_23]**  (no prior guidance)  
- **Total payout ratio**: moving closer to 60%  **[IVZ_3413379_5]**  (no change from prior guidance  **[IVZ_3403192_6]** **[IVZ_3403192_16]** **[IVZ_3403192_23]** )

e0074c403962944235a2d54d6982fb11d2ff2f0e327235a2ac6b1b3a42d2a8b9

| Name                          | Start Date | End Date | Reason for Change |
|-------------------------------|------------|----------|-------------------|
| PricewaterhouseCoopers LLP    | 2013  **[0000914208-24-000219_ivz-20231231.htm:86]**    | Present  | Current auditor   |

1c1ac48379945790b2954e1bedaf096cc953f0f0a352ef17fdae62a42d791c5a

6a9c64685ffd946dc7615caf5a784ef99bc508ff175256603133af88d874ba9e

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

8fd713787cfeb6b0d2ca2ea9cf934f6aad01888ca2bd96d242d944c7977338ff

fa984a5314c39a26f16ae699c4a937c13da43adf2faae8c2332ed4962bb621f7

- **Invesco sees significant growth opportunities in private markets and alternatives**, with **$1.2 billion** in private credit inflows (on a **$42 billion** business) driven by bank loans and CLOs, and is expanding offerings in real estate debt and private credit strategies into wealth channels globally.  **[IVZ_3370581_22]** **[IVZ_3370581_9]**
- **Invesco is focusing on operational efficiency and expense control**, expecting expenses in 2024 to be **flat** compared to 2023 despite inflationary pressures, and anticipates modest improvement in operating margins due to higher markets and increased average AUM.  **[IVZ_3370581_16]** **[IVZ_3370581_23]**
- **Invesco is strengthening its financial position with a target of zero net debt**, aiming for a **40%-60% payout ratio** while maintaining flexibility for strategic bolt-on acquisitions in private markets to enhance growth.  **[IVZ_3370581_19]** **[IVZ_3370581_14]**

4072a937652f45cd995fd6e40396423b4fcb5d0b47d8a416af386f9db3327aca

1. **Fee Rate Stabilization**  
   **Q:** When will fee rate declines stabilize?  
   **A:** Allison noted that the net revenue yield has declined to **26.1 basis points**, approaching their passive yield range of **15 to 20 basis points**.  **[IVZ_3380246_10]**  She believes they are getting closer to a tipping point where the impact of mix shift diminishes, potentially stabilizing fee rates.  **[IVZ_3380246_10]** 

2. **Margin Expansion Outlook**  
   **Q:** How will margins expand over the next 12–18 months?  
   **A:** Allison stated they are focused on managing expenses and creating positive operating leverage.  **[IVZ_3380246_14]**  Despite market and client demand headwinds, she is confident they can achieve margin expansion, potentially starting this quarter.  **[IVZ_3380246_14]** 

3. **Stock Price Performance**  
   **Q:** Why has the stock underperformed, and what's the outlook?  
   **A:** Andrew acknowledged dissatisfaction with the share price.  **[IVZ_3380246_9]**  He attributed underperformance to narrow market demand and lagging client flows, particularly in global and emerging market equities.  **[IVZ_3380246_9]**  They are focusing on expense discipline and growth areas to improve profitability and share price.  **[IVZ_3380246_9]** 

4. **Capital Return and Buybacks**  
   **Q:** When will share buybacks resume?  
   **A:** Allison expects to reach their target of **zero net debt** by the middle to back half of this year.  **[IVZ_3380246_17]**  They hope to resume regular share buybacks thereafter, aiming for a total payout ratio in the **40% to 60% range**.  **[IVZ_3380246_17]** 

5. **Private Markets Growth**  
   **Q:** What's the outlook for private markets growth?  
   **A:** Allison detailed major components: direct real estate at **$69 billion**, listed real estate at **$15 billion**, bank loans at **$39 billion**, and distressed and direct lending over **$2 billion**.  **[IVZ_3380246_13]**  Andrew highlighted strong demand in bank loans and opportunities in bringing institutional real estate strategies to the wealth space.  **[IVZ_3380246_13]** 

