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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Invesco Ltd | NYSE:IVZ | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.31 | 2.13% | 14.84 | 15.12 | 14.78 | 14.83 | 5,526,780 | 01:00:00 |
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Bermuda
(State or Other Jurisdiction of Incorporation or Organization)
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98-0557567
(I.R.S. Employer Identification No.)
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1555 Peachtree Street, N.E., Suite 1800, Atlanta, GA
(Address of Principal Executive Offices)
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30309
(Zip Code)
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Large accelerated filer
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Accelerated filer
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Non-accelerated filer
o
(Do not check if a smaller reporting company)
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Smaller reporting company
o
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Page
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TABLE OF CONTENTS
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As of
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$ in millions, except per share data
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September 30, 2016
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December 31, 2015
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ASSETS
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Cash and cash equivalents
|
1,581.3
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1,851.4
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Unsettled fund receivables
|
688.1
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566.3
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Accounts receivable
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511.9
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528.1
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Investments
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877.7
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1,019.1
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Assets of consolidated sponsored investment products (CSIP)
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—
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319.1
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Assets of consolidated investment products (CIP):
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Cash and cash equivalents of CIP
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315.0
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363.3
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Accounts receivable and other assets of CIP
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63.3
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173.5
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Investments of CIP
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4,403.5
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6,016.1
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Assets held for policyholders
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7,387.5
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6,051.5
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Prepaid assets
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130.8
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121.2
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Other assets
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83.5
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107.0
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Property, equipment and software, net
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444.6
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426.9
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Intangible assets, net
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1,407.9
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1,354.0
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Goodwill
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6,242.6
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6,175.7
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Total assets
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24,137.7
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25,073.2
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LIABILITIES
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Accrued compensation and benefits
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505.7
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661.3
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Accounts payable and accrued expenses
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868.3
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863.1
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Liabilities of CIP:
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Debt of CIP
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3,860.0
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5,437.0
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Other liabilities of CIP
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268.1
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273.7
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Policyholder payables
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7,387.5
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6,051.5
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Unsettled fund payables
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662.6
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561.9
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Long-term debt
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2,073.2
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2,072.8
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Deferred tax liabilities, net
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341.0
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288.9
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Total liabilities
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15,966.4
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16,210.2
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Commitments and contingencies (See Note 11)
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TEMPORARY EQUITY
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Redeemable noncontrolling interests in consolidated entities
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347.0
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167.3
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PERMANENT EQUITY
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Equity attributable to Invesco Ltd.:
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Common shares ($0.20 par value; 1,050.0 million authorized; 490.4 million shares issued as of September 30, 2016 and December 31, 2015)
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98.1
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98.1
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Additional paid-in-capital
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6,206.5
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6,197.7
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Treasury shares
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(2,715.2
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)
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(2,404.1
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)
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Retained earnings
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4,721.0
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4,439.6
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Accumulated other comprehensive income/(loss), net of tax
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(573.7
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)
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(446.0
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)
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Total equity attributable to Invesco Ltd.
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7,736.7
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7,885.3
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Equity attributable to nonredeemable noncontrolling interests in consolidated entities
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87.6
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810.4
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Total permanent equity
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7,824.3
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8,695.7
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Total liabilities, temporary and permanent equity
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24,137.7
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25,073.2
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Three months ended September 30,
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Nine months ended September 30,
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$ in millions, except per share data
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2016
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2015
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2016
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2015
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Operating revenues:
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||||||||
Investment management fees
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965.9
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1,016.9
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2,826.2
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3,074.0
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Service and distribution fees
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213.4
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214.8
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614.5
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647.8
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Performance fees
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3.4
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15.6
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26.8
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69.1
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Other
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18.9
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26.2
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72.2
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92.3
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Total operating revenues
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1,201.6
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1,273.5
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3,539.7
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3,883.2
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Operating expenses:
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Third-party distribution, service and advisory
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362.1
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392.3
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1,057.7
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1,204.7
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Employee compensation
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345.1
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337.6
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1,039.8
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1,045.7
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Marketing
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26.4
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24.9
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79.6
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81.3
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Property, office and technology
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78.2
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79.0
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240.4
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230.7
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General and administrative
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83.5
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87.0
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240.0
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266.0
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Total operating expenses
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895.3
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920.8
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2,657.5
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2,828.4
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Operating income
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306.3
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352.7
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882.2
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1,054.8
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Other income/(expense):
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Equity in earnings of unconsolidated affiliates
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5.5
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8.2
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(2.1
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)
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32.0
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Interest and dividend income
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2.6
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2.4
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8.7
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7.5
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Interest expense
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(23.9
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)
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(20.4
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(69.9
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(58.7
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)
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Other gains and losses, net
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16.2
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0.9
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7.3
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(5.2
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)
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Other income/(expense) of CIP, net
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39.0
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1.5
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69.4
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39.1
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Other income/(expense) of CSIP, net
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—
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(3.6
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)
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—
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10.9
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Income before income taxes
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345.7
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341.7
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895.6
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1,080.4
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Income tax provision
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(89.8
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)
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(100.4
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)
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(245.4
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)
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(311.1
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)
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||||
Net income
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255.9
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241.3
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650.2
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769.3
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||||
Net (income)/loss attributable to noncontrolling interests in consolidated entities
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(14.7
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)
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8.0
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(22.5
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)
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(3.1
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)
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||||
Net income attributable to Invesco Ltd.
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241.2
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249.3
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627.7
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766.2
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Earnings per share:
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||||||||
-basic
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$0.58
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$0.58
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$1.51
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$1.78
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-diluted
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$0.58
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$0.58
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$1.51
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$1.78
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Dividends declared per share
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$0.28
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$0.27
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$0.83
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$0.79
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Three months ended September 30,
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Nine months ended September 30,
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||||||||
$ in millions
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2016
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2015
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2016
|
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2015
|
||||
Net income
|
255.9
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|
241.3
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650.2
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769.3
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Other comprehensive income/(loss), net of tax:
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|
||||
Currency translation differences on investments in foreign subsidiaries, net of tax
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(63.4
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)
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(223.9
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)
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(132.8
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)
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(364.2
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)
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Actuarial (loss)/gain related to employee benefit plans, net of tax
|
—
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—
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|
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(0.4
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)
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—
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Reclassification of prior service cost/(credit) into employee compensation expense, net of tax
|
(1.8
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)
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(1.8
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)
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(5.2
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)
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(4.8
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)
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Reclassification of actuarial (gain)/loss into employee compensation expense, net of tax
|
0.4
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0.6
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|
1.2
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1.7
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Share of other comprehensive income/(loss) of equity method investments, net of tax
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2.4
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(1.9
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)
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3.0
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(0.6
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)
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Unrealized gains/(losses) on available-for-sale investments, net of tax
|
2.3
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(5.8
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)
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4.0
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(7.6
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)
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Reclassification of net (gains)/losses realized on available-for-sale investments included in other gains and losses, net, net of tax
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(0.2
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)
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(0.7
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)
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(0.5
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)
|
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(1.6
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)
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Other comprehensive income/(loss), net of tax
|
(60.3
|
)
|
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(233.5
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)
|
|
(130.7
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)
|
|
(377.1
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)
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Total comprehensive income/(loss)
|
195.6
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|
7.8
|
|
|
519.5
|
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|
392.2
|
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Comprehensive loss/(income) attributable to noncontrolling interests in consolidated entities
|
(14.2
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)
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8.0
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(19.5
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)
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(3.1
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)
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Comprehensive income/(loss) attributable to Invesco Ltd.
|
181.4
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|
15.8
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|
|
500.0
|
|
|
389.1
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|
Nine months ended September 30,
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||||
$ in millions
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2016
|
|
2015
|
||
Operating activities:
|
|
|
|
||
Net income
|
650.2
|
|
|
769.3
|
|
Adjustments to reconcile net income to net cash provided by/(used in) operating activities:
|
|
|
|
||
Amortization and depreciation
|
75.5
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|
68.6
|
|
Share-based compensation expense
|
118.4
|
|
|
112.9
|
|
Other (gains)/losses, net
|
(7.3
|
)
|
|
5.2
|
|
Other (gains)/losses of CSIP, net
|
—
|
|
|
(1.6
|
)
|
Other (gains)/losses of CIP, net
|
(18.1
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)
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|
12.6
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|
Equity in earnings of unconsolidated affiliates
|
2.1
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(32.0
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)
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Dividends from unconsolidated affiliates
|
16.3
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17.9
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|
Changes in operating assets and liabilities:
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(Increase)/decrease in cash held by CIP
|
(66.2
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)
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(184.3
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)
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(Increase)/decrease in cash held by CSIP
|
—
|
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(3.1
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)
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(Purchase)/sale of investments by CIP, net
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(131.9
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)
|
|
—
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(Purchase)/sale of trading investments, net
|
(13.4
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)
|
|
(106.7
|
)
|
(Increase)/decrease in receivables
|
(2,257.5
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)
|
|
(4,168.4
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)
|
Increase/(decrease) in payables
|
2,174.0
|
|
|
4,065.2
|
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Net cash provided by/(used in) operating activities
|
542.1
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|
|
555.6
|
|
Investing activities:
|
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|
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Purchase of property, equipment and software
|
(101.3
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)
|
|
(88.1
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)
|
Purchase of available-for-sale investments
|
(4.3
|
)
|
|
(41.5
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)
|
Sale of available-for-sale investments
|
38.4
|
|
|
48.5
|
|
Purchase of investments by CIP
|
(2,398.0
|
)
|
|
(3,226.4
|
)
|
Sale of investments by CIP
|
1,835.9
|
|
|
2,827.8
|
|
Purchase of investments by CSIP
|
—
|
|
|
(397.5
|
)
|
Sale of investments by CSIP
|
—
|
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|
384.0
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Purchase of other investments
|
(98.3
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)
|
|
(115.2
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)
|
Sale of other investments
|
67.7
|
|
|
73.8
|
|
Returns of capital and distributions from unconsolidated partnership investments
|
30.0
|
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|
45.1
|
|
Purchase of business
|
(121.9
|
)
|
|
—
|
|
Net cash provided by/(used in) investing activities
|
(751.8
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)
|
|
(489.5
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)
|
Financing activities:
|
|
|
|
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Proceeds from exercises of share options
|
—
|
|
|
2.1
|
|
Purchases of treasury shares
|
(385.0
|
)
|
|
(334.0
|
)
|
Dividends paid
|
(346.3
|
)
|
|
(340.8
|
)
|
Excess tax benefits from share-based compensation
|
(2.4
|
)
|
|
19.1
|
|
Third-party capital invested into CIP
|
193.9
|
|
|
63.3
|
|
Third-party capital distributed by CIP
|
(64.1
|
)
|
|
(99.0
|
)
|
Third-party capital invested into CSIP
|
—
|
|
|
13.5
|
|
Borrowings of debt by CIP
|
760.1
|
|
|
2,091.8
|
|
Repayments of debt by CIP
|
(130.2
|
)
|
|
(1,457.5
|
)
|
Net borrowings/(repayments) under credit facility
|
—
|
|
|
99.5
|
|
Payment of contingent consideration
|
(9.5
|
)
|
|
(4.6
|
)
|
Net cash provided by/(used in) financing activities
|
16.5
|
|
|
53.4
|
|
Increase/(decrease) in cash and cash equivalents
|
(193.2
|
)
|
|
119.5
|
|
Foreign exchange movement on cash and cash equivalents
|
(76.9
|
)
|
|
(43.0
|
)
|
Cash and cash equivalents, beginning of period
|
1,851.4
|
|
|
1,514.2
|
|
Cash and cash equivalents, end of period
|
1,581.3
|
|
|
1,590.7
|
|
Supplemental Cash Flow Information:
|
|
|
|
||
Interest paid
|
(60.4
|
)
|
|
(49.0
|
)
|
Interest received
|
4.0
|
|
|
6.8
|
|
Taxes paid
|
(148.1
|
)
|
|
(232.7
|
)
|
|
Equity Attributable to Invesco Ltd.
|
|
|
|
|
|
|
|||||||||||||||||||
$ in millions
|
Co
mmon
Shares
|
|
Additional Paid-in-Capital
|
|
Treasury Shares
|
|
Retained Earnings
|
|
Accumulated Other Comprehensive Income/(Loss)
|
|
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
|
—
|
|
|
—
|
|
|
—
|
|
|
627.7
|
|
|
—
|
|
|
627.7
|
|
|
(2.0
|
)
|
|
625.7
|
|
|
24.5
|
|
Other comprehensive income/(loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(127.7
|
)
|
|
(127.7
|
)
|
|
—
|
|
|
(127.7
|
)
|
|
(3.0
|
)
|
Change in noncontrolling interests in consolidated entities, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12.7
|
|
|
12.7
|
|
|
(68.4
|
)
|
Dividends
|
—
|
|
|
—
|
|
|
—
|
|
|
(346.3
|
)
|
|
—
|
|
|
(346.3
|
)
|
|
—
|
|
|
(346.3
|
)
|
|
—
|
|
Employee share plans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Share-based compensation
|
—
|
|
|
118.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
118.4
|
|
|
—
|
|
|
118.4
|
|
|
—
|
|
Vested shares
|
—
|
|
|
(96.4
|
)
|
|
96.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Other share awards
|
—
|
|
|
0.6
|
|
|
6.0
|
|
|
—
|
|
|
—
|
|
|
6.6
|
|
|
—
|
|
|
6.6
|
|
|
—
|
|
Tax impact of share-based payment
|
—
|
|
|
(2.4
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2.4
|
)
|
|
—
|
|
|
(2.4
|
)
|
|
—
|
|
Purchase of shares
|
—
|
|
|
(11.4
|
)
|
|
(413.5
|
)
|
|
—
|
|
|
—
|
|
|
(424.9
|
)
|
|
—
|
|
|
(424.9
|
)
|
|
—
|
|
September 30, 2016
|
98.1
|
|
|
6,206.5
|
|
|
(2,715.2
|
)
|
|
4,721.0
|
|
|
(573.7
|
)
|
|
7,736.7
|
|
|
87.6
|
|
|
7,824.3
|
|
|
347.0
|
|
|
Equity Attributable to Invesco Ltd.
|
|
|
|
|
|
|
||||||||||||||||||||||
$ in millions
|
Co
mmon
Shares
|
|
Additional Paid-in-Capital
|
|
Treasury Shares
|
|
Retained Earnings
|
|
Retained Earnings Appropriated for Investors in CIP
|
|
Accumulated Other Comprehensive Income
|
|
Total Equity Attributable to Invesco Ltd.
|
|
Nonredeemable Noncontrolling Interests in Consolidated Entities
|
|
Total Permanent Equity
|
|
Redeemable Noncontrolling Interests in Consolidated Entities Temporary Equity
|
||||||||||
January 1, 2015
|
98.1
|
|
|
6,133.6
|
|
|
(1,898.1
|
)
|
|
3,926.0
|
|
|
17.6
|
|
|
48.8
|
|
|
8,326.0
|
|
|
793.8
|
|
|
9,119.8
|
|
|
165.5
|
|
Adjustment for adoption of ASU 2014-13
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(17.6
|
)
|
|
—
|
|
|
(17.6
|
)
|
|
—
|
|
|
(17.6
|
)
|
|
—
|
|
January 1, 2015, as adjusted
|
98.1
|
|
|
6,133.6
|
|
|
(1,898.1
|
)
|
|
3,926.0
|
|
|
—
|
|
|
48.8
|
|
|
8,308.4
|
|
|
793.8
|
|
|
9,102.2
|
|
|
165.5
|
|
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
766.2
|
|
|
—
|
|
|
—
|
|
|
766.2
|
|
|
3.7
|
|
|
769.9
|
|
|
(0.6
|
)
|
Other comprehensive income/(loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(377.1
|
)
|
|
(377.1
|
)
|
|
—
|
|
|
(377.1
|
)
|
|
—
|
|
Change in noncontrolling interests in consolidated entities, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(34.4
|
)
|
|
(34.4
|
)
|
|
11.5
|
|
Dividends
|
—
|
|
|
—
|
|
|
—
|
|
|
(340.8
|
)
|
|
—
|
|
|
—
|
|
|
(340.8
|
)
|
|
—
|
|
|
(340.8
|
)
|
|
—
|
|
Employee share plans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Share-based compensation
|
—
|
|
|
112.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
112.9
|
|
|
—
|
|
|
112.9
|
|
|
—
|
|
Vested shares
|
—
|
|
|
(101.2
|
)
|
|
101.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Exercise of options
|
—
|
|
|
(0.5
|
)
|
|
2.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2.1
|
|
|
—
|
|
|
2.1
|
|
|
—
|
|
Other share awards
|
—
|
|
|
2.3
|
|
|
3.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5.5
|
|
|
—
|
|
|
5.5
|
|
|
—
|
|
Tax impact of share-based payment
|
—
|
|
|
19.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
19.1
|
|
|
—
|
|
|
19.1
|
|
|
—
|
|
Purchase of shares
|
—
|
|
|
—
|
|
|
(403.6
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(403.6
|
)
|
|
—
|
|
|
(403.6
|
)
|
|
—
|
|
September 30, 2015
|
98.1
|
|
|
6,166.2
|
|
|
(2,194.7
|
)
|
|
4,351.4
|
|
|
—
|
|
|
(328.3
|
)
|
|
8,092.7
|
|
|
763.1
|
|
|
8,855.8
|
|
|
176.4
|
|
|
|
|
September 30, 2016
|
|
December 31, 2015
|
||||||||
$ in millions
|
Footnote Reference
|
|
Carrying Value
|
|
Fair Value
|
|
Carrying Value
|
|
Fair Value
|
||||
Cash and cash equivalents
|
|
|
1,581.3
|
|
|
1,581.3
|
|
|
1,851.4
|
|
|
1,851.4
|
|
Available-for-sale investments
|
3
|
|
161.2
|
|
|
161.2
|
|
|
233.2
|
|
|
233.2
|
|
Trading investments
|
3
|
|
411.1
|
|
|
411.1
|
|
|
402.7
|
|
|
402.7
|
|
Foreign time deposits
*
|
3
|
|
27.0
|
|
|
27.0
|
|
|
24.7
|
|
|
24.7
|
|
Assets held for policyholders
|
|
|
7,387.5
|
|
|
7,387.5
|
|
|
6,051.5
|
|
|
6,051.5
|
|
Policyholder payables *
|
|
|
(7,387.5
|
)
|
|
(7,387.5
|
)
|
|
(6,051.5
|
)
|
|
(6,051.5
|
)
|
Put option contracts
|
|
|
17.6
|
|
|
17.6
|
|
|
1.4
|
|
|
1.4
|
|
UIT-related financial instruments sold, not yet purchased
|
|
|
(0.2
|
)
|
|
(0.2
|
)
|
|
(2.5
|
)
|
|
(2.5
|
)
|
Contingent consideration liability
|
|
|
(80.7
|
)
|
|
(80.7
|
)
|
|
(83.9
|
)
|
|
(83.9
|
)
|
Long-term debt
*
|
4
|
|
(2,073.2
|
)
|
|
(2,279.5
|
)
|
|
(2,072.8
|
)
|
|
(2,161.3
|
)
|
*
|
These financial instruments are not measured at fair value on a recurring basis. See the indicated footnotes or most recently filed Form 10-K for additional information about the carrying and fair values of these financial instruments. Foreign time deposits are measured at cost plus accrued interest, which approximates fair value, and are accordingly classified as Level 2 securities.
