Invesco (IVZ) 23 Apr 202020 Q1 Earnings call transcript

Welcome to Invesco’s first quarter results conference call. All participants will be in a listen-only mode until the question and answer session. At that time, to ask a question, press star, one. Today’s conference is being recorded.

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Colin turn Marty the of Institutional Flanagan, Starr, Greg Financial Managing to speakers to Invesco; Senior and like Director McGreevey, Head Chief today: Managing of Schlossberg, for President Officer; Director Private I’d Markets; over of Investments. Senior call to your Loren and Andrew Now Head Senior Managing Global, and Meadows, Director, and and CEO Americas;

may you begin. Flanagan, Mr.

I’m just talking very joined to bulk Allison August spend Starr Andrew over CFO minutes to Vice the the Thanks Americas, business, Greg about will X, as will Invesco institutional as and and new Loren role a quarter. has the also going for thanks will of and Colin about especially Dukes, and joined Senior talking introduce the also the join I’ll joining. be about talk who on Loren CFO when much, questions, everybody us time the and spend about in Deputy Director results. the taking talk Chairman. he’s environment on few Managing pleased will takes of the for

can and call along I we’re and in the the as presentation not that’s from the using you’re website. environment, imagine you different the same will taking this also welcome locations, follow room in that note to on available

business any intensely highly and you families been colleagues serving robustly operating and their turbulent in way during healthy to with we’ve challenging on employees safe this I’ll disciplined families just remain clients First, engage I environment. you, tell and possible and continuing a your hope these unprecedented, protecting them in while times. our and focused our

the my and time affected been The the working our where testament outcomes China to COVID point is from was outstanding, from business the it reached operating home. literally colleagues weeks Several been dealing of in effect ago, of XX% global which workforce platform. of we a We’ve our first with in February. operating our strength the have

virtual with in said, in our this period. working interactions engaged I permanently been no which the interact been any we around and forward. highly with operate We’ve during crisis effective, of have had them will digital clients Despite way incredibly necessary this start experience world, with remote since doubt clients as the environment, and this clients how of our thousands the change and going we’ve supporting

years Financial with pressures multi-capability global by demand client and the multi-channel, ahead. with the will coronavirus presented where operating will firms [indiscernible] global the scale in only grow trends

including areas growth capabilities, a leading range China, when key platform. our wealth and discipline equity, us presence the digital now we high results alternative have to decade, fixed the capabilities, in well record equity, of business [indiscernible] in [indiscernible] to the franchise, leading our leading future, our have our international broad platform us our and had approximately diversified macro a views XX% act achieve conviction key of For with on past look XXXX. in operating emerging you [indiscernible] markets that we’ve global industry and of helped income ahead strong global ETF positioned trends Today,

JV, quarter, only [indiscernible] of results quarter, capabilities during and markets, the reflected of diverse emerging institutional, areas stable for with client nearly past outflows demand, including new the investment clients’ inflows in position us long-term current $X in Long-term were continuing to which extreme number to ETFs while the capabilities years remained over high efforts Our The China manage meet total our to of and our have flows a strong [indiscernible] with through the funds, money in very needs. income volatility, strong crisis number market quarter resulting consolidated in increased the a and income capabilities. international record performance during in fixed particular. Despite resilience a would $XX.X a the equities, global strength billion. our net employees, breadth fixed XX% billion, placed in the our of of the our of and include relationships, operating

a significant light we In the priority to ours Last flexibility key a and financial scale from strength efficiencies in operating shareholders. $XXX our transaction, as of and for This operating we was clients million target of our long-term captured of entered ahead of supporting to schedule. current creating the operating the environment, strength Oppenheimer a ensure is continue of position year, achievement post benefit [indiscernible] XXXX. we

while average $XX provided million savings number relative provide areas. previously expense includes in the to the executing guidance Loren quarterly and actions we’ve XXXX, as this later [indiscernible] start been base of call. an to We flexibility on creating COVID-XX strength variable in of the our uncertain in create detail further position. expense these expense will across for we’d in roughly operating a our the working see Since crisis, liquidity to environment discretionary more compensation

experience operating tactical Importantly, these term confident the experience that and to started further program I’m of the platform, beyond with [indiscernible]. responses, and leverage building on drive Oppenheimer record efficiencies we’re to team our integration scale and the the we short of track into the our

it’s period, believe In a few market addition expense this let to to these highlight during and measures, maintain imperative uncertain flexibility me those. of we’ve financial

of to estate our and across continues investments results, the strength partnership capabilities. may yield platform. alternative million of $XXX ongoing the with our follow about for and including MassMutual strategies approval [indiscernible] others that recent partnership These capital to our growing in speak discussions First, real [indiscernible] positive

of million to year certain investment year. [indiscernible] redeem plan of We from also over $XXX our products seed capital approximately

per making. we’re in on want our $X.XX but and reduce our establish dividend, forward we’ll will C-share, proactive a this common dividend dividend sustainable million the touch is to Loren Finally, going to to which from as say we’ve common a more decision almost share I annually. $X.XXX provide $XXX reduced quarterly upfront, per cash decision

a of in position from market us puts [indiscernible] and it here. the should and good is liquidity protection Our deteriorate

financial a to is any be than balance ample to to will us environment, will flexibility, build allow XXXX of strengthen have strength. It a from sheet much our to out operate which further anticipated. is present actions continue year us challenging combined of more the uncertain liquidity clear maintain position These one [indiscernible] ever would us helps that turning

turn me to it let some will for that, Loren, the who of With results over details the run the through quarter. of

Marty. Thanks

of expenses performance have Before I flows, that investment of cover posted deck Slide the on we on the topic the our want to which I capital pause and X slide, is website. management,

our platform top March. investment and performance XX-year long-term our end XXXX. of of peers XX% the the of and at end areas. reported the five-year from to and of Marty periods, see up key We You’ll exposure slightly for our diversified XX% remain with does that’s industry’s time in the growth about global half strong the talked capabilities

platform delivering Our fixed we’re strong equities, markets aligned emerging areas global, liquidity, is with income, global performance, that growth particularly and in and these It’s in investment trends. these international alternatives.

