Invesco(US:IVZ)2025-09-09 12:32Summary of Invesco Conference Call Company Overview - Company: Invesco - Event: Barclays Global Financial Services Conference - Key Speakers: Andrew Schlossberg (President and CEO), Allison Dukes (CFO) Market Observations - Investor Appetite: Post-spring volatility, investor appetite has strengthened with net positive flows of over $11 billion in August, marking one of the best months on record for Invesco [5][6] - AUM Growth: Assets under management (AUM) have shown significant growth, with flows in Q3 surpassing the entirety of Q2 and nearing Q1 levels [5][6] Business Strategy and Value Creation - Focus on High-Quality Outcomes: Approximately 50% of active equity assets are now in the top quartile of peers, up from 25% a few years ago [7] - Scaling Strategies: Emphasis on scaling high-demand strategies such as ETFs, SMAs, and private wealth management [8] - International Markets: 40% of long-term assets are from international markets, contributing to 80% of record long-term flows, particularly from Asia and Europe [9] Financial Performance - Operating Income: Increased by 10% in the first half of the year, with operating margins up 200 basis points compared to the previous year [10] - IntelliFlow Sale: Sold to Carlyle for up to $200 million, with a loss on sale expected to be between $40 to $45 million, which will not impact taxable income [11][12][13] Capital Management - Balanced Capital Priorities: Focus on investing in business, maintaining a strong balance sheet, and returning capital to shareholders [14][15] - Shareholder Returns: $1 billion repurchase of preferred shares and a 2.5% increase in dividends announced [16][17] ETF Strategy - Fee Structure Changes: Filed to convert Invesco QQQ ETF to an open-end structure, expected to benefit investors with lower fees [19][20] - Active ETFs: Currently have 31 active ETFs, with plans to expand into equity strategies [22][24] Private Markets and Real Estate - Increv Performance: Launched two years ago, now at $4 billion AUM, showing strong demand for real estate credit [31] - Private Markets Complex: Approximately $130 billion in private markets, with a focus on wealth management [33] International Business - Positive Flows: 40% of long-term assets from outside North America, with 80% of net flows coming from international markets [39][40] - China and Japan Growth: Strong demand in China with high AUM and positive flows, while Japan has seen growth from $30 billion to $85 billion in assets over five years [44][46][47] Technology and Innovation - Integration with State Street Alpha: Transitioning equities platform expected to be completed by the end of 2026, aimed at simplifying operations [52][54] - AI Utilization: Investing in AI to improve efficiency across various departments [60][61] - Blockchain and Tokenization: Exploring opportunities in digital assets and tokenization for future product creation [63] Conclusion - Invesco is strategically positioned for growth with a focus on high-quality investment outcomes, international expansion, and innovative technology integration. The company is actively managing capital to enhance shareholder value while navigating market dynamics effectively.