|
•
|
Level 1 - inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.
|
•
|
Level 2 - inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.
|
•
|
Level 3 - inputs to the valuation methodology are unobservable and significant to the fair value measurement.
|
|
As of September 30, 2016
|
||||||||||
$ in millions
|
Fair Value Measurements
|
|
Quoted Prices in Active Markets for Identical Assets
(Level 1)
|
|
Significant Other Observable Inputs
(Level 2)
|
|
Significant Unobservable Inputs
(Level 3)
|
||||
Assets:
|
|
|
|
|
|
|
|
||||
Cash equivalents:
|
|
|
|
|
|
|
|
||||
Money market funds
|
489.2
|
|
|
489.2
|
|
|
—
|
|
|
—
|
|
Investments:*
|
|
|
|
|
|
|
|
||||
Available-for-sale:
|
|
|
|
|
|
|
|
||||
Seed money
|
145.9
|
|
|
145.9
|
|
|
—
|
|
|
—
|
|
CLOs
|
12.0
|
|
|
—
|
|
|
—
|
|
|
12.0
|
|
Other debt securities
|
3.3
|
|
|
—
|
|
|
—
|
|
|
3.3
|
|
Trading investments:
|
|
|
|
|
|
|
|
||||
Investments related to deferred compensation plans
|
172.5
|
|
|
172.5
|
|
|
—
|
|
|
—
|
|
Seed money
|
208.1
|
|
|
208.1
|
|
|
—
|
|
|
—
|
|
Other equity securities
|
29.1
|
|
|
29.1
|
|
|
—
|
|
|
—
|
|
UIT-related equity and debt securities:
|
|
|
|
|
|
|
|
||||
Corporate equities
|
1.0
|
|
|
1.0
|
|
|
—
|
|
|
—
|
|
UITs
|
0.4
|
|
|
0.4
|
|
|
—
|
|
|
—
|
|
Municipal securities
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Assets held for policyholders
|
7,387.5
|
|
|
7,387.5
|
|
|
—
|
|
|
—
|
|
Put option contracts
|
17.6
|
|
|
—
|
|
|
17.6
|
|
|
—
|
|
Total
|
8,466.6
|
|
|
8,433.7
|
|
|
17.6
|
|
|
15.3
|
|
Liabilities:
|
|
|
|
|
|
|
|
||||
UIT-related financial instruments sold, not yet purchased:
|
|
|
|
|
|
|
|
||||
Corporate equities
|
(0.2
|
)
|
|
(0.2
|
)
|
|
—
|
|
|
—
|
|
Contingent consideration liability
|
(80.7
|
)
|
|
—
|
|
|
—
|
|
|
(80.7
|
)
|
Total
|
(80.9
|
)
|
|
(0.2
|
)
|
|
—
|
|
|
(80.7
|
)
|
*
|
Foreign time deposits of
$27.0 million
are excluded from this table. Equity method and other investments of
$272.7 million
and
$5.7 million
, respectively, are also excluded from this table. These investments are not measured at fair value, in accordance with applicable accounting standards.
|
|
As of December 31, 2015
|
||||||||||
$ in millions
|
Fair Value Measurements
|
|
Quoted Prices in Active Markets for Identical Assets
(Level 1)
|
|
Significant Other Observable Inputs
(Level 2) |
|
Significant Unobservable Inputs
(Level 3) |
||||
Assets:
|
|
|
|
|
|
|
|
||||
Cash equivalents:
|
|
|
|
|
|
|
|
||||
Money market funds
|
383.3
|
|
|
383.3
|
|
|
—
|
|
|
—
|
|
Investments:*
|
|
|
|
|
|
|
|
||||
Available-for-sale:
|
|
|
|
|
|
|
|
||||
Seed money
|
225.9
|
|
|
225.9
|
|
|
—
|
|
|
—
|
|
CLOs
|
1.4
|
|
|
—
|
|
|
—
|
|
|
1.4
|
|
Other debt securities
|
5.9
|
|
|
—
|
|
|
—
|
|
|
5.9
|
|
Trading investments:
|
|
|
|
|
|
|
|
||||
Investments related to deferred compensation plans
|
158.8
|
|
|
158.8
|
|
|
—
|
|
|
—
|
|
Seed Money
|
191.2
|
|
|
191.2
|
|
|
—
|
|
|
—
|
|
Other equity securities
|
48.1
|
|
|
48.1
|
|
|
—
|
|
|
—
|
|
UIT-related equity and debt securities:
|
|
|
|
|
|
|
|
||||
Corporate equities
|
1.8
|
|
|
1.8
|
|
|
—
|
|
|
—
|
|
UITs
|
1.5
|
|
|
1.5
|
|
|
—
|
|
|
—
|
|
Municipal securities
|
1.3
|
|
|
—
|
|
|
1.3
|
|
|
—
|
|
Assets held for policyholders
|
6,051.5
|
|
|
6,051.5
|
|
|
—
|
|
|
—
|
|
Put option contracts
|
1.4
|
|
|
—
|
|
|
1.4
|
|
|
—
|
|
Total
|
7,072.1
|
|
|
7,062.1
|
|
|
2.7
|
|
|
7.3
|
|
Liabilities:
|
|
|
|
|
|
|
|
||||
UIT-related financial instruments sold, not yet purchased:
|
|
|
|
|
|
|
|
||||
Corporate equities
|
(2.5
|
)
|
|
(2.5
|
)
|
|
—
|
|
|
—
|
|
Contingent consideration liability
|
(83.9
|
)
|
|
—
|
|
|
—
|
|
|
(83.9
|
)
|
Total
|
(86.4
|
)
|
|
(2.5
|
)
|
|
—
|
|
|
(83.9
|
)
|
*
|
Foreign time deposits of
$24.7 million
are excluded from this table. Equity method and other investments of
$352.8 million
and
$5.7 million
, respectively, are also excluded from this table. These investments are not measured at fair value, in accordance with applicable accounting standards.
|
|
Three months ended September 30, 2016
|
|
Nine months ended September 30, 2016
|
||||||||||||||
$ in millions
|
Contingent Consideration Liability
|
|
CLOs
|
|
Other Debt Securities
|
|
Contingent Consideration Liability
|
|
CLOs
|
|
Other Debt Securities
|
||||||
Beginning balance
|
(89.3
|
)
|
|
11.5
|
|
|
3.3
|
|
|
(83.9
|
)
|
|
1.4
|
|
|
5.9
|
|
Adjustment for adoption of ASU 2015-02
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11.5
|
|
|
—
|
|
Beginning balance, as adjusted
|
(89.3
|
)
|
|
11.5
|
|
|
3.3
|
|
|
(83.9
|
)
|
|
12.9
|
|
|
5.9
|
|
Returns of capital
|
—
|
|
|
(0.9
|
)
|
|
—
|
|
|
—
|
|
|
(2.3
|
)
|
|
(2.6
|
)
|
Net unrealized gains and losses included in other gains and losses, net*
|
5.3
|
|
|
—
|
|
|
—
|
|
|
(6.3
|
)
|
|
—
|
|
|
—
|
|
Net unrealized gains and losses included in accumulated other comprehensive income/(loss)
*
|
—
|
|
|
1.4
|
|
|
—
|
|
|
—
|
|
|
1.4
|
|
|
—
|
|
Disposition/settlements
|
3.3
|
|
|
—
|
|
|
—
|
|
|
9.5
|
|
|
—
|
|
|
—
|
|
Ending balance
|
(80.7
|
)
|
|
12.0
|
|
|
3.3
|
|
|
(80.7
|
)
|
|
12.0
|
|
|
3.3
|
|
|
Three months ended September 30, 2015
|
|
Nine months ended September 30, 2015
|
||||||||||||||
$ in millions
|
Contingent Consideration Liability
|
|
CLOs
|
|
Other Debt Securities
|
|
Contingent Consideration Liability
|
|
CLOs
|
|
Other Debt Securities
|
||||||
Beginning balance
|
(118.7
|
)
|
|
1.3
|
|
|
6.3
|
|
|
—
|
|
|
3.4
|
|
|
6.3
|
|
Acquisition
|
—
|
|
|
—
|
|
|
—
|
|
|
(119.3
|
)
|
|
—
|
|
|
—
|
|
Returns of capital
|
—
|
|
|
—
|
|
|
(0.4
|
)
|
|
—
|
|
|
(0.1
|
)
|
|
(0.4
|
)
|
Net unrealized gains and losses included in other gains and losses*
|
18.4
|
|
|
—
|
|
|
—
|
|
|
18.4
|
|
|
—
|
|
|
—
|
|
Net unrealized gains and losses included in accumulated other comprehensive income/(loss)
*
|
—
|
|
|
(0.2
|
)
|
|
—
|
|
|
—
|
|
|
(0.2
|
)
|
|
—
|
|
Disposition/settlements
|
4.0
|
|
|
—
|
|
|
—
|
|
|
4.6
|
|
|
(2.0
|
)
|
|
—
|
|
Ending balance
|
(96.3
|
)
|
|
1.1
|
|
|
5.9
|
|
|
(96.3
|
)
|
|
1.1
|
|
|
5.9
|
|
*
|
These unrealized gains and losses are attributable to balances still held at the respective period ends.
|
|
September 30, 2016
|
|
December 31, 2015
|
||||||||||||||||||||
$ in millions
|
Cost
|
|
Gross Unrealized Holding Gains
|
|
Gross Unrealized Holding Losses
|
|
Fair Value
|
|
Cost
|
|
Gross Unrealized Holding Gains
|
|
Gross Unrealized Holding Losses
|
|
Fair Value
|
||||||||
Seed money
|
144.0
|
|
|
7.3
|
|
|
(5.4
|
)
|
|
145.9
|
|
|
227.6
|
|
|
7.6
|
|
|
(9.3
|
)
|
|
225.9
|
|
CLOs
|
9.9
|
|
|
2.4
|
|
|
(0.3
|
)
|
|
12.0
|
|
|
1.3
|
|
|
0.1
|
|
|
—
|
|
|
1.4
|
|
Other debt securities
|
3.1
|
|
|
0.2
|
|
|
—
|
|
|
3.3
|
|
|
5.9
|
|
|
—
|
|
|
—
|
|
|
5.9
|
|
|
157.0
|
|
|
9.9
|
|
|
(5.7
|
)
|
|
161.2
|
|
|
234.8
|
|
|
7.7
|
|
|
(9.3
|
)
|
|
233.2
|
|
|
September 30, 2016
|
|
December 31, 2015
|
||||||||
$ in millions
|
Fair Value
|
|
Gross Unrealized Losses
|
|
Fair Value
|
|
Gross Unrealized Losses
|
||||
Less than 12 months
|
17.5
|
|
|
(0.5
|
)
|
|
93.0
|
|
|
(3.0
|
)
|
12 months or greater
|
71.9
|
|
|
(4.9
|
)
|
|
65.5
|
|
|
(6.3
|
)
|
Total
|
89.4
|
|
|
(5.4
|
)
|
|
158.5
|
|
|
(9.3
|
)
|
|
Available-for-Sale (Fair Value)
|
|
Less than one year
|
1.7
|
|
One to five years
|
1.7
|
|
Five to ten years
|
9.1
|
|
Greater than ten years
|
2.8
|
|
Total available-for-sale
|
15.3
|
|
|
September 30, 2016
|
|
December 31, 2015
|
||||||||
$ in millions
|
Carrying Value**
|
|
Fair Value
|
|
Carrying Value**
|
|
Fair Value
|
||||
Floating rate credit facility expiring August 7, 2020
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Unsecured Senior Notes*:
|
|
|
|
|
|
|
|
||||
$600 million 3.125% - due November 30, 2022
|
596.2
|
|
|
622.6
|
|
|
596.1
|
|
|
601.4
|
|
$600 million 4.000% - due January 30, 2024
|
593.0
|
|
|
651.2
|
|
|
592.7
|
|
|
628.3
|
|
$500 million 3.750% - due January 15, 2026
|
494.4
|
|
|
531.4
|
|
|
494.2
|
|
|
503.0
|
|
$400 million 5.375% - due November 30, 2043
|
389.6
|
|
|
474.3
|
|
|
389.8
|
|
|
428.6
|
|
Long-term debt
|
2,073.2
|
|
|
2,279.5
|
|
|
2,072.8
|
|
|
2,161.3
|
|
*
|
The company's senior note indentures contain certain restrictions on mergers or consolidations. Beyond these items, there are no other restrictive covenants in the indentures.
|
**
|
The difference between the principal amounts and the carrying values of the senior notes in the table above reflect the unamortized debt issuance costs and discounts.
|
|
As of
|
||||
In millions
|
September 30, 2016
|
|
December 31, 2015
|
|
|
Common shares issued
|
490.4
|
|
|
490.4
|
|
Less: Treasury shares for which dividend and voting rights do not apply
|
(81.9
|
)
|
|
(72.9
|
)
|
Common shares outstanding
|
408.5
|
|
|
417.5
|
|
|
For the three months ended September 30, 2016
|
|||||||||||||
$ in millions
|
Foreign currency translation
|
|
Employee benefit plans
|
|
Equity method investments
|
|
Available-for-sale investments
|
|
Total
|
|||||
Other comprehensive income/(loss) net of tax:
|
|
|
|
|
|
|
|
|
|
|||||
Currency translation differences on investments in foreign subsidiaries, net of tax
|
(63.4
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(63.4
|
)
|
Actuarial (loss)/gain related to employee benefit plans, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Reclassification of prior service cost/(credit) into employee compensation expense, net of tax
|
—
|
|
|
(1.8
|
)
|
|
—
|
|
|
—
|
|
|
(1.8
|
)
|
Reclassification of actuarial (gain)/loss into employee compensation expense, net of tax
|
—
|
|
|
0.4
|
|
|
—
|
|
|
—
|
|
|
0.4
|
|
Share of other comprehensive income/(loss) of equity method investments, net of tax
|
—
|
|
|
—
|
|
|
2.4
|
|
|
—
|
|
|
2.4
|
|
Unrealized gains/(losses) on available-for-sale investments, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
2.3
|
|
|
2.3
|
|
Reclassification of net (gains)/losses realized on available-for-sale investments included in other gains and losses, net, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.2
|
)
|
|
(0.2
|
)
|
Other comprehensive income/(loss), net of tax
|
(63.4
|
)
|
|
(1.4
|
)
|
|
2.4
|
|
|
2.1
|
|
|
(60.3
|
)
|
|
|
|
|
|
|
|
|
|
|
|||||
Beginning balance
|
(432.7
|
)
|
|
(88.6
|
)
|
|
6.5
|
|
|
0.9
|
|
|
(513.9
|
)
|
Other comprehensive income/(loss), net of tax
|
(63.4
|
)
|
|
(1.4
|
)
|
|
2.4
|
|
|
2.1
|
|
|
(60.3
|
)
|
Other comprehensive (income)/loss attributable to noncontrolling interests
|
0.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.5
|
|
Ending balance
|
(495.6
|
)
|
|
(90.0
|
)
|
|
8.9
|
|
|
3.0
|
|
|
(573.7
|
)
|
|
For the nine months ended September 30, 2016
|
|||||||||||||
$ in millions
|
Foreign currency translation
|
|
Employee benefit plans
|
|
Equity method investments
|
|
Available-for-sale investments
|
|
Total
|
|||||
Other comprehensive income/(loss) net of tax:
|
|
|
|
|
|
|
|
|
|
|||||
Currency translation differences on investments in foreign subsidiaries, net of tax
|
(132.8
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(132.8
|
)
|
Actuarial (loss)/gain related to employee benefit plans, net of tax
|
—
|
|
|
(0.4
|
)
|
|
—
|
|
|
—
|
|
|
(0.4
|
)
|
Reclassification of prior service cost/(credit) into employee compensation expense, net of tax
|
—
|
|
|
(5.2
|
)
|
|
—
|
|
|
—
|
|
|
(5.2
|
)
|
Reclassification of actuarial (gain)/loss into employee compensation expense, net of tax
|
—
|
|
|
1.2
|
|
|
—
|
|
|
—
|
|
|
1.2
|
|
Share of other comprehensive income/(loss) of equity method investments, net of tax
|
—
|
|
|
—
|
|
|
3.0
|
|
|
—
|
|
|
3.0
|
|
Unrealized gains/(losses) on available-for-sale investments, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
4.0
|
|
|
4.0
|
|
Reclassification of net (gains)/losses realized on available-for-sale investments included in other gains and losses, net, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.5
|
)
|
|
(0.5
|
)
|
Other comprehensive income/(loss), net of tax
|
(132.8
|
)
|
|
(4.4
|
)
|
|
3.0
|
|
|
3.5
|
|
|
(130.7
|
)
|
|
|
|
|
|
|
|
|
|
|
|||||
Beginning balance
|
(365.8
|
)
|
|
(85.6
|
)
|
|
5.9
|
|
|
(0.5
|
)
|
|
(446.0
|
)
|
Other comprehensive income/(loss), net of tax
|
(132.8
|
)
|
|
(4.4
|
)
|
|
3.0
|
|
|
3.5
|
|
|
(130.7
|
)
|
Other comprehensive (income)/loss attributable to noncontrolling interests
|
3.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3.0
|
|
Ending balance
|
(495.6
|
)
|
|
(90.0
|
)
|
|
8.9
|
|
|
3.0
|
|
|
(573.7
|
)
|
|
For the three months ended September 30, 2015
|
|||||||||||||
$ in millions
|
Foreign currency translation
|
|
Employee benefit plans
|
|
Equity method investments
|
|
Available-for-sale investments
|
|
Total
|
|||||
Other comprehensive income/(loss) net of tax:
|
|
|
|
|
|
|
|
|
|
|||||
Currency translation differences on investments in foreign subsidiaries, net of tax
|
(223.9
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(223.9
|
)
|
Reclassification of prior service cost/(credit) into employee compensation expense, net of tax
|
—
|
|
|
(1.8
|
)
|
|
—
|
|
|
—
|
|
|
(1.8
|
)
|
Reclassification of actuarial (gain)/loss into employee compensation expense, net of tax
|
—
|
|
|
0.6
|
|
|
—
|
|
|
—
|
|
|
0.6
|
|
Share of other comprehensive income/(loss) of equity method investments, net of tax
|
—
|
|
|
—
|
|
|
(1.9
|
)
|
|
—
|
|
|
(1.9
|
)
|
Unrealized gains/(losses) on available-for-sale investments, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
(5.8
|
)
|
|
(5.8
|
)
|
Reclassification of net (gains)/losses realized on available-for-sale investments included in other gains and losses, net, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.7
|
)
|
|
(0.7
|
)
|
Other comprehensive income/(loss), net of tax
|
(223.9
|
)
|
|
(1.2
|
)
|
|
(1.9
|
)
|
|
(6.5
|
)
|
|
(233.5
|
)
|
|
|
|
|
|
|
|
|
|
|
|||||
Beginning balance
|
(12.2
|
)
|
|
(93.6
|
)
|
|
7.8
|
|
|
3.2
|
|
|
(94.8
|
)
|
Other comprehensive income/(loss), net of tax
|
(223.9
|
)
|
|
(1.2
|
)
|
|
(1.9
|
)
|
|
(6.5
|
)
|
|
(233.5
|
)
|
Ending balance
|
(236.1
|
)
|
|
(94.8
|
)
|
|
5.9
|
|
|
(3.3
|
)
|
|
(328.3
|
)
|
|
For the nine months ended September 30, 2015
|
|||||||||||||
$ in millions
|
Foreign currency translation
|
|
Employee benefit plans
|
|
Equity method investments
|
|
Available-for-sale investments
|
|
Total
|
|||||
Other comprehensive income/(loss) net of tax:
|
|
|
|
|
|
|
|
|
|
|||||
Currency translation differences on investments in foreign subsidiaries, net of tax
|
(364.2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(364.2
|
)
|
Reclassification of prior service cost/(credit) into employee compensation expense, net of tax
|
—
|
|
|
(4.8
|
)
|
|
—
|
|
|
—
|
|
|
(4.8
|
)
|
Reclassification of actuarial (gain)/loss into employee compensation expense, net of tax
|
—
|
|
|
1.7
|
|
|
—
|
|
|
—
|
|
|
1.7
|
|
Share of other comprehensive income/(loss) of equity method investments, net of tax
|
—
|
|
|
—
|
|
|
(0.6
|
)
|
|
—
|
|
|
(0.6
|
)
|
Unrealized gains/(losses) on available-for-sale investments, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
(7.6
|
)
|
|
(7.6
|
)
|
Reclassification of net (gains)/losses realized on available-for-sale investments included in other gains and losses, net, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
(1.6
|
)
|
|
(1.6
|
)
|
Other comprehensive income/(loss), net of tax
|
(364.2
|
)
|
|
(3.1
|
)
|
|
(0.6
|
)
|
|
(9.2
|
)
|
|
(377.1
|
)
|
|
|
|
|
|
|
|
|
|
|
|||||
Beginning balance
|
128.1
|
|
|
(91.7
|
)
|
|
6.5
|
|
|
5.9
|
|
|
48.8
|
|
Other comprehensive income/(loss), net of tax
|
(364.2
|
)
|
|
(3.1
|
)
|
|
(0.6
|
)
|
|
(9.2
|
)
|
|
(377.1
|
)
|
Ending balance
|
(236.1
|
)
|
|
(94.8
|
)
|
|
5.9
|
|
|
(3.3
|
)
|
|
(328.3
|
)
|
|
For the nine months ended September 30, 2016
|
|
For the nine months ended September 30, 2015
|
|||||||||||
Millions of shares, except fair values
|
Time- Vested
|
|
Performance- Vested
|
|
Weighted Average Grant Date Fair Value ($)
|
|
Time- Vested
|
|
Performance- Vested
|
|||||
Unvested at the beginning of period
|
10.4
|
|
|
0.6
|
|
|
33.62
|
|
|
11.5
|
|
|
0.5
|
|
Granted during the period
|
6.4
|
|
|
0.4
|
|
|
27.40
|
|
|
4.0
|
|
|
0.3
|
|
Forfeited during the period
|
(0.2
|
)
|
|
—
|
|
|
31.61
|
|
|
(0.1
|
)
|
|
—
|
|
Vested and distributed during the period
|
(4.2
|
)
|
|
(0.2
|
)
|
|
31.38
|
|
|
(4.6
|
)
|
|
(0.2
|
)
|
Unvested at the end of the period
|
12.4
|
|
|
0.8
|
|
|
31.20
|
|
|
10.8
|
|
|
0.6
|
|
|
Retirement Plans
|
|
Medical Plan
|
||||||||||||||||||||
|
For the three months ended September 30,
|
|
For the nine months ended September 30,
|
|
For the three months ended September 30,
|
|
For the nine months ended September 30,
|
||||||||||||||||
$ in millions
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Service cost
|
1.4
|
|
|
1.1
|
|
|
4.2
|
|
|
3.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Interest cost
|
4.4
|
|
|
5.4
|
|
|
13.2
|
|
|
15.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Expected return on plan assets
|
(5.7
|
)
|
|
(6.3
|
)
|
|
(17.1
|
)
|
|
(18.6
|
)
|
|
—
|
|
|
(0.1
|
)
|
|
—
|
|
|
(0.3
|
)
|
Amortization of prior service cost/(credit)
|
—
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
|
(2.8
|
)
|
|
(2.9
|
)
|
|
(7.7
|
)
|
|
(7.6
|
)
|
Amortization of net actuarial (gain)/loss
|
0.4
|
|
|
0.7
|
|
|
1.4
|
|
|
2.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net periodic benefit cost/(benefit)
|
0.5
|
|
|
0.9
|
|
|
1.7
|
|
|
3.0
|
|
|
(2.8
|
)
|
|
(3.0
|
)
|
|
(7.7
|
)
|
|
(7.9
|
)
|
|
For the three months ended September 30,
|
|
For the nine months ended September 30,
|
||||||||||||
In millions, except per share data
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Net income
|
|
$255.9
|
|
|
|
$241.3
|
|
|
|
$650.2
|
|
|
|
$769.3
|
|
Net (income)/loss attributable to noncontrolling interests in consolidated entities
|
(14.7
|
)
|
|
8.0
|
|
|
(22.5
|
)
|
|
(3.1
|
)
|
||||
Net income attributable to Invesco Ltd.