6. **Expense Management**  
   **Q:** Are expenses being realigned for potential cuts?  
   **A:** Allison clarified that shifting expenses into G&A was to better classify them, not to signal cuts.  **[IVZ_3380246_11]**  They continue to streamline operations and aggressively manage expenses.  **[IVZ_3380246_14]** 

7. **Success in SMAs and Active ETFs**  
   **Q:** How are SMAs and active ETFs performing?  
   **A:** Andrew reported their SMA platform has grown to **$23 billion**, with strong success in fixed income.  **[IVZ_3380246_15]**  In active ETFs, they have about **$25 billion** in AUM with active teams, combining both classical active funds and passive strategies supported by active teams.  **[IVZ_3380246_15]** 

8. **India Platform Streamlining**  
   **Q:** Are you streamlining your global platforms like India?  
   **A:** Andrew explained they formed a joint venture in India, selling **60%** of their Indian fund business to Hinduja Group.  **[IVZ_3380246_16]**  This partnership allows them to focus resources on growth areas and consider similar opportunities globally.  **[IVZ_3380246_16]** 

9. **Fee Rate Disclosures for Modeling**  
   **Q:** Will you provide more granular fee rate disclosures?  
   **A:** Allison stated they have updated disclosures with fee ranges for investment capabilities.  **[IVZ_3380246_12]**  While they will adjust ranges as needed, they believe the current ranges are accurate for modeling purposes.  **[IVZ_3380246_12]** 

10. **Asia Outflows**  
    **Q:** What drove net outflows in Asia-Pacific?  
    **A:** Andrew noted that net outflows were driven by redemptions in a Japanese equity capability.  **[IVZ_3380246_20]**  However, sourced inflows were strong, with **$3.3 billion** in inflows and a **6.6%** organic growth rate, boosted by successes in Japan, India, and China.  **[IVZ_3380246_20]** 

11. **Definition of Private Markets Outflows**  
    **Q:** Do private markets outflows include realizations?  
    **A:** Allison confirmed that outflows include both redemptions and realizations.  **[IVZ_3380246_21]**  Inflows were driven by over **$1 billion** in bank loans, with some outflows in listed real estate.  **[IVZ_3380246_21]** 

d792f7794404f60cd8fb30b0b7a7310c4ae7b3fbc509e88676746952b73b6c5a

- **Invesco's stock price has underperformed**, with management acknowledging they are "not pleased with where the share price is" due to headwinds in key markets like China and emerging markets where client demand has not picked up.  **[IVZ_3380246_9]**
- **Exposure to global and developing markets is creating significant headwinds and pressure on earnings**, as the company's "tilt towards global and developing markets...creates a lot of headwind."  **[IVZ_3380246_9]**
- **Client demand remains a significant headwind**, particularly in developing markets, and geopolitical issues may further impact these markets, hindering margin expansion and operating leverage.  **[IVZ_3380246_19]** **[IVZ_3380246_9]**

c43b325c2629381083b2b603d107c69b9df3788bacfbdad2d7bfb01bad1e0e09

- Invesco is experiencing **strong growth in its private real estate and alternative investment strategies**, particularly in **real estate debt strategies** within wealth management channels, which are expected to continue growing  **[IVZ_3403192_18]** ,  **[IVZ_3403192_12]** .
- The company is seeing **positive developments in China and the Asia Pacific region**, including the launch of **new equity ETFs** and the potential benefits from **China's economic stimulus**, which are expected to enhance investor sentiment and demand for Invesco's products in the region  **[IVZ_3403192_8]** ,  **[IVZ_3403192_3]** .
- Invesco is **effectively driving positive operating leverage** through expense management and growth across various investment capabilities, leading to **improved profitability even without relying on market beta**, demonstrating strong operational efficiency  **[IVZ_3403192_13]** ,  **[IVZ_3403192_23]** .

