Invesco Ltd. (IVZ) Bundle
A Brief History of Invesco Ltd.
Invesco Ltd. is a global investment management firm founded in 1935, headquartered in Atlanta, Georgia. Over the years, the company has expanded its footprint through various mergers and acquisitions, significantly enhancing its asset management capabilities.
Key Milestones
- 1935: Invesco was established as a mutual fund company.
- 1980s: Expanded internationally, opening offices in Europe and Asia.
- 2000: Merged with AIM Management Group, increasing its product offerings.
- 2010: Acquired the investment management business of Morgan Stanley, adding scale to its operations.
- 2020: Launched new sustainable investment strategies in response to market demand.
Financial Performance as of 2024
As of September 30, 2024, Invesco reported the following financial results:
| Financial Metrics | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Operating Revenues | $1,515.4 million | $1,442.0 million | $4,474.0 million | $4,303.0 million |
| Net Income | $103.6 million | $168.7 million | $513.7 million | $498.9 million |
| Earnings per Share (EPS) | $0.12 | $0.29 | $0.72 | $0.90 |
| Total Assets | $27,502.6 million | $28,933.8 million | $27,502.6 million | $28,933.8 million |
| Total Equity | $15,326.1 million | $15,170.3 million | $15,326.1 million | $15,170.3 million |
Assets Under Management (AUM)
Invesco's AUM has fluctuated over the years, reflecting market conditions and investor sentiment. As of September 30, 2024, the AUM was reported at:
| Region | AUM (in billions) |
|---|---|
| Americas | $985.3 |
| Europe, Middle East, and Africa (EMEA) | $832.2 |
| Asia-Pacific (APAC) | $196.8 |
| Total AUM | $2,014.3 |
Recent Developments
Invesco has focused on enhancing its investment offerings, particularly in sustainable investing and technology-driven asset management solutions. The company's commitment to ESG principles is evident in its new product launches and strategic partnerships aimed at attracting environmentally conscious investors.
Shareholder Returns
Invesco has maintained a consistent dividend policy. As of October 21, 2024, the company declared:
- A cash dividend of $0.205 per common share, payable on December 3, 2024.
- A preferred dividend of $14.75 per preferred share, payable on December 2, 2024.
Invesco's focus on returning capital to shareholders is reflected in its share repurchase program, wherein the company repurchased 1.5 million common shares for $25.0 million during the third quarter of 2024.
Debt Management
As of September 30, 2024, Invesco reported a carrying value of debt at:
- $890.3 million, down from $1,489.5 million at December 31, 2023.
- Weighted average cost of debt at 4.70% for the nine months ended September 30, 2024.
Invesco continues to manage its debt prudently, ensuring compliance with financial covenants while maintaining a strong balance sheet.
A Who Owns Invesco Ltd. (IVZ)
Major Shareholders
As of September 30, 2024, the ownership structure of Invesco Ltd. (IVZ) is characterized by significant institutional holdings. The largest shareholder is Massachusetts Mutual Life Insurance Company (MassMutual), which owns approximately 18.1% of the common stock and substantially all of the $4.0 billion in perpetual, non-cumulative preferred shares.
Institutional Ownership
Institutional investors hold a substantial portion of Invesco's equity, reflecting confidence in the company's long-term strategy. The following table provides a breakdown of institutional ownership:
| Institution | Ownership (% of Common Shares) | Shares Owned |
|---|---|---|
| MassMutual | 18.1% | ~102.2 million |
| Vanguard Group | 8.6% | ~48.8 million |
| BlackRock | 6.9% | ~39.1 million |
| State Street Corporation | 4.3% | ~24.3 million |
| Other Institutions | 62.1% | ~350 million |
Common and Preferred Shares
Invesco has a total of 566.1 million common shares issued as of September 30, 2024, with 116.7 million shares held in treasury. The preferred shares, all held by MassMutual, are significant as they provide the holder with specific voting rights and dividends.
Voting Rights and Board Representation
Due to the significant stake held by MassMutual, it has customary minority shareholder rights, including representation on Invesco’s Board of Directors. This relationship is critical in influencing corporate governance and strategic decisions within Invesco.
Recent Financial Performance
Invesco's financial performance has been stable, with a net income attributable to Invesco Ltd. of $55.0 million for the three months ended September 30, 2024. The company declared a cash dividend of $0.205 per common share on October 21, 2024, payable on December 3, 2024.
Conclusion on Ownership Structure
The ownership structure of Invesco Ltd. reflects a mix of institutional and individual shareholders, with a notable concentration of power in the hands of MassMutual. This dynamic influences both the governance and strategic direction of the company.