|
241.2
|
|
|
249.3
|
|
|
627.7
|
|
|
766.2
|
|
||||
Less: Allocation of earnings to restricted shares
|
(7.3
|
)
|
|
(6.3
|
)
|
|
(18.1
|
)
|
|
(19.6
|
)
|
||||
Net income attributable to common shareholders
|
|
$233.9
|
|
|
|
$243.0
|
|
|
|
$609.6
|
|
|
|
$746.6
|
|
|
|
|
|
|
|
|
|
||||||||
Invesco Ltd:
|
|
|
|
|
|
|
|
||||||||
Weighted average shares outstanding - basic
|
412.6
|
|
|
428.8
|
|
|
416.7
|
|
|
430.9
|
|
||||
Dilutive effect of non-participating share-based awards
|
0.3
|
|
|
0.3
|
|
|
0.3
|
|
|
0.4
|
|
||||
Weighted average shares outstanding - diluted
|
412.9
|
|
|
429.1
|
|
|
417.0
|
|
|
431.3
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Common shareholders:
|
|
|
|
|
|
|
|
||||||||
Weighted average shares outstanding - basic
|
412.6
|
|
|
428.8
|
|
|
416.7
|
|
|
430.9
|
|
||||
Less: Weighted average restricted shares
|
(12.4
|
)
|
|
(10.8
|
)
|
|
(12.0
|
)
|
|
(11.0
|
)
|
||||
Weighted average common shares outstanding - basic
|
400.2
|
|
|
418.0
|
|
|
404.7
|
|
|
419.9
|
|
||||
Dilutive effect of non-participating share-based awards
|
0.3
|
|
|
0.3
|
|
|
0.3
|
|
|
0.4
|
|
||||
Weighted average common shares outstanding - diluted
|
400.5
|
|
|
418.3
|
|
|
405.0
|
|
|
420.3
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Earnings per share:
|
|
|
|
|
|
|
|
||||||||
Basic earnings per share
|
|
$0.58
|
|
|
|
$0.58
|
|
|
|
$1.51
|
|
|
|
$1.78
|
|
Diluted earnings per share
|
|
$0.58
|
|
|
|
$0.58
|
|
|
|
$1.51
|
|
|
|
$1.78
|
|
$ in millions
|
|
December 31, 2015
|
|
Investments of CSIP
|
|
290.3
|
|
Cash and cash equivalents of CSIP
|
|
21.9
|
|
Accounts receivable and other assets of CSIP
|
|
6.9
|
|
Assets of CSIP
|
|
319.1
|
|
Other liabilities of CSIP
|
|
(4.4
|
)
|
Equity attributable to redeemable noncontrolling interests
|
|
(167.3
|
)
|
Equity attributable to nonredeemable noncontrolling interests
|
|
(40.8
|
)
|
Invesco's net interests in CSIP
|
|
106.6
|
|
|
As of December 31, 2015
|
|||||||||||||
$ in millions
|
Fair
Value
Measurements
|
|
Quoted Prices
in Active Markets
for Identical Assets
(Level 1)
|
|
Significant
Other
Observable
Inputs
(Level2)
|
|
Significant
Unobservable
Inputs
(Level 3)
|
|
Investments Measured at NAV as a practical expedient
|
|||||
Investments:
|
|
|
|
|
|
|
|
|
|
|||||
Fixed income securities
|
204.2
|
|
|
—
|
|
|
204.2
|
|
|
—
|
|
|
—
|
|
Equity securities
|
0.7
|
|
|
0.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Investments in fixed income funds
|
35.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
35.0
|
|
Investments in other private equity funds
|
50.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
50.4
|
|
Total investments at fair value
|
290.3
|
|
|
0.7
|
|
|
204.2
|
|
|
—
|
|
|
85.4
|
|
|
|
As of December 31, 2015
|
||||||||||
|
|
Fair Value
($ in millions)
|
|
Total Unfunded Commitments ($ in millions)
|
|
Weighted Average Remaining Term
(1)
|
|
Redemption Frequency
|
|
Redemption Notice Period
|
||
Fixed income funds
|
|
35.0
|
|
|
—
|
|
|
n/a
|
|
Monthly
|
|
10 days
|
Private equity fund of funds
|
|
50.4
|
|
|
33.2
|
|
|
7.9 years
|
|
n/a
(2)
|
|
n/a
(2)
|
|
As of
|
||||
$ in millions
|
September 30, 2016
|
|
December 31, 2015
|
||
Cash and cash equivalents of CIP
|
315.0
|
|
|
363.3
|
|
Accounts receivable and other assets of CIP
|
63.3
|
|
|
173.5
|
|
Investments of CIP
|
4,403.5
|
|
|
6,016.1
|
|
Less: Debt of CIP
|
(3,860.0
|
)
|
|
(5,437.0
|
)
|
Less: Other liabilities of CIP
|
(268.1
|
)
|
|
(273.7
|
)
|
Less: Retained earnings
|
19.2
|
|
|
20.1
|
|
Less: Accumulated other comprehensive income, net of tax
|
(18.3
|
)
|
|
(20.1
|
)
|
Less: Equity attributable to redeemable noncontrolling interests
|
(347.0
|
)
|
|
—
|
|
Less: Equity attributable to nonredeemable noncontrolling interests
|
(86.7
|
)
|
|
(768.8
|
)
|
Invesco's net interests in CIP
|
220.9
|
|
|
73.4
|
|
|
Three months ended September 30,
|
||||
$ in millions
|
2016
|
|
2015
|
||
Total operating revenues
|
(5.7
|
)
|
|
(9.5
|
)
|
Total operating expenses
|
7.4
|
|
|
8.7
|
|
Operating income
|
(13.1
|
)
|
|
(18.2
|
)
|
Equity in earnings of unconsolidated affiliates
|
(5.2
|
)
|
|
0.2
|
|
Interest and dividend income
|
—
|
|
|
(1.5
|
)
|
Other gains and losses, net
|
(2.8
|
)
|
|
—
|
|
Interest and dividend income of CIP
|
50.1
|
|
|
64.7
|
|
Interest expense of CIP
|
(28.8
|
)
|
|
(45.9
|
)
|
Other gains/(losses) of CIP, net
|
17.7
|
|
|
(17.3
|
)
|
Income before income taxes
|
17.9
|
|
|
(18.0
|
)
|
Income tax provision
|
—
|
|
|
—
|
|
Net income
|
17.9
|
|
|
(18.0
|
)
|
Net (income)/loss attributable to noncontrolling interests in consolidated entities
|
(14.7
|
)
|
|
4.8
|
|
Net income attributable to Invesco Ltd.
|
3.2
|
|
|
(13.2
|
)
|
|
Nine months ended September 30,
|
||||
$ in millions
|
2016
|
|
2015
|
||
Total operating revenues
|
(16.3
|
)
|
|
(29.2
|
)
|
Total operating expenses
|
17.1
|
|
|
22.4
|
|
Operating income
|
(33.4
|
)
|
|
(51.6
|
)
|
Equity in earnings of unconsolidated affiliates
|
(6.8
|
)
|
|
(1.0
|
)
|
Interest and dividend income
|
(0.2
|
)
|
|
(3.7
|
)
|
Other gains and losses, net
|
(3.7
|
)
|
|
(3.9
|
)
|
Interest and dividend income of CIP
|
140.7
|
|
|
190.0
|
|
Interest expense of CIP
|
(89.4
|
)
|
|
(138.3
|
)
|
Other gains/(losses) of CIP, net
|
18.1
|
|
|
(12.6
|
)
|
Income before income taxes
|
25.3
|
|
|
(21.1
|
)
|
Income tax provision
|
—
|
|
|
—
|
|
Net income
|
25.3
|
|
|
(21.1
|
)
|
Net (income)/loss attributable to noncontrolling interests in consolidated entities
|
(22.5
|
)
|
|
0.1
|
|
Net income attributable to Invesco Ltd.
|
2.8
|
|
|
(21.0
|
)
|
|
Transition date impact
|
||||
$ in millions
|
Consolidated
|
|
Deconsolidated
|
||
Cash and cash equivalents of CIP
|
33.8
|
|
|
163.8
|
|
Accounts receivable and other assets of CIP
|
105.4
|
|
|
68.8
|
|
Investments of CIP
|
319.3
|
|
|
2,938.0
|
|
Total assets
|
458.5
|
|
|
3,170.6
|
|
|
|
|
|
||
Debt of CIP
|
—
|
|
|
2,259.2
|
|
Other liabilities of CIP
|
102.4
|
|
|
110.4
|
|
Total liabilities
|
102.4
|
|
|
2,369.6
|
|
Total equity
|
356.1
|
|
|
801.0
|
|
Total liabilities and equity
|
458.5
|
|
|
3,170.6
|
|
|
For the nine months ended September 30, 2016
|
|
For the nine months ended September 30, 2015
|
|||||
$ in millions
|
VIEs
|
|
VIEs
|
|
VOEs
|
|||
Cash and cash equivalents of CIP
|
151.0
|
|
|
449.8
|
|
|
10.0
|
|
Accounts receivable and other assets of CIP
|
3.6
|
|
|
5.6
|
|
|
—
|
|
Investments of CIP
|
311.0
|
|
|
1,009.5
|
|
|
49.9
|
|
Total assets
|
465.6
|
|
|
1,464.9
|
|
|
59.9
|
|
|
|
|
|
|
|
|||
Debt of CIP
|
414.4
|
|
|
1,100.4
|
|
|
—
|
|
Other liabilities of CIP
|
17.4
|
|
|
364.5
|
|
|
—
|
|
Total liabilities
|
431.8
|
|
|
1,464.9
|
|
|
—
|
|
Total equity
|
33.8
|
|
|
—
|
|
|
59.9
|
|
Total liabilities and equity
|
465.6
|
|
|
1,464.9
|
|
|
59.9
|
|
|
For the nine months ended September 30, 2016
|
|
$ in millions
|
VIEs
|
|
Cash and cash equivalents of CIP
|
23.6
|
|
Accounts receivable and other assets of CIP
|
12.2
|
|
Investments of CIP
|
196.1
|
|
Total assets
|
231.9
|
|
|
|
|
Debt of CIP
|
—
|
|
Other liabilities of CIP
|
13.1
|
|
Total liabilities
|
13.1
|
|
Total equity
|
218.8
|
|
Total liabilities and equity
|
231.9
|
|
|
As of September 30, 2016
|
|||||||||||||
$ in millions
|
Fair Value Measurements
|
|
Quoted Prices in Active Markets for Identical Assets (Level 1)
|
|
Significant Other Observable Inputs (Level 2)
|
|
Significant Unobservable Inputs
(Level 3)
|
|
Investments Measured at NAV as a practical expedient
|
|||||
Assets:
|
|
|
|
|
|
|
|
|
|
|||||
Bank loans
|
3,832.5
|
|
|
—
|
|
|
3,832.5
|
|
|
—
|
|
|
—
|
|
Bonds
|
346.2
|
|
|
—
|
|
|
346.2
|
|
|
—
|
|
|
—
|
|
Equity securities
|
76.6
|
|
|
74.8
|
|
|
1.8
|
|
|
—
|
|
|
—
|
|
Equity and fixed income mutual funds
|
61.9
|
|
|
61.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Investments in other private equity funds
|
62.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
62.6
|
|
Real estate investments
|
23.7
|
|
|
—
|
|
|
—
|
|
|
23.7
|
|
|
—
|
|
Total assets at fair value
|
4,403.5
|
|
|
136.7
|
|
|
4,180.5
|
|
|
23.7
|
|
|
62.6
|
|
|
As of December 31, 2015
|
|||||||||||||
$ in millions
|
Fair Value Measurements
|
|
Quoted Prices in Active Markets for Identical Assets (Level 1)
|
|
Significant Other Observable Inputs (Level 2)
|
|
Significant Unobservable Inputs
(Level 3)
|
|
Investments Measured at NAV as a practical expedient
|
|||||
Assets:
|
|
|
|
|
|
|
|
|
|
|||||
CLO collateral assets:
|
|
|
|
|
|
|
|
|
|
|||||
Bank loans
|
5,179.6
|
|
|
—
|
|
|
5,179.6
|
|
|
—
|
|
|
—
|
|
Bonds
|
71.1
|
|
|
—
|
|
|
71.1
|
|
|
—
|
|
|
—
|
|
Equity securities
|
0.9
|
|
|
—
|
|
|
0.9
|
|
|
—
|
|
|
—
|
|
Private equity fund assets:
|
|
|
|
|
|
|
|
|
|
|||||
Equity securities
|
364.6
|
|
|
7.7
|
|
|
—
|
|
|
356.9
|
|
|
—
|
|
Debt Securities
|
31.7
|
|
|
—
|
|
|
—
|
|
|
31.7
|
|
|
—
|
|
Investments in other private equity funds
|
368.2
|
|
|
—
|
|
|
—
|
|
|
|
|
|
368.2
|
|
Total assets at fair value
|
6,016.1
|
|
|
7.7
|
|
|
5,251.6
|
|
|
388.6
|
|
|
368.2
|
|
|
Three months ended September 30, 2016
|
|
Nine months ended September 30, 2016
|
||||||||
$ in millions
|
Level 3 Assets
|
|
Level 3 Liabilities
|
|
Level 3 Assets
|
|
Level 3 Liabilities
|
||||
Beginning balance
|
23.9
|
|
|
—
|
|
|
388.6
|
|
|
—
|
|
Adjustment for adoption of ASU 2015-02
|
—
|
|
|
—
|
|
|
(388.6
|
)
|
|
—
|
|
Purchases
|
—
|
|
|
—
|
|
|
23.9
|
|
|
—
|
|
Sales
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Gains and losses included in the Condensed Consolidated Statements of Income*
|
(0.2
|
)
|
|
—
|
|
|
(0.2
|
)
|
|
—
|
|
Ending balance
|
23.7
|
|
|
—
|
|
|
23.7
|
|
|
—
|
|
|
Three months ended September 30, 2015
|
|
Nine months ended September 30, 2015
|
||||||||
$ in millions
|
Level 3 Assets
|
|
Level 3 Liabilities
|
|
Level 3 Assets
|
|
Level 3 Liabilities
|
||||
Beginning balance
|
308.1
|
|
|
—
|
|
|
363.9
|
|
|
(5,149.6
|
)
|
Adjustment for adoption of ASU 2014-13
|
—
|
|
|
—
|
|
|
—
|
|
|
5,149.6
|
|
Purchases
|
30.3
|
|
|
—
|
|
|
49.5
|
|
|
—
|
|
Sales
|
(0.4
|
)
|
|
—
|
|
|
(41.6
|
)
|
|
—
|
|
Gains and losses included in the Condensed Consolidated Statements of Income*
|
(5.1
|
)
|
|
—
|
|
|
(30.5
|
)
|
|
—
|
|
Transfers to Levels 1 and 2**
|
—
|
|
|
—
|
|
|
(8.4
|
)
|
|
—
|
|
Ending balance
|
332.9
|
|
|
—
|
|
|
332.9
|
|
|
—
|
|
*
|
Included in gains/(losses) of CIP, net in the Condensed Consolidated Statements of Income for the three and nine months ended
September 30, 2016
are
$0.2 million
in net unrealized losses attributable to investments still held at
September 30, 2016
by CIP. Included in gains/(losses) of CIP, net in the Condensed Consolidated Statements of Income for the
three and nine months ended
September 30, 2015
are
$5.1 million
and
$30.5 million
respectively,
in net unrealized losses attributable to investments still held at
September 30, 2015
by CIP.
