Company Overview - Invesco Mortgage Capital Inc. is a real estate investment trust focused on investing in, financing, and managing mortgage-backed securities and other mortgage-related assets [3] - The company is externally managed and advised by Invesco Advisers, Inc., a wholly-owned subsidiary of Invesco Ltd., a leading independent global investment management firm [3] Upcoming Financial Results - Invesco Mortgage Capital Inc. will announce its first quarter 2025 results on May 7, 2025, after market close [1] - A conference call and audio webcast to review these results will take place on May 8, 2025, at 9:00 a.m. ET, featuring key executives including the CEO, CIO, President, COO, and CFO [1] Participation Details - A presentation will be available on the company's website prior to the call [2] - Participants can join the call using the North America Toll-Free number 888-982-7409 or the International Toll number 1-212-287-1625, with the passcode "Invesco" [2] - An audio replay of the call will be available until May 22, 2025 [2]

Financial Data and Key Metrics Changes - Invesco Ltd. reported total assets under management (AUM) of $1.84 trillion, nearly flat compared to the end of Q4 2024, but $182 billion or 11% higher than Q1 2024 [47] - Adjusted diluted earnings per share increased by 33% to $0.44 for Q1 compared to $0.33 in the prior year [50] - Adjusted operating income rose by 18%, with operating margins expanding over 330 basis points to 31.5% [61] Business Line Data and Key Metrics Changes - The company generated $17.6 billion in long-term net asset inflows, representing a 5.3% annualized growth rate [9] - The global ETF and index platform recorded 13% annualized organic growth in Q1 [16] - Fundamental fixed income contributed $8 billion in net inflows, while the China JV and India added $2.2 billion [49][24] Market Data and Key Metrics Changes - The Asia Pacific and EMEA regions each accounted for $276 billion in AUM, generating $15 billion in net long-term inflows in Q1 [13] - Money market funds topped $7 trillion in the industry, indicating a shift in client sentiment towards caution [14] - The company observed strong client activity despite market volatility, with significant growth across channels and asset classes [15] Company Strategy and Development Direction - Invesco Ltd. aims to expand its footprint in private markets, particularly in the US wealth management sector, through partnerships with MassMutual and Barings [31] - The company is focused on delivering differentiated private credit-oriented income solutions and product structures [32] - The strategic partnership with MassMutual includes a $1 billion repurchase of preferred stock, enhancing balance sheet flexibility [35] Management's Comments on Operating Environment and Future Outlook - Management noted that investors are adopting a more defensive stance in capital deployment amid market volatility [108] - The diversified nature of Invesco's business is expected to help navigate the current operating environment and capture flows as clarity returns [110] - Positive organic flow growth was observed in China, despite heightened trade tensions impacting the domestic economy [25] Other Important Information - The company plans to continue share repurchases and has increased its quarterly common stock dividend from $0.205 to $0.21 per share [65] - The partnership with MassMutual is expected to facilitate discussions regarding future repurchases of the remaining $3 billion of preferred stock [42] Q&A Session Summary Question: Strategic update on product and distribution opportunities with Barings and MassMutual - Management indicated that the initial phases will focus on private credit opportunities, with a few capabilities set to launch soon [70] Question: Comments on the preferred stock repurchase agreement - Management highlighted the strength of the partnership with MassMutual and the potential for future repurchases based on cash flow and market conditions [76] Question: Economic participation in the partnership with Barings - The partnership will involve shared management fee revenues, with Invesco as the distributor and product operator [120] Question: Differences in local regions due to global tariff negotiations - Management noted that the local profile in Asia Pacific and EMEA has been beneficial, with better asset flow resilience compared to the US [127] Question: Positioning in the retirement market for alternatives - Invesco is focused on creating products for the retirement market, leveraging existing relationships with plan sponsors and consultants [135]

Invesco Asset Management (India) For quarter ending March 2025 Invesco overview 2 We are a leading independent global investment management firm At Invesco, we drive sustainable growth by delivering capabilities that build enduring partnerships and create better outcomes for our clients. Established in 1935, we have: UK & Ireland Continental Europe US & Canada Middle East Asia Australia Invesco Ltd. AUM of $1,846.0 billion as of December 31, 2024. Locations shown indicate offices hosting Portfolio Manager, ...