Invesco Ltd. (IVZ) Mission Statement
Company Overview
Invesco Ltd. (IVZ) is a global investment management firm dedicated to delivering superior investment performance and client service. The company's mission statement emphasizes the commitment to helping clients achieve their financial goals through a diverse range of investment solutions.
Mission Statement
Invesco's mission is to provide a range of investment solutions that meet the needs of clients while maintaining a strong focus on performance, innovation, and client service. The firm aims to attract and retain investment talent, enhance its global investment capabilities, and ensure that clients receive the highest standards of service.
Core Values
- Client Focus: Prioritizing the needs and goals of clients in all investment decisions.
- Integrity: Upholding ethical standards and transparency in all operations.
- Innovation: Continuously seeking new and improved investment solutions.
- Collaboration: Working together across teams and regions to achieve the best outcomes for clients.
Financial Performance
As of September 30, 2024, Invesco reported the following financial metrics:
| Metric | Value |
|---|---|
| Net Income | $55.0 million |
| Earnings Per Share (Diluted) | $0.12 |
| Total Operating Revenues | $1,515.4 million |
| Total Operating Expenses | $1,414.9 million |
| Total Equity Attributable to Invesco Ltd. | $14,754.3 million |
| Cash and Cash Equivalents | $1,044.9 million |
Investment Solutions
Invesco offers a broad spectrum of investment products and services, including:
- Equity Funds
- Fixed Income Funds
- Multi-Asset Solutions
- Real Estate Investments
- Exchange-Traded Funds (ETFs)
Assets Under Management (AUM)
As of September 30, 2024, Invesco's total AUM was reported as follows:
| Region | AUM (in billions) |
|---|---|
| Americas | $1,032.3 |
| APAC | $763.3 |
| EMEA | $1,487.3 |
| Total AUM | $1,795.6 |
Dividends
Invesco has a history of returning capital to shareholders through dividends. For the third quarter of 2024, the company declared:
- Preferred Dividend: $14.75 per share
- Common Dividend: $0.205 per share
Financial Ratios
As of September 30, 2024, Invesco's financial ratios were as follows:
| Ratio | Value |
|---|---|
| Leverage Ratio | 0.26:1.00 |
| Interest Coverage Ratio | 23.96:1.00 |
Conclusion
Invesco Ltd. remains committed to its mission of providing exceptional investment solutions and achieving superior performance for its clients, backed by strong financial metrics and a diverse range of investment offerings.
How Invesco Ltd. (IVZ) Works
Company Overview
Invesco Ltd. is a global investment management firm that offers a wide range of investment strategies and solutions to its clients. The firm operates across various asset classes including equities, fixed income, alternatives, and multi-asset investments.
Financial Performance
For the nine months ended September 30, 2024, Invesco reported total operating revenues of $4,474.0 million, an increase from $4,303.0 million for the same period in 2023. The breakdown of operating revenues is as follows:
| Revenue Type | Q3 2024 (in millions) | Q3 2023 (in millions) |
|---|---|---|
| Investment Management Fees | $3,215.0 | $3,102.7 |
| Service and Distribution Fees | $1,098.9 | $1,030.0 |
| Performance Fees | $12.3 | $27.2 |
| Other Revenues | $147.8 | $143.1 |
Operating Expenses
Invesco's total operating expenses for the nine months ended September 30, 2024, were $3,953.6 million, up from $3,662.0 million in 2023. Major components of operating expenses included:
| Expense Type | Q3 2024 (in millions) | Q3 2023 (in millions) |
|---|---|---|
| Employee Compensation | $1,550.4 | $1,417.0 |
| Third-party Distribution, Service and Advisory | $1,499.0 | $1,365.8 |
| General and Administrative | $459.7 | $402.9 |
| Amortization of Intangible Assets | $33.9 | $38.5 |
Net Income and Earnings Per Share
Net income attributable to Invesco Ltd. for the nine months ended September 30, 2024, was $328.7 million, compared to $408.6 million for the same period in 2023. The earnings per common share (EPS) were:
| Measure | Q3 2024 | Q3 2023 |
|---|---|---|
| Basic EPS | $0.72 | $0.90 |
| Diluted EPS | $0.72 | $0.89 |
Assets Under Management (AUM)
As of September 30, 2024, Invesco reported total AUM of $1,795.6 billion, compared to $1,487.3 billion as of September 30, 2023. The breakdown of AUM by region is as follows:
| Region | AUM (in billions) |
|---|---|
| Americas | $1,227.2 |
| Asia-Pacific (APAC) | $568.4 |
| Europe, Middle East and Africa (EMEA) | $1,795.6 |
Cash Flow Statement
For the nine months ended September 30, 2024, Invesco's cash flows from operating activities were $873.1 million, compared to $586.5 million in 2023. Key cash flow components include:
| Cash Flow Type | Q3 2024 (in millions) | Q3 2023 (in millions) |
|---|---|---|
| Net Cash Provided by Operating Activities | $873.1 | $586.5 |
| Net Cash Provided by Investing Activities | $85.3 | $17.3 |
| Net Cash Used in Financing Activities | $(1,269.1) | $(475.1) |
Debt and Leverage Ratios
As of September 30, 2024, Invesco's total debt was $890.3 million, with a weighted average cost of debt at 4.70%. The leverage ratio was reported at 0.26:1.00, and the interest coverage ratio was 23.96:1.00.