|
**
|
During the
nine months ended
September 30, 2015
,
$7.8 million
of equity securities held by consolidated private equity funds were transferred from Level 3 to Level 2 due to the legal lock up requirements of of securities following the public offering of the underlying companies. During the nine months ended
September 30, 2015
,
$0.6 million
of equity securities held by consolidated private equity funds were transferred from level 3 to level 1 following the public offering of the underlying companies. For transfers due to public offerings, the company's policy is to use the fair value of the transferred security at the end of the period.
|
Assets and Liabilities *
|
|
Fair Value at
December 31, 2015
($ in millions)
|
|
Valuation Technique
|
|
Unobservable Inputs
|
|
Range
|
|
Weighted Average (by fair value)
|
Private Equity Funds --Equity Securities
|
|
320.0
|
|
Market Comparable
|
|
Revenue Multiple
|
|
NA
|
|
3.2x
|
|
|
|
|
|
|
Discount
|
|
25% - 50%
|
|
25.0%
|
|
|
|
|
|
|
Published valuation and/or broker quotes for similar types of assets
|
|
$25-101 million
|
|
$44.4 million
|
*
|
Excluded from the table above are certain equity and debt securities held by consolidated private equity funds valued using recent private market transactions (
December 31, 2015
:
$61.2 million
) and third party appraisals (
December 31, 2015
:
$7.3 million
).
|
|
|
September 30, 2016
|
|
December 31, 2015
|
||||||||||||
in millions, except term data
|
|
Fair Value
|
|
Total Unfunded Commitments
|
|
Weighted Average Remaining Term
(2)
|
|
Fair Value
|
|
Total Unfunded Commitments
|
|
Weighted Average Remaining Term
(2)
|
||||
Private equity funds
(1)
|
|
$62.6
|
|
$45.6
|
|
6.9 years
|
|
|
$368.2
|
|
|
|
$218.1
|
|
|
2.8 years
|
(1)
|
These investments are not subject to redemption; however, for certain funds, the investors may sell or transfer their interest, which may require approval by the general partner of the underlying funds.
|
(2)
|
These investments are expected to be returned through distributions as a result of liquidations of the funds' underlying assets over the weighted average periods indicated.
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||
$ in millions
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||
Affiliated operating revenues:
|
|
|
|
|
|
|
|
||||
Investment management fees
|
835.5
|
|
|
892.7
|
|
|
2,452.5
|
|
|
2,701.8
|
|
Service and distribution fees
|
213.1
|
|
|
214.8
|
|
|
613.7
|
|
|
646.4
|
|
Performance fees
|
2.9
|
|
|
7.4
|
|
|
19.7
|
|
|
19.7
|
|
Other
|
18.0
|
|
|
25.3
|
|
|
64.5
|
|
|
83.3
|
|
Total affiliated operating revenues
|
1,069.5
|
|
|
1,140.2
|
|
|
3,150.4
|
|
|
3,451.2
|
|
$ in millions
|
September 30, 2016
|
|
December 31, 2015
|
||
Affiliated asset balances:
|
|
|
|
||
Cash and cash equivalents
|
489.2
|
|
|
383.3
|
|
Unsettled fund receivables
|
325.9
|
|
|
166.7
|
|
Accounts receivable
|
308.0
|
|
|
317.7
|
|
Investments
|
823.9
|
|
|
982.7
|
|
Assets held for policyholders
|
7,387.5
|
|
|
6,051.2
|
|
Other assets
|
2.1
|
|
|
3.4
|
|
Total affiliated asset balances
|
9,336.6
|
|
|
7,905.0
|
|
|
|
|
|
||
Affiliated liability balances:
|
|
|
|
||
Accrued compensation and benefits
|
82.9
|
|
|
105.0
|
|
Accounts payable and accrued expenses
|
96.6
|
|
|
82.9
|
|
Unsettled fund payables
|
326.5
|
|
|
248.2
|
|
Total affiliated liability balances
|
506.0
|
|
|
436.1
|
|
|
Index expressed in currency
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||
Equity Index
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|||||
S&P 500
|
U.S. Dollar
|
3.3
|
%
|
|
(6.9
|
)%
|
|
6.1
|
%
|
|
(6.7
|
)%
|
FTSE 100
|
British Pound
|
6.1
|
%
|
|
(7.0
|
)%
|
|
10.5
|
%
|
|
(7.7
|
)%
|
FTSE 100
|
U.S. Dollar
|
3.7
|
%
|
|
(10.6
|
)%
|
|
(2.7
|
)%
|
|
(10.3
|
)%
|
Nikkei 225
|
Japanese Yen
|
5.6
|
%
|
|
(14.1
|
)%
|
|
(13.6
|
)%
|
|
(0.4
|
)%
|
Nikkei 225
|
U.S. Dollar
|
7.4
|
%
|
|
(12.3
|
)%
|
|
2.8
|
%
|
|
(0.5
|
)%
|
MSCI Emerging Markets
|
U.S. Dollar
|
8.3
|
%
|
|
(18.5
|
)%
|
|
13.8
|
%
|
|
(17.2
|
)%
|
Bond Index
|
|
|
|
|
|
|
|
|
||||
Barclays U.S. Aggregate Bond
|
U.S. Dollar
|
0.5
|
%
|
|
1.2
|
%
|
|
5.8
|
%
|
|
1.1
|
%
|
•
|
Powershares celebrated the tenth anniversary of joining Invesco. Over the ten year period, Powershares' AUM has risen from $3.5 billion (38 products) to $110 billion (136 products).
|
•
|
In an analysis of the mainland European equities sector, Citywire Germany named Invesco as one of three fund managers who achieved an increase in value of more than 100% over the past 10 years.
|
•
|
Invesco's Asia Pacific region continued to deliver strong long-term performance with, as an example, the US onshore Invesco Greater China Fund being ranked the best performing fund among 47 US listed global funds. Similarly, its sister Luxembourg-domiciled Greater China Equity Fund ranked first quartile across YTD, one-, three-, five- and ten-year periods based on Morningstar's offshore Greater China Equity peer group.
|
•
|
Results of Operations (
three and nine months ended
September 30, 2016
compared to
three and nine months ended
September 30, 2015
);
|
•
|
Schedule of Non-GAAP Information;
|
•
|
Balance Sheet Discussion; and
|
•
|
Liquidity and Capital Resources.
|
$ in millions, other than per share amounts, operating margins, ratios and AUM
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||
U.S. GAAP Financial Measures Summary
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||
Operating revenues
|
1,201.6
|
|
|
1,273.5
|
|
|
3,539.7
|
|
|
3,883.2
|
|
Operating income
|
306.3
|
|
|
352.7
|
|
|
882.2
|
|
|
1,054.8
|
|
Operating margin
|
25.5
|
%
|
|
27.7
|
%
|
|
24.9
|
%
|
|
27.2
|
%
|
Net income attributable to Invesco Ltd.
|
241.2
|
|
|
249.3
|
|
|
627.7
|
|
|
766.2
|
|
Diluted EPS
|
0.58
|
|
|
0.58
|
|
|
1.51
|
|
|
1.78
|
|
|
|
|
|
|
|
|
|
||||
Non-GAAP Financial Measures Summary
|
|
|
|
|
|
|
|
||||
Net revenues
(1)
|
854.7
|
|
|
903.0
|
|
|
2,529.4
|
|
|
2,757.1
|
|
Adjusted operating income
(2)
|
339.3
|
|
|
373.4
|
|
|
976.8
|
|
|
1,138.0
|
|
Adjusted operating margin
(2)
|
39.7
|
%
|
|
41.4
|
%
|
|
38.6
|
%
|
|
41.3
|
%
|
Adjusted net income attributable to Invesco Ltd.
(3)
|
246.2
|
|
|
261.4
|
|
|
684.0
|
|
|
804.9
|
|
Adjusted diluted EPS
(3)
|
0.60
|
|
|
0.61
|
|
|
1.64
|
|
|
1.87
|
|
|
|
|
|
|
|
|
|
||||
Assets Under Management
|
|
|
|
|
|
|
|
||||
Ending AUM (billions)
|
820.2
|
|
|
755.8
|
|
|
820.2
|
|
|
755.8
|
|
Average AUM (billions)
|
814.1
|
|
|
788.9
|
|
|
782.0
|
|
|
798.4
|
|
(1)
|
Net revenues is a non-GAAP financial measure. Net revenues are operating revenues plus our proportional share of the net revenues of our joint venture investments, less third-party distribution, service and advisory expenses, plus management and performance fees earned from CIP, less other revenue recorded by CIP. See "Schedule of Non-GAAP Information," for the reconciliation of operating revenues to net revenues.
|
(2)
|
Adjusted operating income and adjusted operating margin are non-GAAP financial measures. Adjusted operating margin is adjusted operating income divided by net revenues. Adjusted operating income includes operating income plus our proportional share of the net operating income of our joint venture investments, the operating income impact of the consolidation of investment products, business combination-related adjustments, compensation expense related to market valuation changes in deferred compensation plans, and other reconciling items. See "Schedule of Non-GAAP Information," for the reconciliation of operating income to adjusted operating income.
|
(3)
|
Adjusted net income attributable to Invesco Ltd. and adjusted diluted EPS are non-GAAP financial measures. Adjusted net income attributable to Invesco Ltd. is net income attributable to Invesco Ltd. adjusted to exclude the impact of CIP on net income attributable to Invesco Ltd., add back business combination-related adjustments, the net income impact of deferred compensation plans and other reconciling items. Adjustments made to net income attributable to Invesco Ltd. are tax-effected in arriving at adjusted net income attributable to Invesco Ltd. By calculation, adjusted diluted EPS is adjusted net income attributable to Invesco Ltd. divided by the weighted average number of shares outstanding (for diluted EPS). See "Schedule of Non-GAAP Information," for the reconciliation of net income attributable to Invesco Ltd. to adjusted net income attributable to Invesco Ltd.
|
|
Benchmark Comparison
|
|
Peer Group Comparison
|
||||||||||
|
% of AUM Ahead of Benchmark
|
|
% of AUM In Top Half of Peer Group
|
||||||||||
|
1yr
|
3yr
|
5yr
|
|
1yr
|
3yr
|
5yr
|
||||||
Equities
|
|
|
|
|
|
|
|
||||||
U.S. Core
|
5
|
%
|
0
|
%
|
4
|
%
|
|
5
|
%
|
0
|
%
|
5
|
%
|
U.S. Growth
|
54
|
%
|
37
|
%
|
37
|
%
|
|
82
|
%
|
96
|
%
|
36
|
%
|
U.S. Value
|
0
|
%
|
36
|
%
|
37
|
%
|
|
22
|
%
|
54
|
%
|
86
|
%
|
Sector Funds
|
11
|
%
|
2
|
%
|
56
|
%
|
|
11
|
%
|
7
|
%
|
16
|
%
|
U.K.
|
3
|
%
|
93
|
%
|
100
|
%
|
|
3
|
%
|
92
|
%
|
100
|
%
|
Canadian
|
13
|
%
|
21
|
%
|
48
|
%
|
|
13
|
%
|
21
|
%
|
46
|
%
|
Asian
|
82
|
%
|
88
|
%
|
91
|
%
|
|
76
|
%
|
69
|
%
|
76
|
%
|
European
|
48
|
%
|
78
|
%
|
100
|
%
|
|
54
|
%
|
74
|
%
|
77
|
%
|
Global
|
43
|
%
|
53
|
%
|
56
|
%
|
|
58
|
%
|
66
|
%
|
80
|
%
|
Global Ex U.S. and Emerging Markets
|
21
|
%
|
98
|
%
|
99
|
%
|
|
93
|
%
|
89
|
%
|
98
|
%
|
Fixed Income
|
|
|
|
|
|
|
|
||||||
Money Market
|
98
|
%
|
64
|
%
|
64
|
%
|
|
98
|
%
|
98
|
%
|
98
|
%
|
U.S. Fixed Income
|
90
|
%
|
90
|
%
|
95
|
%
|
|
82
|
%
|
86
|
%
|
85
|
%
|
Global Fixed Income
|
44
|
%
|
45
|
%
|
94
|
%
|
|
15
|
%
|
15
|
%
|
89
|
%
|
Stable Value
|
100
|
%
|
100
|
%
|
100
|
%
|
|
100
|
%
|
100
|
%
|
100
|
%
|
Other
|
|
|
|
|
|
|
|
||||||
Alternatives
|
62
|
%
|
48
|
%
|
53
|
%
|
|
64
|
%
|
11
|
%
|
30
|
%
|
Balanced
|
56
|
%
|
56
|
%
|
44
|
%
|
|
95
|
%
|
89
|
%
|
92
|
%
|
(1)
|
AUM measured in the one-, three-, and five-year peer group rankings represents
57%
,
55%
, and
55%
of total Invesco AUM, respectively, and AUM measured versus benchmark on a one-, three-, and five-year basis represents
71%
,
68%
, and
65%
of total Invesco AUM, respectively, as of
September 30, 2016
. Peer group rankings are sourced from a widely-used third party ranking agency in each fund's market (Lipper, Morningstar, IA, Russell, Mercer, eVestment Alliance, SITCA, Value Research) and are asset-weighted in USD. Rankings are as of prior quarter-end for most institutional products and preceding month-end for Australian retail funds due to their late release by third parties. Rankings for the most representative fund in each Global Investment Performance Standard (GIPS) composite are applied to all products within each GIPS composite. Excludes passive products, closed-end funds, private equity limited partnerships, non-discretionary direct real estate, unit investment trusts, fund-of-funds with component funds managed by Invesco, stable value building block funds, and CDOs. Certain funds and products were excluded from the analysis because of limited benchmark or peer group data. Had these been available, results may have been different. These results are preliminary and subject to revision. Performance assumes the reinvestment of dividends. Past performance is not indicative of future results and may not reflect an investor's experience.