e994fabd5841273a0069eac393179df2483119381b1ddd26c709e789f235c0df

- **Increasing expenses due to the implementation of the State Street Alpha platform are impacting profitability, with integration costs rising $3 million sequentially and expected to peak next year.**  **[IVZ_3403192_16]**
- **Uncertainty and volatility in the Chinese market pose risks to Invesco's business, as the recent stimulus has not materially impacted results, and the company acknowledges the market remains challenging.**  **[IVZ_3403192_8]**
- **Reliance on lower-fee products like passive investments, fixed income, and SMAs may challenge Invesco's ability to drive positive operating leverage without changes to underlying growth drivers.**  **[IVZ_3403192_13]**

01d2491661c01c0edecc9d0da04e2e447de55c4c679ffd9b6617a492d57a9133

- **Invesco's ETF franchise is margin accretive and starting to see the benefits of scale**, with expectations for operating leverage and improving incremental margins over time.  **[IVZ_3380246_19]**
- **The separately managed account (SMA) platform has grown significantly to about $23 billion**, especially in fixed income, representing early-stage growth with better scalability due to modern technology and operations.  **[IVZ_3380246_15]**
- **Invesco is actively managing expenses and expects to create positive operating leverage**, expressing optimism about strong organic growth trends and well-managed expenses leading to improved profitability.  **[IVZ_3380246_14]** **[IVZ_3380246_10]**

6b7bdc9e89b4e07e1eb4bf528a5ccaa1ac9829231604ee33aa62ccedbc7f28a8

1. **China Flows and Political Risks**  
   **Q:** Given political tensions, is the China JV safe in a trade war?  
   **A:** Management explained that their China JV is a **domestic-to-domestic business**.  **[IVZ_3393927_18]**  All assets are managed for individual investors in China and managed within China, reducing exposure to international disputes.  **[IVZ_3393927_18]**  The partnership is **very strong and resilient**.  **[IVZ_3393927_18]**  They highlighted that the JV's performance relies on the Chinese domestic economy; thus, a trade war affecting the economy could pressure AUM through flows and market performance.  **[IVZ_3393927_18]** 

2. **ETF Business Growth and Fee Rates**  
   **Q:** How will you broaden ETF growth and improve fee rates?  
   **A:** Management sees growth opportunities in **active ETFs**, with over **$10 billion** in that space and **$30 billion** in assets affiliated with their investment teams.  **[IVZ_3393927_19]**  They plan to expand beyond the U.S., with growth in Europe now over **$100 billion** in AUM, and increasing demand in Asia, particularly in China and Japan.  **[IVZ_3393927_19]**  They also focus on fixed income and alternative strategies like commodities and bank loans.  **[IVZ_3393927_19]**  The ETF business continues to **scale well**, delivering **accretive profitability** despite lower fee rates.  **[IVZ_3393927_19]** 

3. **Fee Rate Trajectory and Mix Shift**  
   **Q:** What is the outlook for fee rates given mix shifts?  
   **A:** The exit rate for Q2 was **25.2 basis points**, slightly lower than the quarterly average.  **[IVZ_3393927_17]**  Fee rates fluctuate with market movements and the mix of flows.  **[IVZ_3393927_17]**  Management focuses on driving **organic revenue**, with an **organic flow rate of 6%** being a testament to client demand alignment.  **[IVZ_3393927_17]**  Recent market broadening could be a **net positive** for fee rates.  **[IVZ_3393927_17]** 

4. **Capital Return Strategy**  
   **Q:** Is capital return now the priority over M&A?  
   **A:** Management stated they aim to be opportunistic in both **returning capital to shareholders** and pursuing **M&A opportunities**.  **[IVZ_3393927_13]**  With a healthier balance sheet, they can focus on returning capital while remaining open to filling capability gaps through acquisitions.  **[IVZ_3393927_13]**  They emphasize improving earnings and reinvesting to drive **organic growth**.  **[IVZ_3393927_13]** 