Dividends
Invesco declared a cash dividend of $0.205 per common share for the third quarter of 2024, payable on December 3, 2024. The preferred dividend declared was $14.75 per preferred share for the period from September 1, 2024, through November 30, 2024.
Conclusion
As of September 30, 2024, Invesco continues to navigate the investment management landscape with diversified revenue streams, a solid asset base, and prudent financial management.
How Invesco Ltd. (IVZ) Makes Money
Revenue Sources
Invesco Ltd. generates revenue primarily through several key streams:
- Investment Management Fees: For the nine months ended September 30, 2024, these fees amounted to $3,215.0 million, up from $3,102.7 million in the same period of 2023, reflecting a 3.6% increase.
- Service and Distribution Fees: Totaled $1,098.9 million for the nine months ended September 30, 2024, compared to $1,030.0 million in 2023, marking a 6.7% increase.
- Performance Fees: These were $12.3 million for the nine months ended September 30, 2024, down from $27.2 million in 2023, indicating a 54.8% decrease.
- Other Revenues: Increased to $147.8 million in 2024 from $143.1 million in 2023, a growth of 3.3%.
| Revenue Source | Q3 2024 (in millions) | Q3 2023 (in millions) | Change (%) |
|---|---|---|---|
| Investment Management Fees | $1,100.5 | $1,041.3 | 5.7% |
| Service and Distribution Fees | $360.3 | $353.5 | 1.9% |
| Performance Fees | $2.8 | $2.0 | 40.0% |
| Other Revenues | $51.8 | $45.2 | 14.6% |
Assets Under Management (AUM)
As of September 30, 2024, Invesco's average AUM reached $1,742.0 billion, compared to $1,528.7 billion for the same period in 2023, reflecting strong market performance and net inflows despite a shift towards lower yield products.
The following table summarizes the AUM and net flows:
| Period | AUM (in billions) | Net Long-term Flows (in billions) | Net Flows in Money Market Funds (in billions) |
|---|---|---|---|
| Q3 2024 | $1,795.6 | 39.5 | (1.7) |
| Q3 2023 | $1,487.3 | 3.5 | 7.0 |
Operating Expenses
Operating expenses for Invesco Ltd. for the nine months ended September 30, 2024, were reported at $3,953.6 million, compared to $3,662.0 million in 2023, indicating an increase of 8.0%.
| Expense Category | Q3 2024 (in millions) | Q3 2023 (in millions) | Change (%) |
|---|---|---|---|
| Third-party Distribution, Service and Advisory | $1,499.0 | $1,365.8 | 9.8% |
| Employee Compensation | $1,550.4 | $1,417.0 | 9.4% |
| Marketing | $57.6 | $61.9 | (6.9%) |
| General and Administrative | $459.7 | $402.9 | 13.9% |
Net Income and Earnings Per Share (EPS)
Net income attributable to Invesco Ltd. for the nine months ended September 30, 2024, was $328.7 million, compared to $408.6 million in 2023, a decrease of 19.6%. The diluted EPS for the same period was $0.72, down from $0.89.
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Income (in millions) | $103.6 | $168.7 | (38.6%) |
| Diluted EPS | $0.12 | $0.29 | (58.6%) |
Joint Ventures and Other Contributions
Invesco's joint venture, Invesco Great Wall, contributed $76.9 million in net revenues for the three months ended September 30, 2024, compared to $90.7 million in 2023, showing a decrease of 15.2%.
Overall, Invesco Ltd. continues to adapt its business model amid changing market conditions, focusing on maintaining and growing its AUM while managing operational efficiency.
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Article updated on 8 Nov 2024
Resources:
- Invesco Ltd. (IVZ) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Invesco Ltd. (IVZ)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Invesco Ltd. (IVZ)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.