Group 1 - The article discusses the author's journey into investing, starting in high school in 2011, focusing on REITs, preferred stocks, and high-yield bonds, indicating a long-standing interest in markets and the economy [1] - The author has recently adopted a strategy that combines long stock positions with covered calls and cash secured puts, emphasizing a fundamental long-term investment approach [1] - The author primarily covers REITs and financials on Seeking Alpha, with occasional articles on ETFs and other stocks influenced by macro trade ideas [1]

Core Viewpoint - Invesco reported strong first-quarter 2025 adjusted earnings, exceeding estimates and showing significant year-over-year growth, alongside a strategic partnership aimed at enhancing its private credit offerings [1][6]. Financial Performance - Adjusted earnings for Q1 2025 were 44 cents per share, surpassing the Zacks Consensus Estimate of 39 cents, and reflecting a 33.3% increase from the previous year [1]. - Adjusted net revenues reached $1.11 billion, up 5.3% year-over-year, beating the consensus estimate of $1.10 billion [3]. - Net income attributable to common shareholders was $171.1 million or 38 cents per share, compared to $141.5 million or 31 cents per share in the prior-year quarter [2]. Assets Under Management (AUM) - As of March 31, 2025, AUM was $1.84 trillion, representing an 11% increase year-over-year, with average AUM at $1.88 trillion, up 16.6% [4]. - The company experienced long-term net inflows of $17.6 billion during the reported quarter [4]. Operating Expenses - Adjusted operating expenses were $759.2 million, showing a slight year-over-year increase [3]. - The adjusted operating margin improved to 31.5%, up from 28.2% a year ago [3]. Strategic Initiatives - Invesco announced a collaboration with Barings, MassMutual's global asset management subsidiary, to enhance private credit solutions [6]. - MassMutual plans to support this initiative with an initial investment of $650 million [7]. - Invesco intends to repurchase approximately $1 billion of its Series A preferred stock, which is expected to be accretive to earnings starting in the second half of 2025 [8]. Balance Sheet - As of March 31, 2025, cash and cash equivalents were $821.7 million, down from $986.5 million a year earlier, while long-term debt stood at $964.8 million [5].

Core Insights - Invesco reported $1.11 billion in revenue for Q1 2025, a year-over-year increase of 5.3%, with an EPS of $0.44 compared to $0.33 a year ago, indicating a positive trend in earnings performance [1] - The revenue was slightly below the Zacks Consensus Estimate by -0.06%, while the EPS exceeded the consensus estimate by +12.82% [1] Financial Performance Metrics - Invesco's assets under management (AUM) for ETFs and Index stood at $491 billion, slightly above the average estimate of $490 billion [4] - Total average AUM was reported at $1,880.8 billion, matching the average estimate [4] - AUM for Fundamental Fixed Income was $291.9 billion, slightly below the estimated $294.12 billion [4] - AUM for Private Markets was $131.3 billion, in line with the estimate of $131.22 billion [4] - AUM for Multi-Asset/Other was $59.4 billion, slightly above the estimate of $59.1 billion [4] - AUM for Global Liquidity was $200.2 billion, exceeding the average estimate of $198 billion [4] - AUM for QQQs was $297.2 billion, closely matching the estimate of $297.18 billion [4] - Average AUM for ETFs & Index was $501.5 billion, surpassing the estimate of $494.08 billion [4] - Average AUM for Fundamental Equities was $276.6 billion, above the estimate of $262.19 billion [4] Revenue Breakdown - Operating revenues from Other revenues were $54.50 million, exceeding the estimate of $52.75 million, representing an increase of +11.7% year-over-year [4] - Service and distribution fees were reported at $370.90 million, slightly below the average estimate of $381.99 million, reflecting a -1.6% change year-over-year [4] - Performance fees were $3.50 million, significantly above the average estimate of $5.15 million, showing a remarkable increase of +337.5% year-over-year [4] Stock Performance - Invesco's shares have returned -21.4% over the past month, underperforming the Zacks S&P 500 composite, which saw a decline of -8.9% [3] - The stock currently holds a Zacks Rank 5 (Strong Sell), indicating potential underperformance in the near term [3]