|
Spot Foreign Exchange Rates
|
September 30, 2016
|
|
June 30, 2016
|
|
December 31, 2015
|
|
September 30, 2015
|
|
June 30, 2015
|
|
December 31, 2014
|
||||||
Pound Sterling ($ per £)
|
1.299
|
|
|
1.337
|
|
|
1.474
|
|
|
1.515
|
|
|
1.572
|
|
|
1.559
|
|
Canadian Dollar (CAD per $)
|
1.314
|
|
|
1.300
|
|
|
1.389
|
|
|
1.341
|
|
|
1.247
|
|
|
1.158
|
|
Japan (¥ per $)
|
101.275
|
|
|
102.533
|
|
|
120.275
|
|
|
119.775
|
|
|
122.145
|
|
|
119.880
|
|
Euro ($ per Euro)
|
1.124
|
|
|
1.111
|
|
|
1.086
|
|
|
1.116
|
|
|
1.115
|
|
|
1.210
|
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||
Average Foreign Exchange Rates
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||
Pound Sterling ($ per £)
|
1.314
|
|
|
1.549
|
|
|
1.393
|
|
|
1.532
|
|
Canadian Dollar (CAD per $)
|
1.304
|
|
|
1.307
|
|
|
1.321
|
|
|
1.258
|
|
Japan (¥ per $)
|
102.380
|
|
|
122.187
|
|
|
108.328
|
|
|
120.875
|
|
Euro ($ per Euro)
|
1.116
|
|
|
1.112
|
|
|
1.116
|
|
|
1.115
|
|
|
For the three months ended September 30,
|
||||||||||||||||
|
2016
|
|
2015
|
||||||||||||||
$ in billions
|
Total AUM
|
|
Active
|
|
Passive
|
|
Total AUM
|
|
Active
|
|
Passive
|
||||||
December 31
|
779.6
|
|
|
646.1
|
|
|
133.5
|
|
|
803.6
|
|
|
662.0
|
|
|
141.6
|
|
Long-term inflows
|
51.7
|
|
|
39.9
|
|
|
11.8
|
|
|
43.5
|
|
|
36.7
|
|
|
6.8
|
|
Long-term outflows
|
(39.5
|
)
|
|
(31.6
|
)
|
|
(7.9
|
)
|
|
(47.4
|
)
|
|
(38.3
|
)
|
|
(9.1
|
)
|
Long-term net flows
|
12.2
|
|
|
8.3
|
|
|
3.9
|
|
|
(3.9
|
)
|
|
(1.6
|
)
|
|
(2.3
|
)
|
Net flows in Invesco PowerShares QQQ fund
|
1.1
|
|
|
—
|
|
|
1.1
|
|
|
(0.9
|
)
|
|
—
|
|
|
(0.9
|
)
|
Net flows in institutional money market funds
|
5.9
|
|
|
6.0
|
|
|
(0.1
|
)
|
|
(1.5
|
)
|
|
(1.6
|
)
|
|
0.1
|
|
Total net flows
|
19.2
|
|
|
14.3
|
|
|
4.9
|
|
|
(6.3
|
)
|
|
(3.2
|
)
|
|
(3.1
|
)
|
Market gains and losses/reinvestment
|
23.6
|
|
|
18.7
|
|
|
4.9
|
|
|
(35.6
|
)
|
|
(28.8
|
)
|
|
(6.8
|
)
|
Acquisitions/dispositions, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Foreign currency translation
|
(2.2
|
)
|
|
(2.2
|
)
|
|
—
|
|
|
(5.9
|
)
|
|
(5.9
|
)
|
|
—
|
|
September 30
|
820.2
|
|
|
676.9
|
|
|
143.3
|
|
|
755.8
|
|
|
624.1
|
|
|
131.7
|
|
Average AUM
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Average long-term AUM
|
705.9
|
|
|
603.7
|
|
|
102.2
|
|
|
685.5
|
|
|
585.9
|
|
|
99.6
|
|
Average AUM
|
814.1
|
|
|
673.1
|
|
|
141.0
|
|
|
788.9
|
|
|
650.5
|
|
|
138.4
|
|
Revenue yield
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Gross revenue yield on AUM
(1)
|
59.8
|
|
|
69.3
|
|
|
15.3
|
|
|
65.1
|
|
|
75.8
|
|
|
14.9
|
|
Gross revenue yield on AUM before performance fees
(1)
|
59.6
|
|
|
69.1
|
|
|
15.3
|
|
|
64.3
|
|
|
74.9
|
|
|
14.9
|
|
Net revenue yield on AUM
(2)
|
42.0
|
|
|
47.6
|
|
|
15.3
|
|
|
45.8
|
|
|
52.4
|
|
|
14.9
|
|
Net revenue yield on AUM before performance fees
(2)
|
41.8
|
|
|
47.4
|
|
|
15.3
|
|
|
44.9
|
|
|
51.3
|
|
|
14.9
|
|
|
For the nine months ended September 30,
|
||||||||||||||||
|
2016
|
|
2015
|
||||||||||||||
$ in billions
|
Total AUM
|
|
Active
|
|
Passive
|
|
Total AUM
|
|
Active
|
|
Passive
|
||||||
December 31
|
775.6
|
|
|
636.5
|
|
|
139.1
|
|
|
792.4
|
|
|
651.0
|
|
|
141.4
|
|
Long-term inflows
|
140.3
|
|
|
106.3
|
|
|
34.0
|
|
|
146.1
|
|
|
120.4
|
|
|
25.7
|
|
Long-term outflows
|
(124.9
|
)
|
|
(97.5
|
)
|
|
(27.4
|
)
|
|
(133.8
|
)
|
|
(109.8
|
)
|
|
(24.0
|
)
|
Long-term net flows
|
15.4
|
|
|
8.8
|
|
|
6.6
|
|
|
12.3
|
|
|
10.6
|
|
|
1.7
|
|
Net flows in Invesco PowerShares QQQ fund
|
(5.3
|
)
|
|
—
|
|
|
(5.3
|
)
|
|
(3.8
|
)
|
|
—
|
|
|
(3.8
|
)
|
Net flows in institutional money market funds
|
11.7
|
|
|
12.0
|
|
|
(0.3
|
)
|
|
(10.1
|
)
|
|
(10.2
|
)
|
|
0.1
|
|
Total net flows
|
21.8
|
|
|
20.8
|
|
|
1.0
|
|
|
(1.6
|
)
|
|
0.4
|
|
|
(2.0
|
)
|
Market gains and losses/reinvestment
|
31.3
|
|
|
25.1
|
|
|
6.2
|
|
|
(26.0
|
)
|
|
(19.0
|
)
|
|
(7.0
|
)
|
Acquisitions/dispositions, net
|
(1.2
|
)
|
|
2.0
|
|
|
(3.2
|
)
|
|
(0.7
|
)
|
|
—
|
|
|
(0.7
|
)
|
Foreign currency translation
|
(7.3
|
)
|
|
(7.5
|
)
|
|
0.2
|
|
|
(8.3
|
)
|
|
(8.3
|
)
|
|
—
|
|
September 30
|
820.2
|
|
|
676.9
|
|
|
143.3
|
|
|
755.8
|
|
|
624.1
|
|
|
131.7
|
|
Average AUM
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Average long-term AUM
|
678.9
|
|
|
583.3
|
|
|
95.6
|
|
|
692.2
|
|
|
589.6
|
|
|
102.6
|
|
Average AUM
|
782.0
|
|
|
648.8
|
|
|
133.2
|
|
|
798.4
|
|
|
656.7
|
|
|
141.7
|
|
Revenue yield
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Gross revenue yield on AUM
(1)
|
61.0
|
|
|
70.7
|
|
|
14.6
|
|
|
65.3
|
|
|
76.4
|
|
|
14.5
|
|
Gross revenue yield on AUM before performance fees
(1)
|
60.6
|
|
|
70.1
|
|
|
14.6
|
|
|
64.2
|
|
|
75.0
|
|
|
14.5
|
|
Net revenue yield on AUM
(2)
|
43.1
|
|
|
49.0
|
|
|
14.6
|
|
|
46.0
|
|
|
52.9
|
|
|
14.5
|
|
Net revenue yield on AUM before performance fees
(2)
|
42.6
|
|
|
48.4
|
|
|
14.6
|
|
|
44.7
|
|
|
51.2
|
|
|
14.5
|
|
(1)
|
Gross revenue yield on AUM is equal to annualized total operating revenues divided by average AUM, excluding joint venture (JV) AUM. Our share of the average AUM in the
three months ended
September 30, 2016
for our JVs in China was
$10.4 billion
(
three months ended
September 30, 2015
:
$6.0 billion
). Our share of the average AUM in the
nine months ended
September 30, 2016
for our JVs in China was
$8.9 billion
(
nine months ended
September 30, 2015
:
$6.0 billion
). It is appropriate to exclude the average AUM of our JVs for purposes of computing gross revenue yield on AUM because the revenues resulting from these AUM are not presented in our operating revenues. Under U.S. GAAP, our share of the net income of the JVs is recorded as equity in earnings of unconsolidated affiliates on our Condensed Consolidated Statements of Income. Additionally, the numerator of the gross revenue yield measure, operating revenues, excludes the management fees earned from CIP; however, the denominator of the measure includes the AUM of these investment products. Therefore, the gross revenue yield measure is not considered representative of the company's true effective fee rate from AUM.
|
(2)
|
Net revenue yield on AUM is equal to annualized net revenues divided by average AUM. See “Schedule of Non-GAAP Information” for a reconciliation of operating revenues to net revenues.
|
$ in billions
|
Total
|
|
Retail
|
|
Institutional
|
|||
June 30, 2016
|
779.6
|
|
|
504.3
|
|
|
275.3
|
|
Long-term inflows
|
51.7
|
|
|
40.3
|
|
|
11.4
|
|
Long-term outflows
|
(39.5
|
)
|
|
(31.5
|
)
|
|
(8.0
|
)
|
Long-term net flows
|
12.2
|
|
|
8.8
|
|
|
3.4
|
|
Net flows in Invesco PowerShares QQQ fund
|
1.1
|
|
|
1.1
|
|
|
—
|
|
Net flows in institutional money market funds
|
5.9
|
|
|
—
|
|
|
5.9
|
|
Total net flows
|
19.2
|
|
|
9.9
|
|
|
9.3
|
|
Market gains and losses/reinvestment
|
23.6
|
|
|
20.2
|
|
|
3.4
|
|
Acquisitions/dispositions, net
|
—
|
|
|
—
|
|
|
—
|
|
Foreign currency translation
|
(2.2
|
)
|
|
(2.3
|
)
|
|
0.1
|
|
September 30, 2016
|
820.2
|
|
|
532.1
|
|
|
288.1
|
|
|
|
|
|
|
|
|||
June 30, 2015
|
803.6
|
|
|
541.3
|
|
|
262.3
|
|
Long-term inflows
|
43.5
|
|
|
32.0
|
|
|
11.5
|
|
Long-term outflows
|
(47.4
|
)
|
|
(36.2
|
)
|
|
(11.2
|
)
|
Long-term net flows
|
(3.9
|
)
|
|
(4.2
|
)
|
|
0.3
|
|
Net flows in Invesco PowerShares QQQ fund
|
(0.9
|
)
|
|
(0.9
|
)
|
|
—
|
|
Net flows in institutional money market funds
|
(1.5
|
)
|
|
—
|
|
|
(1.5
|
)
|
Total net flows
|
(6.3
|
)
|
|
(5.1
|
)
|
|
(1.2
|
)
|
Market gains and losses/reinvestment
|
(35.6
|
)
|
|
(31.4
|
)
|
|
(4.2
|
)
|
Acquisitions/dispositions, net
|
—
|
|
|
—
|
|
|
—
|
|
Foreign currency translation
|
(5.9
|
)
|
|
(5.4
|
)
|
|
(0.5
|
)
|
September 30, 2015
|
755.8
|
|
|
499.4
|
|
|
256.4
|
|
$ in billions
|
Total
|
|
Retail
|
|
Institutional
|
|||
December 31, 2015
|
775.6
|
|
|
514.8
|
|
|
260.8
|
|
Long-term inflows
|
140.3
|
|
|
108.2
|
|
|
32.1
|
|
Long-term outflows
|
(124.9
|
)
|
|
(102.6
|
)
|
|
(22.3
|
)
|
Long-term net flows
|
15.4
|
|
|
5.6
|
|
|
9.8
|
|
Net flows in Invesco PowerShares QQQ fund
|
(5.3
|
)
|
|
(5.3
|
)
|
|
—
|
|
Net flows in institutional money market funds
|
11.7
|
|
|
—
|
|
|
11.7
|
|
Total net flows
|
21.8
|
|
|
0.3
|
|
|
21.5
|
|
Market gains and losses/reinvestment
|
31.3
|
|
|
24.9
|
|
|
6.4
|
|
Acquisitions/dispositions, net
|
(1.2
|
)
|
|
0.4
|
|
|
(1.6
|
)
|
Foreign currency translation
|
(7.3
|
)
|
|
(8.3
|
)
|
|
1.0
|
|
September 30, 2016
|
820.2
|
|
|
532.1
|
|
|
288.1
|
|
|
|
|
|
|
|
|||
December 31, 2014
|
792.4
|
|
|
532.5
|
|
|
259.9
|
|
Long-term inflows
|
146.1
|
|
|
106.5
|
|
|
39.6
|
|
Long-term outflows
|
(133.8
|
)
|
|
(103.7
|
)
|
|
(30.1
|
)
|
Long-term net flows
|
12.3
|
|
|
2.8
|
|
|
9.5
|
|
Net flows in Invesco PowerShares QQQ fund
|
(3.8
|
)
|
|
(3.8
|
)
|
|
—
|
|
Net flows in institutional money market funds
|
(10.1
|
)
|
|
—
|
|
|
(10.1
|
)
|
Total net flows
|
(1.6
|
)
|
|
(1.0
|
)
|
|
(0.6
|
)
|
Market gains and losses/reinvestment
|
(26.0
|
)
|
|
(25.0
|
)
|
|
(1.0
|
)
|
Acquisitions/dispositions, net
|
(0.7
|
)
|
|
(0.7
|
)
|
|
—
|
|
Foreign currency translation
|
(8.3
|
)
|
|
(6.4
|
)
|
|
(1.9
|
)
|
September 30, 2015
|
755.8
|
|
|
499.4
|
|
|
256.4
|
|
$ in billions
|
Total
|
|
Retail
|
|
Institutional
|
|||
June 30, 2016
|
133.5
|
|
|
117.0
|
|
|
16.5
|
|
Long-term inflows
|
11.8
|
|
|
10.9
|
|
|
0.9
|
|
Long-term outflows
|
(7.9
|
)
|
|
(7.7
|
)
|
|
(0.2
|
)
|
Long-term net flows
|
3.9
|
|
|
3.2
|
|
|
0.7
|
|
Net flows in Invesco PowerShares QQQ fund
|
1.1
|
|
|
1.1
|
|
|
—
|
|
Net flows in institutional money market funds
|
(0.1
|
)
|
|
—
|
|
|
(0.1
|
)
|
Total net flows
|
4.9
|
|
|
4.3
|
|
|
0.6
|
|
Market gains and losses/reinvestment
|
4.9
|
|
|
4.9
|
|
|
—
|
|
Acquisitions/dispositions, net
|
—
|
|
|
—
|
|
|
—
|
|
Foreign currency translation
|
—
|
|
|
—
|
|
|
—
|
|
September 30, 2016
|
143.3
|
|
|
126.2
|
|
|
17.1
|
|
|
|
|
|
|
|
|||
June 30, 2015
|
141.6
|
|
|
119.7
|
|
|
21.9
|
|
Long-term inflows
|
6.8
|
|
|
6.0
|
|
|
0.8
|
|
Long-term outflows
|
(9.1
|
)
|
|
(7.8
|
)
|
|
(1.3
|
)
|
Long-term net flows
|
(2.3
|
)
|
|
(1.8
|
)
|
|
(0.5
|
)
|
Net flows in Invesco PowerShares QQQ fund
|
(0.9
|
)
|
|
(0.9
|
)
|
|
—
|
|
Net flows in institutional money market funds
|
0.1
|
|
|
—
|
|
|
0.1
|
|
Total net flows
|
(3.1
|
)
|
|
(2.7
|
)
|
|
(0.4
|
)
|
Market gains and losses/reinvestment
|
(6.8
|
)
|
|
(6.4
|
)
|
|
(0.4
|
)
|
Acquisitions/dispositions, net
|
—
|
|
|
—
|
|
|
—
|
|
Foreign currency translation
|
—
|
|
|
—
|
|
|
—
|
|
September 30, 2015
|
131.7
|
|
|
110.6
|
|
|
21.1
|
|
$ in billions
|
Total
|
|
Retail
|
|
Institutional
|
|||
December 31, 2015
|
139.1
|
|
|
118.7
|
|
|
20.4
|
|
Long-term inflows
|
34.0
|
|
|
32.1
|
|
|
1.9
|
|
Long-term outflows
|
(27.4
|
)
|
|
(25.6
|
)
|
|
(1.8
|
)
|
Long-term net flows
|
6.6
|
|
|
6.5
|
|
|
0.1
|
|
Net flows in Invesco PowerShares QQQ fund
|
(5.3
|
)
|
|
(5.3
|
)
|
|
—
|
|
Net flows in institutional money market funds
|
(0.3
|
)
|
|
—
|
|
|
(0.3
|
)
|
Total net flows
|
1.0
|
|
|
1.2
|
|
|
(0.2
|
)
|
Market gains and losses/reinvestment
|
6.2
|
|
|
6.3
|
|
|
(0.1
|
)
|
Acquisitions/dispositions, net
|
(3.2
|
)
|
|
—
|
|
|
(3.2
|
)
|
Foreign currency translation
|
0.2
|
|
|
—
|
|
|
0.2
|
|
September 30, 2016
|
143.3
|
|
|
126.2
|
|
|
17.1
|
|
|
|
|
|
|
|
|||
December 31, 2014
|
141.4
|
|
|
119.7
|
|
|
21.7
|
|
Long-term inflows
|
25.7
|
|
|
22.5
|
|
|
3.2
|
|
Long-term outflows
|
(24.0
|
)
|
|
(21.2
|
)
|
|
(2.8
|
)
|
Long-term net flows
|
1.7
|
|
|
1.3
|
|
|
0.4
|
|
Net flows in Invesco PowerShares QQQ fund
|
(3.8
|
)
|
|
(3.8
|
)
|
|
—
|
|
Net flows in institutional money market funds
|
0.1
|
|
|
—
|
|
|
0.1
|
|
Total net flows
|
(2.0
|
)
|
|
(2.5
|
)
|
|
0.5
|
|
Market gains and losses/reinvestment
|
(7.0
|
)
|
|
(5.9
|
)
|
|
(1.1
|
)
|
Acquisitions/dispositions, net
|
(0.7
|
)
|
|
(0.7
|
)
|
|
—
|
|
September 30, 2015
|
131.7
|
|
|
110.6
|
|
|
21.1
|
|
$ in billions
|
Total
|
|
Equity
|
|
Fixed Income
|
|
Balanced
|
|
Money Market
|
|
Alternatives
(3)
|
||||||
June 30, 2016
|
779.6
|
|
|
348.8
|
|
|
196.3
|
|
|
47.4
|
|
|
71.1
|
|
|
116.0
|
|
Long-term inflows
|
51.7
|
|
|
19.9
|
|
|
17.1
|
|
|
2.6
|
|
|
1.2
|
|
|
10.9
|
|
Long-term outflows
|
(39.5
|
)
|
|
(23.1
|
)
|
|
(7.9
|
)
|
|
(2.4
|
)
|
|
(1.1
|
)
|
|
(5.0
|
)
|
Long-term net flows
|
12.2
|
|
|
(3.2
|
)
|
|
9.2
|
|
|
0.2
|
|
|
0.1
|
|
|
5.9
|
|
Net flows in Invesco PowerShares QQQ fund
|
1.1
|
|
|
1.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net flows in institutional money market funds
|
5.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5.9
|
|
|
—
|
|
Total net flows
|
19.2
|
|
|
(2.1
|
)
|
|
9.2
|
|
|
0.2
|
|
|
6.0
|
|
|
5.9
|
|
Market gains and losses/reinvestment
|
23.6
|
|
|
20.0
|
|
|
1.9
|
|
|
1.5
|
|
|
0.1
|
|
|
0.1
|
|
Acquisitions/dispositions, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Foreign currency translation
|
(2.2
|
)
|
|
(1.4
|
)
|
|
(0.4
|
)
|
|
(0.2
|
)
|
|
—
|
|
|
(0.2
|
)
|
September 30, 2016
|
820.2
|
|
|
365.3
|
|
|
207.0
|
|
|
48.9
|
|
|
77.2
|
|
|
121.8
|
|
Average AUM
|
814.1
|
|
|
364.4
|
|
|
203.8
|
|
|
48.4
|
|
|
78.1
|
|
|
119.4
|
|
% of total average AUM
|
100.0
|
%
|
|
44.8
|
%
|
|
25.0
|
%
|
|
5.9
|
%
|
|
9.6
|
%
|
|
14.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
June 30, 2015
|
803.6
|
|
|
394.7
|
|
|
187.5
|
|
|
53.6
|
|
|
67.9
|
|
|
