Q3 2024 Invesco Ltd Earnings Call Transcript
Key Points
- Invesco Ltd (IVZ) achieved record long-term assets under management (AUM) of $1.8 trillion, marking a 5% increase from the previous quarter and a 21% increase year-over-year.
- The company reported strong net long-term inflows of $16.5 billion, representing a 5.2% annualized organic growth rate, with positive contributions from all three regions: Asia Pacific, EMEA, and the Americas.
- Invesco Ltd (IVZ) demonstrated improved operating leverage, with a 4% increase in adjusted operating income and a 70 basis point improvement in operating margin from the previous quarter.
- The firm strengthened its balance sheet by achieving a net cash position, surpassing its zero net debt goal, and executed $25 million in share buybacks during the quarter.
- The ETF platform experienced significant growth, with organic long-term inflows of $17.7 billion, marking one of the highest ETF growth quarters in the company's history.
- The Chinese market remained challenging, with market volatility impacting fixed income appetite and resulting in some outflows.
- Invesco Ltd (IVZ) faced net outflows of $6.3 billion in fundamental equity during the quarter, continuing pressure on fundamental equity flows.
- The company incurred a one-time noncash acceleration expense of $148 million related to changes in retirement criteria for long-term awards, impacting GAAP operating results.
- Service and distribution fees declined sequentially despite higher AUM levels, while distribution expenses increased, creating a drag on profitability.
- The liquidity business experienced outflows, with institutional clients shifting allocations due to changing interest rate dynamics.
Good morning and welcome to Invesco's third quarter earnings conference call. (Operator Instructions) As a reminder, today's call is being recorded.
Now like to turn the call over to Greg Ketron, Invesco's Head of Investor Relations. Sir, you may begin.
All right. Thanks, Fredrik, and to all of you joining us on Invesco's quarterly earnings call. In addition to today's press release, we have provided a presentation that covers the topics we plan to address. The press release and presentation are available on our website at invesco.com. This information can be found by going to the Investor Relations section of the website.
Our presentation today will include forward-looking statements and certain non-GAAP financial measures. Please review the disclosures on slide 2 of the presentation regarding these statements and measures as well as the appendix for appropriate reconciliations to GAAP.
Finally, Invesco is not responsible for and does not edit nor guarantee the accuracy of our
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