Company Performance - Invesco reported quarterly earnings of $0.44 per share, exceeding the Zacks Consensus Estimate of $0.39 per share, and up from $0.33 per share a year ago, representing an earnings surprise of 12.82% [1] - The company posted revenues of $1.11 billion for the quarter ended March 2025, slightly missing the Zacks Consensus Estimate by 0.06%, but up from $1.05 billion year-over-year [2] - Over the last four quarters, Invesco has surpassed consensus EPS estimates three times and topped consensus revenue estimates two times [2] Stock Outlook - Invesco shares have declined approximately 28.7% since the beginning of the year, compared to a 12.3% decline in the S&P 500 [3] - The current consensus EPS estimate for the upcoming quarter is $0.40 on revenues of $1.09 billion, and for the current fiscal year, it is $1.69 on revenues of $4.42 billion [7] - The estimate revisions trend for Invesco is currently unfavorable, resulting in a Zacks Rank 5 (Strong Sell), indicating expected underperformance in the near future [6] Industry Context - The Financial - Investment Management industry, to which Invesco belongs, is currently ranked in the bottom 7% of over 250 Zacks industries, suggesting a challenging environment [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact stock performance [5]

Core Insights - Invesco Ltd. has entered into an agreement with MassMutual to repurchase $1 billion of its $4 billion outstanding Series A Preferred Stock, which is expected to close in May 2025 and will be funded through debt financing [1] - The repurchase is anticipated to be earnings accretive starting in the second half of 2025, enhancing Invesco's balance sheet flexibility while allowing for growth investments and shareholder returns [1] - MassMutual remains a significant shareholder in Invesco, holding approximately 18.2% of common shares, and has previously committed over $3 billion in seed and co-investment capital [1] Partnership Developments - Invesco and Barings, a subsidiary of MassMutual, have announced a strategic product and distribution partnership aimed at U.S. Wealth channels, with MassMutual committing $650 million to support this initiative [2][3] - The partnership will focus on providing differentiated private credit solutions, leveraging both firms' expertise in global private credit and public fixed income [3][4] - Over the long term, the collaboration aims to meet clients' income needs across various investment vehicles in the U.S. Wealth market [4] Strategic Goals - The partnership is expected to enhance Invesco's ability to deliver unique income solutions for the U.S. Wealth segment, while also improving its overall leverage profile and financial flexibility [5] - MassMutual's collaboration with Invesco and Barings is designed to strengthen its global asset management capabilities and expand product and distribution opportunities [6] - Barings aims to scale its alternative asset capabilities in the U.S. wealth market, partnering with Invesco to enhance access to private markets for wealth investors [6]