5. **Institutional Flows and Pipeline**  
   **Q:** Can you size the institutional pipeline and key areas?  
   **A:** The institutional pipeline remains consistent at around **$14-15 billion**.  **[IVZ_3393927_23]**  Pipeline accounts for about **30%** of flows, but many flows come outside of it.  **[IVZ_3393927_23]**  Fee rates in this segment are on the higher side, ranging from **25 to 35 basis points**.  **[IVZ_3393927_23]**  Strength is seen across regions, particularly in **public and private credit**, with Asia and Europe picking up pace.  **[IVZ_3393927_23]** 

6. **Fundamental Equities Performance and Flows**  
   **Q:** How are you leveraging improved performance in fundamental equities?  
   **A:** Improved investment performance is starting to occur in **domestic equity categories** in the U.S. and other developed markets.  **[IVZ_3393927_25]**  The sales team is working closely with product design and investment teams to enhance client engagement and grow gross sales.  **[IVZ_3393927_25]**  While recognizing industry challenges in active equities, management is focused on **outperforming** and narrowing outflows, aiming to return to a **more stable position**.  **[IVZ_3393927_25]** 

7. **G&A Expenses and Cost Guidance**  
   **Q:** What are your expectations for G&A expenses going forward?  
   **A:** Overall expenses are expected to be around **$3 billion** for the year.  **[IVZ_3393927_20]**  Compensation to revenue is trending above **42%**, anticipated to be closer to **43%** for the year.  **[IVZ_3393927_20]**  Implementation costs for State Street Alpha are around **$10 million** per quarter.  **[IVZ_3393927_20]**  Management notes expenses may be **lumpy** quarter-to-quarter but remain focused on cost management.  **[IVZ_3393927_20]** 

8. **State Street Alpha Implementation Expenses**  
   **Q:** When will Alpha integration expenses decrease?  
   **A:** Implementation will continue through **2025 and into 2026**.  **[IVZ_3393927_16]**  Transitioning AUM onto the Alpha platform begins in Q4 of this year and runs through 2025.  **[IVZ_3393927_16]**  Decommissioning and parallel testing will occur through 2026.  **[IVZ_3393927_16]**  Therefore, integration expenses are expected to remain until after this period.  **[IVZ_3393927_16]** 

9. **MassMutual Relationship**  
   **Q:** How is the MassMutual partnership developing?  
   **A:** The relationship is strong, focusing on growing **private market capabilities**.  **[IVZ_3393927_22]**  MassMutual has **3-4x** the capital invested in Invesco's strategies compared to Invesco's own balance sheet.  **[IVZ_3393927_22]**  This partnership aids in **seeding and co-investing**, particularly in real assets.  **[IVZ_3393927_22]**  Invesco is a leading provider on MassMutual's platform, especially in **model portfolios and ETFs**, where there's growing demand.  **[IVZ_3393927_22]** 

10. **Fixed Income Demand and Flows**  
    **Q:** Can you expand on the green shoots in fixed income?  
    **A:** Fixed income growth is driven by **RFP volume**, **flow volume**, and demand for **longer-duration assets** as clients shift from short-term fixed income.  **[IVZ_3393927_9]**  This is occurring in both **retail and institutional** channels.  **[IVZ_3393927_9]**  In Asia, particularly China, there's strong demand in **fixed income** and **balanced (fixed income plus)** products.  **[IVZ_3393927_9]** 

11. **Retail Democratization and Alternative Strategies**  
    **Q:** What initiatives are underway beyond INREIT?  
    **A:** Invesco launched a **Real Estate Credit Fund** about a year ago, now on two major wealth platforms and several RIA platforms.  **[IVZ_3393927_12]**  Focus is on **real estate equity and debt funds**, with strong client demand globally.  **[IVZ_3393927_12]**  They also offer **alternative credit strategies**.  **[IVZ_3393927_12]** 

12. **Profitability Focus and Cost Control**  
    **Q:** Is there more behind your focus on profitable organic growth?  
    **A:** Management is focusing on scaling **ETFs and SMA vehicles** by utilizing technology and controlling expenses as they grow.  **[IVZ_3393927_21]**  In **fixed income and multi-asset**, they've consolidated investment teams to improve scalability.  **[IVZ_3393927_21]**  They believe they have a complete product range to expand profitability by layering on assets and revenues.  **[IVZ_3393927_21]** 