99.9
|
|
Long-term inflows
|
43.5
|
|
|
19.6
|
|
|
10.5
|
|
|
3.2
|
|
|
1.3
|
|
|
8.9
|
|
Long-term outflows
|
(47.4
|
)
|
|
(25.6
|
)
|
|
(11.3
|
)
|
|
(4.3
|
)
|
|
(1.0
|
)
|
|
(5.2
|
)
|
Long-term net flows
|
(3.9
|
)
|
|
(6.0
|
)
|
|
(0.8
|
)
|
|
(1.1
|
)
|
|
0.3
|
|
|
3.7
|
|
Net flows in Invesco PowerShares QQQ fund
|
(0.9
|
)
|
|
(0.9
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net flows in institutional money market funds
|
(1.5
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1.5
|
)
|
|
—
|
|
Total net flows
|
(6.3
|
)
|
|
(6.9
|
)
|
|
(0.8
|
)
|
|
(1.1
|
)
|
|
(1.2
|
)
|
|
3.7
|
|
Market gains and losses/reinvestment
|
(35.6
|
)
|
|
(31.6
|
)
|
|
(0.4
|
)
|
|
(1.4
|
)
|
|
0.1
|
|
|
(2.3
|
)
|
Acquisitions/dispositions, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Foreign currency translation
|
(5.9
|
)
|
|
(3.8
|
)
|
|
(0.8
|
)
|
|
(1.0
|
)
|
|
—
|
|
|
(0.3
|
)
|
September 30, 2015
|
755.8
|
|
|
352.4
|
|
|
185.5
|
|
|
50.1
|
|
|
66.8
|
|
|
101.0
|
|
Average AUM
|
788.9
|
|
|
379.7
|
|
|
187.1
|
|
|
52.4
|
|
|
69.6
|
|
|
100.1
|
|
% of total average AUM
|
100.0
|
%
|
|
48.1
|
%
|
|
23.7
|
%
|
|
6.6
|
%
|
|
8.8
|
%
|
|
12.7
|
%
|
$ in billions
|
Total
|
|
Equity
|
|
Fixed Income
|
|
Balanced
|
|
Money Market
|
|
Alternatives
(3)
|
||||||
December 31, 2015
|
775.6
|
|
|
370.9
|
|
|
187.9
|
|
|
48.1
|
|
|
64.6
|
|
|
104.1
|
|
Long-term inflows
|
140.3
|
|
|
60.8
|
|
|
38.8
|
|
|
7.8
|
|
|
3.2
|
|
|
29.7
|
|
Long-term outflows
|
(124.9
|
)
|
|
(74.7
|
)
|
|
(24.4
|
)
|
|
(9.0
|
)
|
|
(2.9
|
)
|
|
(13.9
|
)
|
Long-term net flows
|
15.4
|
|
|
(13.9
|
)
|
|
14.4
|
|
|
(1.2
|
)
|
|
0.3
|
|
|
15.8
|
|
Net flows in Invesco PowerShares QQQ fund
|
(5.3
|
)
|
|
(5.3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net flows in institutional money market funds
|
11.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11.7
|
|
|
—
|
|
Total net flows
|
21.8
|
|
|
(19.2
|
)
|
|
14.4
|
|
|
(1.2
|
)
|
|
12.0
|
|
|
15.8
|
|
Market gains and losses/reinvestment
|
31.3
|
|
|
18.0
|
|
|
7.3
|
|
|
2.5
|
|
|
0.3
|
|
|
3.2
|
|
Acquisitions/dispositions, net
|
(1.2
|
)
|
|
0.4
|
|
|
(1.1
|
)
|
|
—
|
|
|
0.4
|
|
|
(0.9
|
)
|
Foreign currency translation
|
(7.3
|
)
|
|
(4.8
|
)
|
|
(1.5
|
)
|
|
(0.5
|
)
|
|
(0.1
|
)
|
|
(0.4
|
)
|
September 30, 2016
|
820.2
|
|
|
365.3
|
|
|
207.0
|
|
|
48.9
|
|
|
77.2
|
|
|
121.8
|
|
Average AUM
|
782.0
|
|
|
355.3
|
|
|
194.3
|
|
|
47.3
|
|
|
72.6
|
|
|
112.5
|
|
% of total average AUM
|
100.0
|
%
|
|
45.4
|
%
|
|
24.8
|
%
|
|
6.0
|
%
|
|
9.3
|
%
|
|
14.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
December 31, 2014
|
792.4
|
|
|
384.4
|
|
|
181.6
|
|
|
50.6
|
|
|
76.5
|
|
|
99.3
|
|
Long-term inflows
|
146.1
|
|
|
67.9
|
|
|
34.5
|
|
|
13.3
|
|
|
3.0
|
|
|
27.4
|
|
Long-term outflows
|
(133.8
|
)
|
|
(73.5
|
)
|
|
(27.2
|
)
|
|
(10.6
|
)
|
|
(2.9
|
)
|
|
(19.6
|
)
|
Long-term net flows
|
12.3
|
|
|
(5.6
|
)
|
|
7.3
|
|
|
2.7
|
|
|
0.1
|
|
|
7.8
|
|
Net flows in Invesco PowerShares QQQ fund
|
(3.8
|
)
|
|
(3.8
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net flows in institutional money market funds
|
(10.1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(10.1
|
)
|
|
—
|
|
Total net flows
|
(1.6
|
)
|
|
(9.4
|
)
|
|
7.3
|
|
|
2.7
|
|
|
(10.0
|
)
|
|
7.8
|
|
Market gains and losses/reinvestment
|
(26.0
|
)
|
|
(17.8
|
)
|
|
(2.5
|
)
|
|
(1.5
|
)
|
|
0.3
|
|
|
(4.5
|
)
|
Acquisitions/dispositions, net
|
(0.7
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.7
|
)
|
Foreign currency translation
|
(8.3
|
)
|
|
(4.8
|
)
|
|
(0.9
|
)
|
|
(1.7
|
)
|
|
—
|
|
|
(0.9
|
)
|
September 30, 2015
|
755.8
|
|
|
352.4
|
|
|
185.5
|
|
|
50.1
|
|
|
66.8
|
|
|
101.0
|
|
Average AUM
|
798.4
|
|
|
390.5
|
|
|
184.9
|
|
|
51.8
|
|
|
71.4
|
|
|
99.8
|
|
% of total average AUM
|
100.0
|
%
|
|
48.9
|
%
|
|
23.2
|
%
|
|
6.5
|
%
|
|
8.9
|
%
|
|
12.5
|
%
|
$ in billions
|
Total
|
|
Equity
|
|
Fixed Income
|
|
Balanced
|
|
Money Market
|
|
Alternatives
(3)
|
||||||
June 30, 2016
|
133.5
|
|
|
84.9
|
|
|
38.9
|
|
|
—
|
|
|
0.2
|
|
|
9.5
|
|
Long-term inflows
|
11.8
|
|
|
6.9
|
|
|
4.1
|
|
|
—
|
|
|
—
|
|
|
0.8
|
|
Long-term outflows
|
(7.9
|
)
|
|
(6.2
|
)
|
|
(0.7
|
)
|
|
—
|
|
|
—
|
|
|
(1.0
|
)
|
Long-term net flows
|
3.9
|
|
|
0.7
|
|
|
3.4
|
|
|
—
|
|
|
—
|
|
|
(0.2
|
)
|
Net flows in Invesco PowerShares QQQ fund
|
1.1
|
|
|
1.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net flows in institutional money market funds
|
(0.1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.1
|
)
|
|
—
|
|
Total net flows
|
4.9
|
|
|
1.8
|
|
|
3.4
|
|
|
—
|
|
|
(0.1
|
)
|
|
(0.2
|
)
|
Market gains and losses/reinvestment
|
4.9
|
|
|
4.9
|
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
(0.1
|
)
|
Acquisitions/dispositions, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Foreign currency translation
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
September 30, 2016
|
143.3
|
|
|
91.6
|
|
|
42.4
|
|
|
—
|
|
|
0.1
|
|
|
9.2
|
|
Average AUM
|
141.0
|
|
|
90.8
|
|
|
40.7
|
|
|
—
|
|
|
0.1
|
|
|
9.4
|
|
% of total average AUM
|
100.0
|
%
|
|
64.4
|
%
|
|
28.9
|
%
|
|
—
|
%
|
|
0.1
|
%
|
|
6.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
June 30, 2015
|
141.6
|
|
|
89.4
|
|
|
41.2
|
|
|
—
|
|
|
—
|
|
|
11.0
|
|
Long-term inflows
|
6.8
|
|
|
5.3
|
|
|
0.9
|
|
|
—
|
|
|
—
|
|
|
0.6
|
|
Long-term outflows
|
(9.1
|
)
|
|
(6.2
|
)
|
|
(1.8
|
)
|
|
—
|
|
|
—
|
|
|
(1.1
|
)
|
Long-term net flows
|
(2.3
|
)
|
|
(0.9
|
)
|
|
(0.9
|
)
|
|
—
|
|
|
—
|
|
|
(0.5
|
)
|
Net flows in Invesco PowerShares QQQ fund
|
(0.9
|
)
|
|
(0.9
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net flows in institutional money market funds
|
0.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
Total net flows
|
(3.1
|
)
|
|
(1.8
|
)
|
|
(0.9
|
)
|
|
—
|
|
|
0.1
|
|
|
(0.5
|
)
|
Market gains and losses/reinvestment
|
(6.8
|
)
|
|
(5.3
|
)
|
|
(0.6
|
)
|
|
—
|
|
|
—
|
|
|
(0.9
|
)
|
Acquisitions/dispositions, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Foreign currency translation
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
September 30, 2015
|
131.7
|
|
|
82.3
|
|
|
39.7
|
|
|
—
|
|
|
0.1
|
|
|
9.6
|
|
Average AUM
|
138.4
|
|
|
87.8
|
|
|
40.6
|
|
|
—
|
|
|
—
|
|
|
10.0
|
|
% of total average AUM
|
100.0
|
%
|
|
63.4
|
%
|
|
29.3
|
%
|
|
—
|
%
|
|
—
|
%
|
|
7.2
|
%
|
$ in billions
|
Total
|
|
Equity
|
|
Fixed Income
|
|
Balanced
|
|
Money Market
|
|
Alternatives
(3)
|
||||||
December 31, 2015
|
139.1
|
|
|
91.0
|
|
|
38.6
|
|
|
—
|
|
|
0.4
|
|
|
9.1
|
|
Long-term inflows
|
34.0
|
|
|
21.7
|
|
|
9.7
|
|
|
—
|
|
|
—
|
|
|
2.6
|
|
Long-term outflows
|
(27.4
|
)
|
|
(21.0
|
)
|
|
(4.0
|
)
|
|
—
|
|
|
—
|
|
|
(2.4
|
)
|
Long-term net flows
|
6.6
|
|
|
0.7
|
|
|
5.7
|
|
|
—
|
|
|
—
|
|
|
0.2
|
|
Net flows in Invesco PowerShares QQQ fund
|
(5.3
|
)
|
|
(5.3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net flows in institutional money market funds
|
(0.3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.3
|
)
|
|
—
|
|
Total net flows
|
1.0
|
|
|
(4.6
|
)
|
|
5.7
|
|
|
—
|
|
|
(0.3
|
)
|
|
0.2
|
|
Market gains and losses/reinvestment
|
6.2
|
|
|
5.2
|
|
|
0.8
|
|
|
—
|
|
|
—
|
|
|
0.2
|
|
Acquisitions/dispositions, net
|
(3.2
|
)
|
|
—
|
|
|
(2.7
|
)
|
|
—
|
|
|
—
|
|
|
(0.5
|
)
|
Foreign currency translation
|
0.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.2
|
|
September 30, 2016
|
143.3
|
|
|
91.6
|
|
|
42.4
|
|
|
—
|
|
|
0.1
|
|
|
9.2
|
|
Average AUM
|
133.2
|
|
|
86.3
|
|
|
37.9
|
|
|
—
|
|
|
0.1
|
|
|
8.9
|
|
% of total average AUM
|
100.0
|
%
|
|
64.8
|
%
|
|
28.5
|
%
|
|
—
|
%
|
|
0.1
|
%
|
|
6.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
December 31, 2014
|
141.4
|
|
|
88.2
|
|
|
41.1
|
|
|
—
|
|
|
—
|
|
|
12.1
|
|
Long-term inflows
|
25.7
|
|
|
18.1
|
|
|
4.5
|
|
|
—
|
|
|
—
|
|
|
3.1
|
|
Long-term outflows
|
(24.0
|
)
|
|
(15.9
|
)
|
|
(4.0
|
)
|
|
—
|
|
|
—
|
|
|
(4.1
|
)
|
Long-term net flows
|
1.7
|
|
|
2.2
|
|
|
0.5
|
|
|
—
|
|
|
—
|
|
|
(1.0
|
)
|
Net flows in Invesco PowerShares QQQ fund
|
(3.8
|
)
|
|
(3.8
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net flows in institutional money market funds
|
0.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
Total net flows
|
(2.0
|
)
|
|
(1.6
|
)
|
|
0.5
|
|
|
—
|
|
|
0.1
|
|
|
(1.0
|
)
|
Market gains and losses/reinvestment
|
(7.0
|
)
|
|
(4.3
|
)
|
|
(1.9
|
)
|
|
—
|
|
|
—
|
|
|
(0.8
|
)
|
Acquisitions/dispositions, net
|
(0.7
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.7
|
)
|
Foreign currency translation
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
September 30, 2015
|
131.7
|
|
|
82.3
|
|
|
39.7
|
|
|
—
|
|
|
0.1
|
|
|
9.6
|
|
Average AUM
|
141.7
|
|
|
89.2
|
|
|
41.6
|
|
|
—
|
|
|
—
|
|
|
10.9
|
|
% of total average AUM
|
100.0
|
%
|
|
62.9
|
%
|
|
29.4
|
%
|
|
—
|
%
|
|
—
|
%
|
|
7.7
|
%
|
$ in billions
|
Total
|
|
U.S.
|
|
Canada
|
|
U.K.
|
|
Continental Europe
|
|
Asia
|
||||||
June 30, 2016
|
779.6
|
|
|
512.5
|
|
|
23.1
|
|
|
93.8
|
|
|
72.8
|
|
|
77.4
|
|
Long-term inflows
|
51.7
|
|
|
32.5
|
|
|
0.8
|
|
|
4.1
|
|
|
6.0
|
|
|
8.3
|
|
Long-term outflows
|
(39.5
|
)
|
|
(24.5
|
)
|
|
(1.0
|
)
|
|
(3.6
|
)
|
|
(6.3
|
)
|
|
(4.1
|
)
|
Long-term net flows
|
12.2
|
|
|
8.0
|
|
|
(0.2
|
)
|
|
0.5
|
|
|
(0.3
|
)
|
|
4.2
|
|
Net flows in Invesco PowerShares QQQ fund
|
1.1
|
|
|
1.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net flows in institutional money market funds
|
5.9
|
|
|
1.7
|
|
|
—
|
|
|
4.1
|
|
|
—
|
|
|
0.1
|
|
Total net flows
|
19.2
|
|
|
10.8
|
|
|
(0.2
|
)
|
|
4.6
|
|
|
(0.3
|
)
|
|
4.3
|
|
Market gains and losses/reinvestment
|
23.6
|
|
|
13.9
|
|
|
1.3
|
|
|
4.9
|
|
|
2.5
|
|
|
1.0
|
|
Acquisitions/dispositions, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Foreign currency translation
|
(2.2
|
)
|
|
—
|
|
|
(0.3
|
)
|
|
(2.6
|
)
|
|
0.5
|
|
|
0.2
|
|
September 30, 2016
|
820.2
|
|
|
537.2
|
|
|
23.9
|
|
|
100.7
|
|
|
75.5
|
|
|
82.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
June 30, 2015
|
803.6
|
|
|
530.8
|
|
|
24.9
|
|
|
110.7
|
|
|
77.0
|
|
|
60.2
|
|
Long-term inflows
|
43.5
|
|
|
20.6
|
|
|
0.9
|
|
|
5.7
|
|
|
8.3
|
|
|
8.0
|
|
Long-term outflows
|
(47.4
|
)
|
|
(25.6
|
)
|
|
(0.9
|
)
|
|
(5.9
|
)
|
|
(7.3
|
)
|
|
(7.7
|
)
|
Long-term net flows
|
(3.9
|
)
|
|
(5.0
|
)
|
|
—
|
|
|
(0.2
|
)
|
|
1.0
|
|
|
0.3
|
|
Net flows in Invesco PowerShares QQQ fund
|
(0.9
|
)
|
|
(0.9
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net flows in institutional money market funds
|
(1.5
|
)
|
|
(2.1
|
)
|
|
—
|
|
|
—
|
|
|
(0.1
|
)
|
|
0.7
|
|
Total net flows
|
(6.3
|
)
|
|
(8.0
|
)
|
|
—
|
|
|
(0.2
|
)
|
|
0.9
|
|
|
1.0
|
|
Market gains and losses/reinvestment
|
(35.6
|
)
|
|
(23.1
|
)
|
|
(1.3
|
)
|
|
(3.7
|
)
|
|
(3.7
|
)
|
|
(3.8
|
)
|
Acquisitions/dispositions, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Foreign currency translation
|
(5.9
|
)
|
|
—
|
|
|
(1.8
|
)
|
|
(3.7
|
)
|
|
(0.1
|
)
|
|
(0.3
|
)
|
September 30, 2015
|
755.8
|
|
|
499.7
|
|
|
21.8
|
|
|
103.1
|
|
|
74.1
|
|
|
57.1
|
|
$ in billions
|
Total
|
|
U.S.
|
|
Canada
|
|
U.K.
|
|
Continental Europe
|
|
Asia
|
||||||
December 31, 2015
|
775.6
|
|
|
510.7
|
|
|
21.7
|
|
|
104.2
|
|
|
75.4
|
|
|
63.6
|
|
Long-term inflows
|
140.3
|
|
|
84.6
|
|
|
2.6
|
|
|
11.5
|
|
|
18.7
|
|
|
22.9
|
|
Long-term outflows
|
(124.9
|
)
|
|
(76.8
|
)
|
|
(3.2
|
)
|
|
(12.4
|
)
|
|
(21.5
|
)
|
|
(11.0
|
)
|
Long-term net flows
|
15.4
|
|
|
7.8
|
|
|
(0.6
|
)
|
|
(0.9
|
)
|
|
(2.8
|
)
|
|
11.9
|
|
Net flows in Invesco PowerShares QQQ fund
|
(5.3
|
)
|
|
(5.3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net flows in institutional money market funds
|
11.7
|
|
|
5.6
|
|
|
0.4
|
|
|
3.3
|
|
|
—
|
|
|
2.4
|
|
Total net flows
|
21.8
|
|
|
8.1
|
|
|
(0.2
|
)
|
|
2.4
|
|
|
(2.8
|
)
|
|
14.3
|
|
Market gains and losses/reinvestment
|
31.3
|
|
|
22.1
|
|
|
1.2
|
|
|
5.6
|
|
|
1.5
|
|
|
0.9
|
|
Acquisitions/dispositions, net
|
(1.2
|
)
|
|
(3.6
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2.4
|
|
Foreign currency translation
|
(7.3
|
)
|
|
(0.1
|
)
|
|
1.2
|
|
|
(11.5
|
)
|
|
1.4
|
|
|
1.7
|
|
September 30, 2016
|
820.2
|
|
|
537.2
|
|
|
23.9
|
|
|
100.7
|
|
|
75.5
|
|
|
82.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
December 31, 2014
|
792.4
|
|
|
532.1
|
|
|
25.8
|
|
|
105.1
|
|
|
71.1
|
|
|
58.3
|
|
Long-term inflows
|
146.1
|
|
|
74.1
|
|
|
2.9
|
|
|
15.1
|
|
|
30.2
|
|
|
23.8
|
|
Long-term outflows
|
(133.8
|
)
|
|
(72.1
|
)
|
|
(3.0
|
)
|
|
(14.5
|
)
|
|
(22.6
|
)
|
|
(21.6
|
)
|
Long-term net flows
|
12.3
|
|
|
2.0
|
|
|
(0.1
|
)
|
|
0.6
|
|
|
7.6
|
|
|
2.2
|
|
Net flows in Invesco PowerShares QQQ fund
|
(3.8
|
)
|
|
(3.8
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net flows in institutional money market funds
|
(10.1
|
)
|
|
(11.1
|
)
|
|
(0.1
|
)
|
|
0.8
|
|
|
(0.3
|
)
|
|
0.6
|
|
Total net flows
|
(1.6
|
)
|
|
(12.9
|
)
|
|
(0.2
|
)
|
|
1.4
|
|
|
7.3
|
|
|
2.8
|
|
Market gains and losses/reinvestment
|
(26.0
|
)
|
|
(18.8
|
)
|
|
(0.1
|
)
|
|
(0.8
|
)
|
|
(2.9
|
)
|
|
(3.4
|
)
|
Acquisitions/dispositions, net
|
(0.7
|
)
|
|
(0.7
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Foreign currency translation
|
(8.3
|
)
|
|
—
|
|
|
(3.7
|
)
|
|
(2.6
|
)
|
|
(1.4
|
)
|
|
(0.6
|
)
|
September 30, 2015
|
755.8
|
|
|
499.7
|
|
|
21.8
|
|
|
103.1
|
|
|
74.1
|
|
|
57.1
|
|
$ in billions
|
Total
|
|
U.S.