Financial Performance - Invesco reported a diluted EPS of $0.38 and an adjusted diluted EPS of $0.44 for Q1 2025[2]. - Operating income increased by 18% year-over-year, with an operating margin of 18.1% and an adjusted operating margin of 31.5%[4][10]. - Total operating revenues for Q1 2025 were $1,529.2 million, a decrease of 4.0% from Q4 2024 and an increase of 3.7% from Q1 2024[37]. - Net income attributable to Invesco Ltd. for Q1 2025 was $171.1 million, down 18.3% from Q4 2024 but up 20.9% from Q1 2024[37]. - Adjusted operating income for Q1 2025 was $349.5 million, with an adjusted operating margin of 31.5%[42]. - Diluted earnings per share (EPS) for Q1 2025 was $0.38, a decrease of 17.4% from Q4 2024, but an increase of 22.6% from Q1 2024[44]. - The company reported a 12.0% increase in net income from Q4 2024 to Q1 2025, reaching $267.3 million[37]. - Adjusted net income attributable to Invesco Ltd. for Q1 2025 was $200.5 million, compared to $237.3 million in Q4 2024[44]. Assets Under Management (AUM) - The company achieved $17.6 billion in net long-term inflows for the quarter, with $1.8 trillion in ending AUM[5][6]. - Total Assets Under Management (AUM) at the end of Q1 2025 was $1,844.8 billion, a slight decrease of 0.1% from Q4 2024[48]. - Ending long-term AUM for Q1 2025 was $1,311.2 billion, a slight increase of 0.8% from $1,301.1 billion in Q4 2024[48]. - Average long-term AUM increased by 1.3% to $1,326.8 billion in Q1 2025 from $1,310.1 billion in Q4 2024[48]. - Average AUM increased by 3.1% during the first quarter, while ending AUM was flat compared to the previous quarter[8][10]. Cash and Dividends - A quarterly common stock dividend of $0.21 per share was announced, reflecting a strong cash position[5][29]. - Invesco repurchased 1.5 million common shares for $25 million during the quarter and announced a $1 billion repurchase of preferred stock held by MassMutual[5][27]. - Cash and cash equivalents at the end of the period were $1,873.4 million, an increase from $1,425.5 million at the end of the previous quarter[59]. - Total assets as of March 31, 2025, were $28,143.6 million, up from $27,008.9 million at the end of the previous quarter[62]. Market Performance and Flows - Long-term inflows for Q1 2025 were $122.0 billion, down 8.8% compared to $133.7 billion in Q4 2024[48]. - Net long-term flows decreased by 31.3% to $17.6 billion in Q1 2025 from $25.6 billion in Q4 2024[48]. - Total net flows in Q1 2025 were $32.6 billion, down 46.5% from $60.9 billion in Q4 2024[48]. - Total net flows for the three months ended March 31, 2025, were $11.5 billion, a decrease of 23.8% compared to $15.1 billion in the previous quarter[53]. - Long-term inflows increased to $60.6 billion, up 15.2% from $52.6 billion in the previous quarter[53]. - Long-term outflows decreased slightly to $59.1 billion, down 5.6% from $62.6 billion in the previous quarter[53]. - Net long-term flows for the Americas were negative at $(6.5) billion, while EMEA saw positive net flows of $7.8 billion[53]. Expenses and Tax Rate - Total operating expenses for Q1 2025 were $1,251.9 million, a decrease of 2.3% from Q4 2024[37]. - Adjusted operating expenses for Q1 2025 were $759.2 million, a decrease from $767.1 million in Q4 2024[45]. - Adjusted employee compensation for Q1 2025 was $490.3 million, up from $485.1 million in Q4 2024[45]. - The effective tax rate was 22.5% in Q1 2025, down from 24.8% in Q4 2024[14][18]. Strategic Initiatives - The company announced a new strategic partnership with MassMutual, including a $650 million initial investment to enhance private wealth offerings[5]. - The company emphasized the importance of non-GAAP measures for assessing ongoing operational performance and making comparisons to competitors[39]. Market Gains and Losses - Market gains and losses in Q1 2025 resulted in a loss of $42.2 billion, a significant increase compared to a loss of $2.5 billion in Q4 2024[48]. - Market gains and losses for the period resulted in a loss of $4.1 billion, a significant improvement from a loss of $17.0 billion in the previous quarter[53]. - The company reported a significant foreign currency translation gain of $7.4 billion in Q1 2025, compared to a loss of $20.5 billion in Q4 2024[48].

Core Viewpoint - Invesco (IVZ) is expected to report a year-over-year increase in both earnings and revenues for the first quarter of 2025, with results influenced by a decline in adjusted expenses and higher adjusted net revenues [1][10]. Financial Performance - Invesco's adjusted earnings in the last reported quarter exceeded the Zacks Consensus Estimate, supported by a decrease in adjusted expenses and an increase in assets under management (AUM) [1]. - The preliminary total AUM as of March 31, 2025, was $1.84 trillion, remaining stable sequentially [5]. - The Zacks Consensus Estimate for Invesco's earnings is 39 cents, reflecting an 18.2% increase from the previous year, while the sales estimate is $1.1 billion, indicating a 4.9% rise [10]. Revenue Estimates - Investment management fees are projected to decline to $1.11 billion, a decrease of 1.5% from the last quarter [5]. - Performance fees are expected to drop significantly to $7 million, a 79.4% decrease from the prior quarter [6]. - Service and distribution fees are estimated to remain unchanged at $381 million, while other revenues are expected to rise by 3.9% to $53 million [6]. Cost Management - Invesco's cost-saving initiatives are anticipated to enhance efficiency, but rising compensation and marketing costs may negatively impact overall expenses [7]. - Management expects one-time implementation costs of the Alpha initiative to be around $10-15 million in Q1 2025, leading to a modest increase in overall expenses [7]. Earnings Surprise History - Invesco has a mixed earnings surprise history, surpassing the Zacks Consensus Estimate in two of the last four quarters, meeting once, and lagging once, with an average surprise of -0.97% [2]. - The current Earnings ESP for Invesco is -0.64%, and it holds a Zacks Rank of 4 (Sell), indicating low chances of beating the consensus estimate this time [8][9].