13. **Japan Business and Outlook**  
    **Q:** Elaborate on your footprint and outlook in Japan.  
    **A:** Invesco has been in Japan for **30 years**, managing around **$60 billion** in assets.  **[IVZ_3393927_24]**  Growth has accelerated recently, especially in **retail** with a global equity income strategy.  **[IVZ_3393927_24]**  They are optimistic about market reforms, inflation trends, and increased investor interest in equities.  **[IVZ_3393927_24]**  ETFs and private markets are areas of **increased demand**.  **[IVZ_3393927_24]** 

14. **Distribution and Servicing Fees**  
    **Q:** What's driving the trend in distribution fees?  
    **A:** There's some impact from **mix shift** away from products with distribution revenue components.  **[IVZ_3393927_10]**  Last quarter had an anomaly due to **proxy costs**, which should be disregarded.  **[IVZ_3393927_10]**  The relationship between service and distribution fees and third-party contra revenue remains **consistent at 13-14%** of management fees.  **[IVZ_3393927_10]** 

15. **Organic Revenue Growth vs Asset Growth**  
    **Q:** How did organic revenue growth trend relative to 6% AUM growth?  
    **A:** Management pointed to narrowed net revenue yield ranges for more precision.  **[IVZ_3393927_14]**  Organic revenue growth is trending **better**, almost **neutral**, despite challenges in fundamental equities and ETF fee pressures.  **[IVZ_3393927_15]**  New disclosures help track organic revenue growth more closely.  **[IVZ_3393927_15]** 

16. **G&A Variability and Professional Fees**  
    **Q:** Are lower G&A expenses sustainable as a tailwind?  
    **A:** Lower professional fees in G&A are not necessarily a **tailwind**, as these expenses vary quarter-to-quarter due to factors like legal, consulting, and project implementation costs.  **[IVZ_3393927_11]**  Variability should be expected in this line item quarter-to-quarter.  **[IVZ_3393927_11]** 

17. **Impact of Market Broadening**  
    **Q:** How does recent market broadening affect your outlook?  
    **A:** Management noted that recent market broadening is a **net positive**, especially as they have a diversified range of assets and investment capabilities.  **[IVZ_3393927_17]**  They are optimistic that this could improve fee rates and revenue growth.  **[IVZ_3393927_17]** 

18. **Expected Operating Margin Improvement**  
    **Q:** What's your outlook on operating margin improvement?  
    **A:** Management is optimistic about continuing to **improve operating margins**.  **[IVZ_3393927_25]**  They've demonstrated strength across capabilities delivering **profitable growth**.  **[IVZ_3393927_25]**  Focus remains on investment performance, narrowing outflows in fundamental equities, and leveraging growth opportunities in other areas.  **[IVZ_3393927_25]** 

a0379bb760e6200e49941f885918beeba4919ee959f5096034e83fd5941f2d71

1. **Margin Pressure**  
   **Q:** How is business mix impacting margins?  
   **A:** Management acknowledged that margins in Q4 '23 were at their lowest level, partly due to a shift in business mix toward lower-fee products like ETFs and index funds, which puts pressure on net revenue yield.  **[IVZ_3370581_11]**  Additionally, fee cuts in China have modestly lowered margins there, though they remain above the firm average.  **[IVZ_3370581_11]** 

2. **Expense Outlook**  
   **Q:** What's the outlook for expenses, especially regarding the State Street Alpha project?  
   **A:** The State Street Alpha project's implementation costs are expected to be around **$10 million per quarter** throughout 2024, with expenses peaking before declining in 2025 and beyond as they streamline operations.  **[IVZ_3370581_10]**  Overall expenses are expected to remain **flat** in 2024 compared to 2023, despite inflationary pressures.  **[IVZ_3370581_10]** 