|
|
Canada
|
|
U.K.
|
|
Continental Europe
|
|
Asia
|
||||||
June 30, 2016
|
133.5
|
|
|
128.9
|
|
|
0.5
|
|
|
—
|
|
|
1.7
|
|
|
2.4
|
|
Long-term inflows
|
11.8
|
|
|
11.6
|
|
|
0.1
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
Long-term outflows
|
(7.9
|
)
|
|
(7.7
|
)
|
|
(0.1
|
)
|
|
—
|
|
|
(0.1
|
)
|
|
—
|
|
Long-term net flows
|
3.9
|
|
|
3.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net flows in Invesco PowerShares QQQ fund
|
1.1
|
|
|
1.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net flows in institutional money market funds
|
(0.1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.1
|
)
|
Total net flows
|
4.9
|
|
|
5.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.1
|
)
|
Market gains and losses/reinvestment
|
4.9
|
|
|
4.7
|
|
|
—
|
|
|
—
|
|
|
0.2
|
|
|
—
|
|
Acquisitions/dispositions, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Foreign currency translation
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
September 30, 2016
|
143.3
|
|
|
138.6
|
|
|
0.5
|
|
|
—
|
|
|
1.9
|
|
|
2.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
June 30, 2015
|
141.6
|
|
|
137.4
|
|
|
0.4
|
|
|
—
|
|
|
1.8
|
|
|
2.0
|
|
Long-term inflows
|
6.8
|
|
|
5.9
|
|
|
—
|
|
|
—
|
|
|
0.2
|
|
|
0.7
|
|
Long-term outflows
|
(9.1
|
)
|
|
(8.3
|
)
|
|
—
|
|
|
—
|
|
|
(0.1
|
)
|
|
(0.7
|
)
|
Long-term net flows
|
(2.3
|
)
|
|
(2.4
|
)
|
|
—
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
Net flows in Invesco PowerShares QQQ fund
|
(0.9
|
)
|
|
(0.9
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net flows in institutional money market funds
|
0.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
Total net flows
|
(3.1
|
)
|
|
(3.3
|
)
|
|
—
|
|
|
—
|
|
|
0.1
|
|
|
0.1
|
|
Market gains and losses/reinvestment
|
(6.8
|
)
|
|
(6.6
|
)
|
|
—
|
|
|
—
|
|
|
(0.1
|
)
|
|
(0.1
|
)
|
Acquisitions/dispositions, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Foreign currency translation
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
September 30, 2015
|
131.7
|
|
|
127.5
|
|
|
0.4
|
|
|
—
|
|
|
1.8
|
|
|
2.0
|
|
$ in billions
|
Total
|
|
U.S.
|
|
Canada
|
|
U.K.
|
|
Continental Europe
|
|
Asia
|
||||||
December 31, 2015
|
139.1
|
|
|
134.4
|
|
|
0.4
|
|
|
—
|
|
|
1.9
|
|
|
2.4
|
|
Long-term inflows
|
34.0
|
|
|
33.4
|
|
|
0.3
|
|
|
—
|
|
|
0.3
|
|
|
—
|
|
Long-term outflows
|
(27.4
|
)
|
|
(26.7
|
)
|
|
(0.2
|
)
|
|
—
|
|
|
(0.5
|
)
|
|
—
|
|
Long-term net flows
|
6.6
|
|
|
6.7
|
|
|
0.1
|
|
|
—
|
|
|
(0.2
|
)
|
|
—
|
|
Net flows in Invesco PowerShares QQQ fund
|
(5.3
|
)
|
|
(5.3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net flows in institutional money market funds
|
(0.3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.3
|
)
|
Total net flows
|
1.0
|
|
|
1.4
|
|
|
0.1
|
|
|
—
|
|
|
(0.2
|
)
|
|
(0.3
|
)
|
Market gains and losses/reinvestment
|
6.2
|
|
|
6.0
|
|
|
—
|
|
|
—
|
|
|
0.2
|
|
|
—
|
|
Acquisitions/dispositions, net
|
(3.2
|
)
|
|
(3.2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Foreign currency translation
|
0.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.2
|
|
September 30, 2016
|
143.3
|
|
|
138.6
|
|
|
0.5
|
|
|
—
|
|
|
1.9
|
|
|
2.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
December 31, 2014
|
141.4
|
|
|
137.6
|
|
|
0.2
|
|
|
—
|
|
|
1.8
|
|
|
1.8
|
|
Long-term inflows
|
25.7
|
|
|
23.6
|
|
|
0.1
|
|
|
—
|
|
|
0.5
|
|
|
1.5
|
|
Long-term outflows
|
(24.0
|
)
|
|
(22.1
|
)
|
|
—
|
|
|
—
|
|
|
(0.4
|
)
|
|
(1.5
|
)
|
Long-term net flows
|
1.7
|
|
|
1.5
|
|
|
0.1
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
Net flows in Invesco PowerShares QQQ fund
|
(3.8
|
)
|
|
(3.8
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net flows in institutional money market funds
|
0.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
Total net flows
|
(2.0
|
)
|
|
(2.3
|
)
|
|
0.1
|
|
|
—
|
|
|
0.1
|
|
|
0.1
|
|
Market gains and losses/reinvestment
|
(7.0
|
)
|
|
(7.1
|
)
|
|
0.1
|
|
|
—
|
|
|
(0.1
|
)
|
|
0.1
|
|
Acquisitions/dispositions, net
|
(0.7
|
)
|
|
(0.7
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Foreign currency translation
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
September 30, 2015
|
131.7
|
|
|
127.5
|
|
|
0.4
|
|
|
—
|
|
|
1.8
|
|
|
2.0
|
|
1)
|
Channel refers to the internal distribution channel from which the AUM originated. Retail AUM represents AUM distributed by the company's retail sales team. Institutional AUM represents AUM distributed by our institutional sales team. This aggregation is viewed as a proxy for presenting AUM in the retail and institutional markets in which the company operates.
|
(2)
|
Asset classes are descriptive groupings of AUM by common type of underlying investments.
|
(3)
|
There have been no significant changes to the managed objectives under the Alternatives asset class, which are disclosed in our most recent Form 10-K for the year ended
December 31, 2015
.
|
(4)
|
Ending Money Market AUM includes
$69.2 billion
in institutional money market AUM and
$8.0 billion
in retail money market AUM.
|
(5)
|
Client domicile disclosure groups AUM by the domicile of the underlying clients.
|
|
|
|
|
|
Variance
|
|
|
|
|
|
Variance
|
||||||||||||
|
Three months ended September 30,
|
|
2016 vs 2015
|
|
Nine months ended September 30,
|
|
2016 vs 2015
|
||||||||||||||||
$ in millions
|
2016
|
|
2015
|
|
$ Change
|
|
% Change
|
|
2016
|
|
2015
|
|
$ Change
|
|
% Change
|
||||||||
Investment management fees
|
965.9
|
|
|
1,016.9
|
|
|
(51.0
|
)
|
|
(5.0
|
)%
|
|
2,826.2
|
|
|
3,074.0
|
|
|
(247.8
|
)
|
|
(8.1
|
)%
|
Service and distribution fees
|
213.4
|
|
|
214.8
|
|
|
(1.4
|
)
|
|
(0.7
|
)%
|
|
614.5
|
|
|
647.8
|
|
|
(33.3
|
)
|
|
(5.1
|
)%
|
Performance fees
|
3.4
|
|
|
15.6
|
|
|
(12.2
|
)
|
|
(78.2
|
)%
|
|
26.8
|
|
|
69.1
|
|
|
(42.3
|
)
|
|
(61.2
|
)%
|
Other
|
18.9
|
|
|
26.2
|
|
|
(7.3
|
)
|
|
(27.9
|
)%
|
|
72.2
|
|
|
92.3
|
|
|
(20.1
|
)
|
|
(21.8
|
)%
|
Total operating revenues
|
1,201.6
|
|
|
1,273.5
|
|
|
(71.9
|
)
|
|
(5.6
|
)%
|
|
3,539.7
|
|
|
3,883.2
|
|
|
(343.5
|
)
|
|
(8.8
|
)%
|
Third-party distribution, service and advisory expenses
|
(362.1
|
)
|
|
(392.3
|
)
|
|
30.2
|
|
|
(7.7
|
)%
|
|
(1,057.7
|
)
|
|
(1,204.7
|
)
|
|
147.0
|
|
|
(12.2
|
)%
|
Proportional share of revenues, net of third-party distribution expenses, from joint venture investments
|
9.5
|
|
|
12.3
|
|
|
(2.8
|
)
|
|
(22.8
|
)%
|
|
31.1
|
|
|
49.4
|
|
|
(18.3
|
)
|
|
(37.0
|
)%
|
CIP
|
5.7
|
|
|
9.5
|
|
|
(3.8
|
)
|
|
(40.0
|
)%
|
|
16.3
|
|
|
29.2
|
|
|
(12.9
|
)
|
|
(44.2
|
)%
|
Net revenues
|
854.7
|
|
|
903.0
|
|
|
(48.3
|
)
|
|
(5.3
|
)%
|
|
2,529.4
|
|
|
2,757.1
|
|
|
(227.7
|
)
|
|
(8.3
|
)%
|
|
|
|
|
|
Variance
|
|
|
|
|
|
Variance
|
||||||||||||
|
Three months ended September 30,
|
|
2016 vs 2015
|
|
Nine months ended September 30,
|
|
2016 vs 2015
|
||||||||||||||||
$ in millions
|
2016
|
|
2015
|
|
$ Change
|
|
% Change
|
|
2016
|
|
2015
|
|
$ Change
|
|
% Change
|
||||||||
Third-party distribution, service and advisory
|
362.1
|
|
|
392.3
|
|
|
(30.2
|
)
|
|
(7.7
|
)%
|
|
1,057.7
|
|
|
1,204.7
|
|
|
(147.0
|
)
|
|
(12.2
|
)%
|
Employee compensation
|
345.1
|
|
|
337.6
|
|
|
7.5
|
|
|
2.2
|
%
|
|
1,039.8
|
|
|
1,045.7
|
|
|
(5.9
|
)
|
|
(0.6
|
)%
|
Marketing
|
26.4
|
|
|
24.9
|
|
|
1.5
|
|
|
6.0
|
%
|
|
79.6
|
|
|
81.3
|
|
|
(1.7
|
)
|
|
(2.1
|
)%
|
Property, office and technology
|
78.2
|
|
|
79.0
|
|
|
(0.8
|
)
|
|
(1.0
|
)%
|
|
240.4
|
|
|
230.7
|
|
|
9.7
|
|
|
4.2
|
%
|
General and administrative
|
83.5
|
|
|
87.0
|
|
|
(3.5
|
)
|
|
(4.0
|
)%
|
|
240.0
|
|
|
266.0
|
|
|
(26.0
|
)
|
|
(9.8
|
)%
|
Total operating expenses
|
895.3
|
|
|
920.8
|
|
|
(25.5
|
)
|
|
(2.8
|
)%
|
|
2,657.5
|
|
|
2,828.4
|
|
|
(170.9
|
)
|
|
(6.0
|
)%
|
$ in millions
|
Three months ended September 30, 2016
|
|
% of Total Operating Expenses
|
|
% of Operating Revenues
|
|
Three months ended September 30, 2015
|
|
% of Total Operating Expenses
|
|
% of Operating Revenues
|
||||||
Third-party distribution, service and advisory
|
362.1
|
|
|
40.5
|
%
|
|
30.1
|
%
|
|
392.3
|
|
|
42.6
|
%
|
|
30.8
|
%
|
Employee compensation
|
345.1
|
|
|
38.6
|
%
|
|
28.7
|
%
|
|
337.6
|
|
|
36.7
|
%
|
|
26.5
|
%
|
Marketing
|
26.4
|
|
|
2.9
|
%
|
|
2.2
|
%
|
|
24.9
|
|
|
2.7
|
%
|
|
2.0
|
%
|
Property, office and technology
|
78.2
|
|
|
8.7
|
%
|
|
6.5
|
%
|
|
79.0
|
|
|
8.6
|
%
|
|
6.2
|
%
|
General and administrative
|
83.5
|
|
|
9.3
|
%
|
|
7.0
|
%
|
|
87.0
|
|
|
9.4
|
%
|
|
6.8
|
%
|
Total operating expenses
|
895.3
|
|
|
100.0
|
%
|
|
74.5
|
%
|
|
920.8
|
|
|
100.0
|
%
|
|
72.3
|
%
|
$ in millions
|
Nine months ended September 30, 2016
|
|
% of Total Operating Expenses
|
|
% of Operating Revenues
|
|
Nine months ended September 30, 2015
|
|
% of Total Operating Expenses
|
|
% of Operating Revenues
|
||||||
Third-party distribution, service and advisory
|
1,057.7
|
|
|
39.8
|
%
|
|
29.9
|
%
|
|
1,204.7
|
|
|
42.6
|
%
|
|
31.0
|
%
|
Employee compensation
|
1,039.8
|
|
|
39.1
|
%
|
|
29.4
|
%
|
|
1,045.7
|
|
|
37.0
|
%
|
|
26.9
|
%
|
Marketing
|
79.6
|
|
|
3.0
|
%
|
|
2.2
|
%
|
|
81.3
|
|
|
2.9
|
%
|
|
2.1
|
%
|
Property, office and technology
|
240.4
|
|
|
9.1
|
%
|
|
6.8
|
%
|
|
230.7
|
|
|
8.1
|
%
|
|
5.9
|
%
|
General and administrative
|
240.0
|
|
|
9.0
|
%
|
|
6.8
|
%
|
|
266.0
|
|
|
9.4
|
%
|
|
6.9
|
%
|
Total operating expenses
|
2,657.5
|
|
|
100.0
|
%
|
|
75.1
|
%
|
|
2,828.4
|
|
|
100.0
|
%
|
|
72.8
|
%
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||
$ in millions
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||
Operating revenues, U.S. GAAP basis
|
1,201.6
|
|
|
1,273.5
|
|
|
3,539.7
|
|
|
3,883.2
|
|
Proportional share of revenues, net of third-party distribution expenses, from joint venture investments
(1)
|
9.5
|
|
|
12.3
|
|
|
31.1
|
|
|
49.4
|
|
Third party distribution, service and advisory expenses
(2)
|
(362.1
|
)
|
|
(392.3
|
)
|
|
(1,057.7
|
)
|
|
(1,204.7
|
)
|
CIP
(3)
|
5.7
|
|
|
9.5
|
|
|
16.3
|
|
|
29.2
|
|
Net revenues
|
854.7
|
|
|
903.0
|
|
|
2,529.4
|
|
|
2,757.1
|
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||
$ in millions
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||
Operating income, U.S. GAAP basis
|
306.3
|
|
|
352.7
|
|
|
882.2
|
|
|
1,054.8
|
|
Proportional share of net operating income from joint venture investments
(1)
|
3.0
|
|
|
4.2
|
|
|
10.5
|
|
|
23.3
|
|
CIP
(3)
|
13.1
|
|
|
18.2
|
|
|
33.4
|
|
|
51.6
|
|
Business combinations
(4)
|
4.5
|
|
|
2.7
|
|
|
18.5
|
|
|
9.2
|
|
Compensation expense related to market valuation changes in deferred compensation plans
(5)
|
4.1
|
|
|
(4.4
|
)
|
|
5.7
|
|
|
0.8
|
|
Other reconciling items
(6)
|
8.3
|
|
|
—
|
|
|
26.5
|
|
|
(1.7
|
)
|
Adjusted operating income
|
339.3
|
|
|
373.4
|
|
|
976.8
|
|
|
1,138.0
|
|
|
|
|
|
|
|
|
|
||||
Operating margin*
|
25.5
|
%
|
|
27.7
|
%
|
|
24.9
|
%
|
|
27.2
|
%
|
Adjusted operating margin**
|
39.7
|
%
|
|
41.4
|
%
|
|
38.6
|
%
|
|
41.3
|
%
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||
$ in millions, except per share data
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Net income attributable to Invesco Ltd., U.S. GAAP basis
|
241.2
|
|
|
249.3
|
|
|
627.7
|
|
|
766.2
|
|
||||
CIP, eliminated upon consolidation
(3)
|
(3.2
|
)
|
|
13.2
|
|
|
(2.8
|
)
|
|
21.0
|
|
||||
Business combinations, net of tax
(4)
|
5.4
|
|
|
(4.3
|
)
|
|
50.6
|
|
|
11.4
|
|
||||
Deferred compensation plan market valuation changes and dividend income less compensation expense, net of tax
(5)
|
(2.4
|
)
|
|
4.8
|
|
|
(2.6
|
)
|
|
7.0
|
|
||||
Other reconciling items, net of tax
(6)
|
5.2
|
|
|
(1.6
|
)
|
|
11.1
|
|
|
(0.7
|
)
|
||||
Adjusted net income attributable to Invesco Ltd.
|
246.2
|
|
|
261.4
|
|
|
684.0
|
|
|
804.9
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Average shares outstanding - diluted
|
412.9
|
|
|
429.1
|
|
|
417.0
|
|
|
431.3
|
|
||||
Diluted EPS
|
|
$0.58
|
|
|
|
$0.58
|
|
|
|
$1.51
|
|
|
|
$1.78
|
|
Adjusted diluted EPS***
|
|
$0.60
|
|
|
|
$0.61
|
|
|
|
$1.64
|
|
|
|
$1.87
|
|
*
|
Operating margin is equal to operating income divided by operating revenues.
|
**
|
Adjusted operating margin is equal to adjusted operating income divided by net revenues.
|
***
|
Adjusted diluted EPS is equal to adjusted net income attributable to Invesco Ltd. divided by the weighted average number of common and restricted shares outstanding. There is no difference between the calculated earnings per share amounts presented above and the calculated earnings per share amounts under the two class method.
