Invesco (NYSE:IVZ) Q4 2025 Earnings call January 27, 2026 09:00 AM ET Company ParticipantsAllison Dukes - CFOAndrew Schlossberg - CEOGreg Ketron - Head of Investor RelationsConference Call ParticipantsAlexander Blostein - AnalystBenjamin Budish - AnalystBrendan Hawkins - AnalystBrian Bedell - AnalystDaniel Fannon - AnalystGlenn Schorr - AnalystWilliam Katz - AnalystOperatorWelcome to Invesco's fourth quarter earnings conference call. All participants will be in listen-only mode until the question and answer ...

Invesco (NYSE:IVZ) Q4 2025 Earnings call January 27, 2026 09:00 AM ET Company ParticipantsAllison Dukes - CFOAndrew Schlossberg - CEOGreg Ketron - Head of Investor RelationsConference Call ParticipantsAlexander Blostein - AnalystBenjamin Budish - AnalystBrendan Hawkins - AnalystBrian Bedell - AnalystDaniel Fannon - AnalystGlenn Schorr - AnalystWilliam Katz - AnalystOperatorWelcome to Invesco's fourth quarter earnings conference call. All participants will be in listen-only mode until the question and answer ...

Financial Data and Key Metrics Changes - Invesco's net revenue grew by 6% in 2025, with record revenues from ETF and index investment capabilities increasing by 22% [10][11] - Operating margin improved by 230 basis points, with a 14% growth in operating income and a 19% increase in earnings per share compared to the previous year [11][12] - Total assets under management (AUM) reached $2.2 trillion, an increase of $45 billion or 2% from the previous quarter and $324 billion or 18% year-over-year [25][26] Business Line Data and Key Metrics Changes - ETF and index capabilities generated $630 billion in AUM, with net inflows of nearly $12 billion during the fourth quarter, reflecting an 8% annualized organic growth [14][15] - Fundamental equity revenue was flat compared to the prior year but increased by 4% from 2023, with $5.5 billion in net outflows overall in this segment [10][22] - Private markets platform saw $300 million in net inflows, driven by direct real estate strategies, with INCREF now totaling $4.7 billion in assets [19][21] Market Data and Key Metrics Changes - Revenue from Asian and EMEA regions combined increased by 13% for the year, contributing to overall growth [10] - The China joint venture reached a record-high AUM of $132 billion, with net long-term inflows of $8.9 billion, marking a 36% annualized organic growth rate [17][18] - The Canadian market is becoming increasingly concentrated, prompting a strategic partnership with CI Global Asset Management [5][6] Company Strategy and Development Direction - Invesco is focusing on a hybrid alpha investment platform to streamline operations and improve profitability, with completion expected by the end of 2026 [4][33] - The company aims to accelerate growth in its $130 billion private markets platform through strategic partnerships and innovative product offerings [6][9] - Invesco's strategy includes a commitment to enhancing shareholder returns, with a target payout ratio of around 60% for 2026 [40][41] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing strong net inflows and a diversified product offering as key strengths [12][42] - The company is focused on maintaining a disciplined expense management approach while investing in growth opportunities [11][30] - Management highlighted the importance of achieving first quartile investment performance as a priority for maintaining market share [24] Other Important Information - Invesco repurchased $1.5 billion in preferred stock in 2025, reducing outstanding preferred stock from $4 billion to $2.5 billion [27][40] - The company expects to see a $0.20 EPS benefit from the preferred stock repurchase once associated debt is repaid [27][39] - The effective tax rate for the quarter was 21%, with expectations to return to the 25%-26% range in the first quarter of 2026 [39] Q&A Session Summary Question: Capital return priorities and potential M&A considerations - Management discussed the focus on increasing share buybacks to $40 million and the potential for further preferred stock repurchases while prioritizing debt repayment [45][46] - M&A opportunities will be considered if they align with the company's growth strategy, but the focus remains on organic growth [48][49] Question: Implementation costs and future expense outlook - Management confirmed that implementation costs for the hybrid platform are expected to decrease over time, with further guidance to be provided as 2026 progresses [51][52] Question: Net revenue yield and its future impact - Management indicated that the addition of the QQQ ETF is expected to stabilize net revenue yield, with ongoing dynamics influencing future projections [55][56] Question: Private market strategy and branding considerations - The company aims to build a comprehensive product offering through partnerships while maintaining clear branding to avoid channel conflicts [66][68]