3. **Capital Allocation**  
   **Q:** When will share buybacks resume and what's the expected payout ratio?  
   **A:** Management aims to reduce net debt to zero before resuming share buybacks, which is expected in a couple of quarters.  **[IVZ_3370581_13]**  They anticipate maintaining a payout ratio in the **40% to 60%** range, balancing modest dividend increases with buybacks.  **[IVZ_3370581_13]** 

4. **Alternatives Growth**  
   **Q:** How is the alternatives and private markets business performing?  
   **A:** The private markets segment saw **$1.2 billion** in inflows in private credit and **$400 million** in direct real estate, despite challenges in real estate markets.  **[IVZ_3370581_9]**  Management views alternatives as a key growth opportunity, especially by expanding into wealth management channels.  **[IVZ_3370581_9]** 

5. **Emerging Markets Fund**  
   **Q:** What will drive renewed interest in the developing markets fund?  
   **A:** Improved investment performance is key to reducing redemptions and attracting new investors.  **[IVZ_3370581_15]**  However, a material uptick in sales depends on a broader return of demand for emerging market equities.  **[IVZ_3370581_15]** 

6. **Money Market Outflows**  
   **Q:** Where are money market outflows going?  
   **A:** Money market outflows are primarily from institutional clients, particularly corporate treasurers moving into T-bills to take advantage of higher rates.  **[IVZ_3370581_7]**  Retail clients represent only about **15%** of their liquidity products, and flows are starting to move into ETFs and fixed income products like municipal bonds and investment-grade strategies.  **[IVZ_3370581_7]** 

defe591c086077d98238027aeac39238ffedb1e035692d088dc50c94d94980a4

- Invesco is experiencing **outflows in public alternative strategies**, including commodity ETFs, listed real estate, and global asset allocation, which **offset gains in private market inflows**, indicating challenges in key product areas.  **[IVZ_3370581_9]**
- **Investor sentiment in emerging markets and international equities remains weak**, and Invesco's developing markets fund continues to see outflows; **gross sales are unlikely to improve until investor demand returns**, which is difficult to predict.  **[IVZ_3370581_15]**
- **Expenses are expected to remain flat or slightly higher in 2024**, due to ongoing implementation costs, inflationary pressures, and fixed expense elements, **limiting margin expansion** despite the company's efforts to streamline operations.  **[IVZ_3370581_16]** **[IVZ_3370581_23]**

3761e435efeadf36bc41e867bcb74a9a16aae09bc15be1a60ae3094c5b2a50ee

- **Decreasing Fee Rates Due to Mix Shift**: The fee rates on ETFs and multi-asset products have come down due to an ongoing mix shift towards lower-fee products, which may negatively impact revenue growth and profitability.  **[IVZ_3393927_8]** ,  **[IVZ_3393927_19]**
- **Net Outflows in Higher-Fee Fundamental Equity Products**: Invesco is experiencing net redemptions in higher-fee fundamental equity products due to secular shifts from active to passive investing, challenging their ability to maintain organic revenue growth.  **[IVZ_3393927_14]** ,  **[IVZ_3393927_25]**
- **Unsustainable Expense Reductions**: The recent decrease in G&A expenses from lower professional fees is not expected to be sustainable, potentially leading to increased expenses and pressure on operating margins in future quarters.  **[IVZ_3393927_11]**

e904f9a246ed077eedf1f0d8f5d1dde9d16e0f3bde61c91b4fc88f415a225a2b

- **Invesco's ETF business is scaling well with profit margin expansion**, with 10 U.S. ETFs having more than **$1 billion** of inflows in the past six months, indicating broadening growth.  **[IVZ_3393927_19]**
- **The institutional pipeline remains strong at around $14-$15 billion**, with fee rates on the high side (25 to 35 basis points), and regions like Asia and Europe showing increased momentum.  **[IVZ_3393927_23]**
- **Invesco is expanding in real estate debt funds**, which have been added to **two major wealth management platforms** over the past year, demonstrating progress in alternative investment strategies.  **[IVZ_3393927_12]**

732c0f387bcb5d5759057dac3092b66127d07b7cc4e33089586dbc77bce0d66c

Invesco Ltd (IVZ)

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