|
(1)
|
Proportional share of net revenues and operating income from joint venture investments
|
(2)
|
Third-party distribution, service and advisory expenses
|
(3)
|
CIP
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||
$ in millions, except per share data
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||
Management fees earned from CIP, eliminated upon consolidation
|
5.3
|
|
|
7.5
|
|
|
15.0
|
|
|
22.4
|
|
Performance fees earned from CIP, eliminated upon consolidation
|
0.4
|
|
|
2.0
|
|
|
1.3
|
|
|
6.8
|
|
CIP related adjustments in arriving at net revenues
|
5.7
|
|
|
9.5
|
|
|
16.3
|
|
|
29.2
|
|
(4)
|
Business combinations
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||
$ in millions
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||
Business combinations:
|
|
|
|
|
|
|
|
||||
Intangible amortization expense
|
3.7
|
|
|
2.7
|
|
|
10.5
|
|
|
8.0
|
|
Employee compensation expense
|
0.8
|
|
|
—
|
|
|
6.5
|
|
|
—
|
|
Other business combination-related items
|
—
|
|
|
—
|
|
|
1.5
|
|
|
1.2
|
|
Adjustments to operating income
|
4.5
|
|
|
2.7
|
|
|
18.5
|
|
|
9.2
|
|
Changes in the fair value of contingent consideration
|
(5.3
|
)
|
|
(18.4
|
)
|
|
6.3
|
|
|
(18.4
|
)
|
Other-than-temporary impairment
|
—
|
|
|
—
|
|
|
17.8
|
|
|
—
|
|
Taxation:
|
|
|
|
|
|
|
|
||||
Taxation on amortization
|
(0.3
|
)
|
|
(0.4
|
)
|
|
(1.0
|
)
|
|
(1.1
|
)
|
Taxation on employee compensation expense
|
(0.2
|
)
|
|
—
|
|
|
(2.4
|
)
|
|
—
|
|
Deferred taxation
|
4.7
|
|
|
4.8
|
|
|
14.3
|
|
|
15.2
|
|
Taxation on other business combination-related items
|
—
|
|
|
—
|
|
|
(0.5
|
)
|
|
(0.5
|
)
|
Taxation on changes in the fair value of contingent consideration
|
2.0
|
|
|
7.0
|
|
|
(2.4
|
)
|
|
7.0
|
|
Adjustments to net income attributable to Invesco Ltd.
|
5.4
|
|
|
(4.3
|
)
|
|
50.6
|
|
|
11.4
|
|
(5)
|
Market movement on deferred compensation plan liabilities
|
(6)
|
Other reconciling items
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||
$ in millions
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||
Other non-GAAP adjustments:
|
|
|
|
|
|
|
|
||||
Business optimization charges:
(a)
|
|
|
|
|
|
|
|
||||
Employee compensation
|
5.8
|
|
|
—
|
|
|
14.2
|
|
|
—
|
|
Consulting and temporary labor
|
5.4
|
|
|
—
|
|
|
14.1
|
|
|
—
|
|
Property, office and technology
|
0.5
|
|
|
—
|
|
|
0.6
|
|
|
(6.4
|
)
|
Vacated property lease credit
(b)
|
(3.4
|
)
|
|
—
|
|
|
(3.4
|
)
|
|
—
|
|
Regulatory charge
(c)
|
—
|
|
|
—
|
|
|
1.0
|
|
|
—
|
|
Fund reimbursement expense
(d)
|
—
|
|
|
—
|
|
|
—
|
|
|
4.7
|
|
Adjustments to operating income
|
8.3
|
|
|
—
|
|
|
26.5
|
|
|
(1.7
|
)
|
Foreign exchange hedge (gain)/loss
(e)
|
2.2
|
|
|
(1.6
|
)
|
|
(7.6
|
)
|
|
1.5
|
|
Taxation:
|
|
|
|
|
|
|
|
||||
Taxation on business optimization charges
(a)
|
(3.7
|
)
|
|
—
|
|
|
(9.2
|
)
|
|
1.3
|
|
Taxation on vacated property lease credit
(b)
|
0.7
|
|
|
—
|
|
|
0.7
|
|
|
—
|
|
Taxation on regulatory-related charges
(c)
|
(1.4
|
)
|
|
—
|
|
|
(1.8
|
)
|
|
—
|
|
Taxation on fund reimbursement expense
(d)
|
—
|
|
|
—
|
|
|
—
|
|
|
(1.8
|
)
|
Taxation on foreign exchange hedge amortization
(e)
|
(0.9
|
)
|
|
—
|
|
|
2.5
|
|
|
—
|
|
Adjustments to net income attributable to Invesco Ltd.
|
5.2
|
|
|
(1.6
|
)
|
|
11.1
|
|
|
(0.7
|
)
|
(a)
|
Business optimization: Operating expense for the
three and nine months ended
September 30, 2016
include costs associated with a business transformation initiative that include severance costs of
$5.8 million
and
$14.2 million
, respectively (
three and nine months ended
September 30, 2015
:
zero
), consulting and temporary labor costs of
$5.4 million
and
$14.1 million
, respectively (
three and nine months ended
September 30, 2015
:
zero
) and a property related charges of
$0.5 million
and
$0.6 million
, respectively, (
three and nine months ended
September 30, 2015
:
zero
and credit of
$6.4 million
, respectively) associated with vacating leased properties.
|
(b)
|
General and administrative expense for the
three and nine months ended
September 30, 2016
include a credit of
$3.4 million
related to the provision associated with a vacated European leased property. This credit relates to a charge recorded in a prior year.
|
(c)
|
General and administrative expense for the
nine months ended
September 30, 2016
include a net settlement charge of
$1.0 million
(
nine months ended
September 30, 2015
:
zero
) pertaining to regulatory actions.
|
(d)
|
General and administrative expenses for the
nine months ended
September 30, 2015
included a charge of
$4.7 million
multi-year fund reimbursement expense associated with historical private equity management fees and related professional services fees. The charge resulted primarily from using a more appropriate methodology regarding the calculation of offsets to management fees.
|
(e)
|
Included within other gains and losses, net is the mark-to-market of foreign exchange put option contracts intended to provide protection against the impact of a significant decline in the Pound Sterling/U.S. Dollar foreign exchange rate. These contracts provide coverage through December 31, 2017. The adjustment from U.S. GAAP to non-GAAP earnings removes the impact of market volatility; therefore, the company's non-GAAP results include only the amortization of the cost of the contracts during the contract period.
|
|
Nine months ended September 30, 2016
|
|
Nine months ended September 30, 2015
|
||||||||
$ in millions
|
Impact of CIP
|
|
Invesco Ltd. Consolidated
|
|
Impact of CIP
|
|
Invesco Ltd. Consolidated
|
||||
Operating activities:
|
|
|
|
|
|
|
|
||||
Net income
|
25.3
|
|
|
650.2
|
|
|
(21.0
|
)
|
|
769.3
|
|
Adjustments to reconcile net income to net cash provided by/(used in) operating activities:
|
|
|
|
|
|
|
|
||||
Amortization and depreciation
|
—
|
|
|
75.5
|
|
|
—
|
|
|
68.6
|
|
Share-based compensation expense
|
—
|
|
|
118.4
|
|
|
—
|
|
|
112.9
|
|
Other (gains)/losses, net
|
3.7
|
|
|
(7.3
|
)
|
|
3.9
|
|
|
5.2
|
|
Other (gains)/losses of CSIP, net
|
—
|
|
|
—
|
|
|
—
|
|
|
(1.6
|
)
|
Other (gains)/losses of CIP, net
|
(18.1
|
)
|
|
(18.1
|
)
|
|
12.6
|
|
|
12.6
|
|
Equity in earnings of unconsolidated affiliates
|
6.8
|
|
|
2.1
|
|
|
1.0
|
|
|
(32.0
|
)
|
Dividends from unconsolidated affiliates
|
—
|
|
|
16.3
|
|
|
—
|
|
|
17.9
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|
||||
(Increase)/decrease in cash held by CIP
|
(66.2
|
)
|
|
(66.2
|
)
|
|
(184.3
|
)
|
|
(184.3
|
)
|
(Increase)/decrease in cash held by CSIP
|
—
|
|
|
—
|
|
|
—
|
|
|
(3.1
|
)
|
(Purchase)/sale of investments by CIP, net
|
(131.9
|
)
|
|
(131.9
|
)
|
|
—
|
|
|
—
|
|
(Purchase)/sale of trading investments, net
|
(12.8
|
)
|
|
(13.4
|
)
|
|
—
|
|
|
(106.7
|
)
|
(Increase)/decrease in receivables
|
14.7
|
|
|
(2,257.5
|
)
|
|
(18.0
|
)
|
|
(4,168.4
|
)
|
Increase/(decrease) in payables
|
(1.6
|
)
|
|
2,174.0
|
|
|
3.8
|
|
|
4,065.2
|
|
Net cash provided by/(used in) operating activities
|
(180.1
|
)
|
|
542.1
|
|
|
(202.0
|
)
|
|
555.6
|
|
Investing activities:
|
|
|
|
|
|
|
|
||||
Purchase of property, equipment and software
|
—
|
|
|
(101.3
|
)
|
|
—
|
|
|
(88.1
|
)
|
Purchase of available-for-sale investments
|
7.5
|
|
|
(4.3
|
)
|
|
60.8
|
|
|
(41.5
|
)
|
Sale of available-for-sale investments
|
(5.3
|
)
|
|
38.4
|
|
|
(59.7
|
)
|
|
48.5
|
|
Purchase of investments by CIP
|
(2,398.0
|
)
|
|
(2,398.0
|
)
|
|
(3,226.4
|
)
|
|
(3,226.4
|
)
|
Sale of investments by CIP
|
1,835.9
|
|
|
1,835.9
|
|
|
2,827.8
|
|
|
2,827.8
|
|
Purchase of investments by CSIP
|
—
|
|
|
—
|
|
|
—
|
|
|
(397.5
|
)
|
Sale of investments by CSIP
|
—
|
|
|
—
|
|
|
—
|
|
|
384.0
|
|
Purchase of other investments
|
36.8
|
|
|
(98.3
|
)
|
|
1.4
|
|
|
(115.2
|
)
|
Sale of other investments
|
(50.0
|
)
|
|
67.7
|
|
|
—
|
|
|
73.8
|
|
Returns of capital and distributions from unconsolidated partnership investments
|
(6.5
|
)
|
|
30.0
|
|
|
(0.5
|
)
|
|
45.1
|
|
Purchase of business
|
—
|
|
|
(121.9
|
)
|
|
—
|
|
|
—
|
|
Net cash provided by/(used in) investing activities
|
(579.6
|
)
|
|
(751.8
|
)
|
|
(396.6
|
)
|
|
(489.5
|
)
|
Financing activities:
|
|
|
|
|
|
|
|
||||
Proceeds from exercises of share options
|
—
|
|
|
—
|
|
|
—
|
|
|
2.1
|
|
Purchases of treasury shares
|
—
|
|
|
(385.0
|
)
|
|
—
|
|
|
(334.0
|
)
|
Dividends paid
|
—
|
|
|
(346.3
|
)
|
|
—
|
|
|
(340.8
|
)
|
Excess tax benefits from share-based compensation
|
—
|
|
|
(2.4
|
)
|
|
—
|
|
|
19.1
|
|
Third-party capital invested into CIP
|
193.9
|
|
|
193.9
|
|
|
63.3
|
|
|
63.3
|
|
Third-party capital distributed by CIP
|
(64.1
|
)
|
|
(64.1
|
)
|
|
(99.0
|
)
|
|
(99.0
|
)
|
Third-party capital invested into CSIP
|
—
|
|
|
—
|
|
|
—
|
|
|
13.5
|
|
Borrowings of debt by CIP
|
760.1
|
|
|
760.1
|
|
|
2,091.8
|
|
|
2,091.8
|
|
Repayments of debt by CIP
|
(130.2
|
)
|
|
(130.2
|
)
|
|
(1,457.5
|
)
|
|
(1,457.5
|
)
|
Net borrowings/(repayments) under credit facility
|
—
|
|
|
—
|
|
|
—
|
|
|
99.5
|
|
Payment of contingent consideration
|
—
|
|
|
(9.5
|
)
|
|
—
|
|
|
(4.6
|
)
|
Net cash provided by/(used in) financing activities
|
759.7
|
|
|
16.5
|
|
|
598.6
|
|
|
53.4
|
|
Increase/(decrease) in cash and cash equivalents
|
—
|
|
|
(193.2
|
)
|
|
—
|
|
|
119.5
|
|
Foreign exchange movement on cash and cash equivalents
|
—
|
|
|
(76.9
|
)
|
|
—
|
|
|
(43.0
|
)
|
Cash and cash equivalents, beginning of period
|
—
|
|
|
1,851.4
|
|
|
—
|
|
|
1,514.2
|
|
Cash and cash equivalents, end of period
|
—
|
|
|
1,581.3
|
|
|
—
|
|
|
1,590.7
|
|
$ in millions
|
September 30, 2016
|
|
December 31, 2015
|
||
Floating rate credit facility expiring August 7, 2020
|
—
|
|
|
—
|
|
Unsecured Senior Notes:
|
|
|
|
||
$600 million 3.125% - due November 30, 2022
|
596.2
|
|
|
596.1
|
|
$600 million 4.000% - due January 30, 2024
|
593.0
|
|
|
592.7
|
|
$500 million 3.750% - due January 15, 2026
|
494.4
|
|
|
494.2
|
|
$400 million 5.375% - due November 30, 2043
|
389.6
|
|
|
389.8
|
|
Long-term debt
|
2,073.2
|
|
|
2,072.8
|
|
$ millions
|
Total
|
|
Q3 2016
|
|
Q2 2016
|
|
Q1 2016
|
|
Q4 2015
|
||||||
Net income attributable to Invesco Ltd.
|
829.6
|
|
|
241.2
|
|
|
225.5
|
|
|
161.0
|
|
|
201.9
|
|
|
Impact of CIP on net income attributable to Invesco Ltd.
|
16.6
|
|
|
(3.2
|
)
|
|
(8.0
|
)
|
|
8.4
|
|
|
19.4
|
|
|
Tax expense
|
332.3
|
|
|
89.8
|
|
|
83.7
|
|
|
71.9
|
|
|
86.9
|
|
|
Amortization/depreciation/impairment
|
100.5
|
|
|
25.6
|
|
|
25.2
|
|
|
24.7
|
|
|
25.0
|
|
|
Interest expense
|
92.9
|
|
|
23.9
|
|
|
22.1
|
|
|
23.9
|
|
|
23.0
|
|
|
Share-based compensation expense
|
155.8
|
|
|
39.3
|
|
|
40.4
|
|
|
38.7
|
|
|
37.4
|
|
|
Unrealized gains and losses from investments, net
*
|
14.3
|
|
|
(11.8
|
)
|
|
12.1
|
|
|
16.4
|
|
|
(2.4
|
)
|
|
EBITDA
**
|
1,542.0
|
|
|
404.8
|
|
|
401.0
|
|
|
345.0
|
|
|
391.2
|
|
|
Adjusted debt
**
|
|
$2,091.7
|
|
|
|
|
|
|
|
|
|
||||
Leverage ratio (Debt/EBITDA - maximum 3.25:1.00)
|
1.36
|
|
|
|
|
|
|
|
|
|
|||||
Interest coverage (EBITDA/Interest Expense - minimum 4.00:1.00)
|
16.60
|
|
|
|
|
|
|
|
|
|
*
|
Adjustments for unrealized gains and losses from investments, as defined in our credit facility, may also include non-cash gains and losses on investments to the extent that they do not represent anticipated future cash receipts or expenditures.
|
**
|
EBITDA and Adjusted debt are non-GAAP financial measures; however management does not use these measures for anything other than these debt covenant calculations. The calculation of EBITDA above (a reconciliation from net income attributable to Invesco Ltd.) is defined by our credit agreement, and therefore net income attributable to Invesco Ltd. is the most appropriate GAAP measure from which to reconcile to EBITDA. The calculation of Adjusted debt is defined in our credit facility and equals total debt of
$2,073.2 million
plus
$18.5 million
in letters of credit.
|
•
|
Causing the value of AUM to decrease.
|
•
|
Causing the returns realized on AUM to decrease (impacting performance fees).
|
•
|
Causing clients to withdraw funds in favor of investments in markets that they perceive to offer greater opportunity and that the company does not serve.
|
•
|
Causing clients to rebalance assets away from investments that the company manages into investments that the company does not manage.
|
•
|
Causing clients to reallocate assets away from products that earn higher revenues into products that earn lower revenues.
|
Month
|
Total Number of Shares Purchased
(1)
|
|
Average Price Paid Per Share
|
|
Total Number of Shares
Purchased as Part of Publicly Announced Plans or Programs (2) |
|
Maximum Number at end of period (or Approximate
Dollar Value) of Shares that May Yet Be Purchased Under the Plans or Programs (2) (millions) |
||||||
July1-31, 2016
|
3,304
|
|
|
$
|
26.08
|
|
|
—
|
|
|
|
$1,853.0
|
|
August 1-31, 2016
|
5,059
|
|
|
$
|
30.01
|
|
|
—
|
|
|
|
$1,853.0
|
|
September 1-30, 2016
(3)
|
1,582,873
|
|
|
$
|
29.98
|
|
|
1,561,612
|
|
|
|
$1,793.0
|
|
Total
|
1,591,236
|
|
|
|
|
1,561,612
|
|
|
|
(1)
|
An aggregate of
29,624
shares were surrendered to us by Invesco employees to satisfy tax withholding obligations or loan repayments in connection with the vesting of equity awards.
|
(2)
|
At
September 30, 2016
, a balance of
$1,793.0 million
remains available under the share repurchase authorizations approved by the Board on October 11, 2013 and July 22, 2016.
|
(3)
|
The number of shares purchased during September 2016 includes 592,717 shares delivered on finalization of an accelerated share repurchase agreement entered into in June 2016. In total, the agreement purchased 5,291,229 shares at w
eighted average price of $28.35. This average share price has been used in this table for the shares delivered in September 2016.
|
3.1
|
Memorandum of Association of Invesco Ltd., incorporating amendments up to and including December 4, 2007, incorporated by reference to exhibit 3.1 to Invesco’s Current Report on Form 8-K, filed with the Securities and Exchange Commission on December 12, 2007
|
3.2
|
Second Amended and Restated Bye-Laws of Invesco Ltd., incorporating amendments up to and including May 15, 2014, incorporated by reference to Exhibit 3.2 to Invesco’s Quarterly Report of Form 10-Q, filed with the Securities and Exchange Commission on July 31, 2014
|
31.1
|
Certification of Martin L. Flanagan pursuant to Rule 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
31.2
|
Certification of Loren M. Starr pursuant to Rule 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
32.1
|
Certification of Martin L. Flanagan pursuant to Rule 13a-14(b) and 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
32.2
|
Certification of Loren M. Starr pursuant to Rule 13a-14(b) and 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
101.INS
|
XBRL Instance Document
|
101.SCH
|
XBRL Taxonomy Extension Schema Document
|
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
101.LAB
|
XBRL Taxonomy Extension Definition Linkbase Document
|
101.PRE
|
XBRL Taxonomy Extension Labels Linkbase Document
|
101.DEF
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
|
INVESCO LTD.
|
October 27, 2016
|
/s/ MARTIN L. FLANAGAN
|
|
Martin L. Flanagan
|
|
President and Chief Executive Officer
|
|
|
October 27, 2016
|
/s/ LOREN M. STARR
|
|
Loren M. Starr
|
|
Senior Managing Director and Chief Financial Officer
|
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