Financial Data and Key Metrics Changes - Invesco reported a record AUM of $2.1 trillion, which is $123 billion or 6% higher than the previous quarter and $329 billion or 18% higher year-over-year [24] - Average long-term AUM increased by 9% sequentially and 16% year-over-year to $1.46 trillion [24] - Net revenues for the third quarter were $1.2 billion, an increase of $82 million compared to the same quarter last year, primarily driven by higher investment management fees [30] Business Line Data and Key Metrics Changes - The ETF platform reached a milestone of $1 trillion in AUM, with an annualized organic growth of 15% [14] - Fundamental fixed income garnered over $4 billion in net long-term inflows, with total fixed income inflows reaching nearly $13 billion when including ETFs [16] - The China joint venture achieved a record AUM of $122 billion, reflecting a 16% increase over the last quarter, with net long-term inflows of $8.1 billion [17] Market Data and Key Metrics Changes - Nearly 40% of long-term AUM is now from clients outside the U.S., with two-thirds of net inflows this quarter coming from AMEA and Asia-Pacific regions [13] - The U.S. wealth management SMA platform reached nearly $34 billion in AUM, with an annualized organic growth rate of 19% [17] - The company experienced strong demand for fixed income products, particularly in Asia, driving net inflows [16] Company Strategy and Development Direction - Invesco is focused on capital management and has repaid approximately 25% of the term loans used for a $1 billion preferred stock repurchase, enhancing earnings accretion [5] - The company is implementing a hybrid investment platform to streamline operations and improve investment performance, expected to be completed by the end of 2026 [7][32] - A significant growth initiative is underway to modernize the QQQ ETF structure, with strong shareholder participation in the proposals [11] Management's Comments on Operating Environment and Future Outlook - Management noted strong momentum in the market, with key indices reaching new highs and increased investor confidence following a Fed rate cut [12] - The company is optimistic about future growth opportunities, particularly in private markets and the evolving demand for income-oriented solutions [9] - Management expressed confidence in the ongoing improvements in investment performance, which is crucial for maintaining market share [22] Other Important Information - The sale of IntelliFlow is expected to generate approximately $100 million in net cash, with potential future earnouts of up to $65 million [8] - The company anticipates closing the transaction for a majority interest in its Indian business, expecting cash proceeds of $140 million to $150 million [35] - The effective non-GAAP tax rate for the third quarter was significantly impacted by a favorable resolution of a tax matter, resulting in an 11.2% rate [34] Q&A Session Summary Question: Update on QQQ shareholder vote and marketing expenses - Management is pleased with the progress of the QQQ shareholder vote, noting overwhelming support for the fee change, and clarified that reclassifying marketing expenses does not impact operating income [41][42] Question: Use of proxy voting firm and expense classification - The proxy solicitation firm is considered a marketing expense of the fund, and management does not foresee it affecting Invesco's operating expenses [45][46] Question: Fixed income flows and market outlook - Management reported continued strength in fixed income flows, with over $30 billion in platform-wide fixed income flows, and noted some softening in bank loan flows [55][56] Question: Details on divestitures and capital return priorities - Proceeds from the sale of the Indian business and IntelliFlow will enhance balance sheet flexibility, with a focus on returning 60% of capital to shareholders [62][63] Question: Expense growth and Alpha platform integration - Management expects implementation costs for the Alpha platform to remain high through 2026, with a focus on managing fixed expenses effectively [68][70]