Next, onto flows. let’s move

fixed were value other Slide As mandates. funding net we billion also you and our disclosed the business net can channel and see X, Solutions on products institutional driven inflows in we $XX.X stable Asia net positive in to we our partial previously active had flows institutional long-term saw into income of win, the continue well our by inflows as Pacific. Amalgamated as in of see Positive flows

long-term balanced joint driven institutional billion we a just fixed to dollars a inflows our net bit and by had talk equities also Colin but business into our China later. venture, income more is in Additionally, a the little fund products. bit going under across about

in challenged quarter. remain the do flows retail Our

You’ll include see $XX.X billion disclosed driven in outflows which by ETF billion did $X from previously net outflows closures. net ETF billion, retail $X of

outflows funds. We also and in equity OFI funds, funds, equities, senior saw U.K. yield high global muni loan

in is our weighted our U.S. flight was ETF. physical in to inflows was Our ETF liquidity impacted European commodities billion equity, and particularly the the to domestic that period. ETFs, net product gold $X in Offsetting by U.S. range in in this the

In fact, of EMEA in new in number terms two we were ETFs or new markets. flows net assets in

presentation. You’ll little Schlossberg more little Andrew bit wealth bit the and the Americas a business about talk later a the hear in management

turning Slide to and X. move let’s expenses, revenues Next, to

You’ll one in lower driven It’s impacted to performance liquidity lower our value to flight to the and The reduced note prior revenues day AUM impactful were the as second important that decline quarter. relative impact our market in in our by actually the the that declines AUM, the mix we the and quite quarter than quarter. observe by fees market to in level AUM. of was quarter March XQXXXX, results of the average entered less were of the the and

yield you’d net on and to pro due March the revenue approximately that two fact, in reduction net and was In basis. month the mix go-forward a forma see of basis points of revenue alone yield, market

the the operating the operating the market $XX which of and weakening comprised impact in period QX increase combined a other expenses, in by dollar a FX million, offset U.S. pound period, impacted a and in down that expenses euro flex in $XX impact largely net $XX In the was in addition net the saw We of million the to against declines of and market million by compensation. the expenses. was

seasonality the you due As to typically taxes. first higher expense quarter of in is the compensation know, payroll

can and we expense to a light costs. undertaken In do a term freeze will focus hiring environment, base review in determined operating minimize of that near the the uncertainty time with of markets the economic we our what the the have being. We’ve thoughtful we in for on

aspects expense we Additionally, expenses and are reviewing the managing base. firm’s of aggressively discretionary other

expense rate $XXX they be on and up lower and due quarter. as of areas quarter, on certain to compensation expect XX, and for offered the of You’ll quarters down largely of we of based spend. items. March seasonality remember remaining FX the average last XXXX, marketing quarterly now will the $XX of million nature We guidance million levels reduced lower numbers based to operating line expense the per a our well quarter expenses of as quarterly on and These as were market approximately operating course and G&A fluctuate run

reduced spending tied consulting within We focused clients on that and for A present remain additional of travel, environment can and longer temporary we environment. expense our term. events, highly affected this by the we discretionary pull, structural most efficiently other to is such the base identifying effectively unusual suspension levers deliver portion the that and of and

factors XX.X% non-operating to point return as resulted losses mark-to-market there seed $X.XX. elevated is tax two going vesting tax on deduction that no quarter. domiciled That Slide The XX% seed elevated the rate impacted X rate Let expect price would was me by as our rate, an of on was in this in primary the move briefly share losses. is just non-cash for shares, portfolio QX less for deduction driven about and our tax seed in where of by EPS out the well our and the fact to We tax lower a to our that on reasons: level capital forward. the Bermuda mark-to-market that

the have on fund onto as last to management, respect the typical annual Moving see capital had will down to of end facility QX we $XXX credit our at with reflecting at a a liability balance $XXX you a that facility quarter, we looking payments, made draw portion million contract we of Slide our the the approximately bonus prepayment million as the year. well of forward also of repurchases share XX,

present and walking allow As strengthen spend we that Marty one prudent very believe a balance through proactive mentioned, I our minutes us considerations few the the to led to is both this was dividend reduce common and of a to This and to just in that financial decision. determined want decision to flexibility some thoughtful sheet. environment. we our

and balance to This target our for conditions at uncertain as in growth. in ratio eye dividend liquidity expected a of and to give a in with result financial as and light March to us environment, dividend flexibility allows reduction a present also the continuing Over flexibility. the about market payout XX%. our preserve dividend towards allows and in around of sheet improving to AUM business more given ending levels. for lower First, balanced It the us also firm, profile enhance ratio will common reflects market the leverage invest strength us payout our earnings the action an the time XX% liquidity enhanced

in committed share anticipate us dividend the ample to with of buy sustainable common however. not back capacity buybacks leaves capital our to a in the Reducing shareholders. stock do our return and We’re additional dividend We XXXX. to future,

moment on to with want focus elements and creates our continued reduction, dividend a each I take the ample generation of combination few the for quarter, and In operating flow. walk our flow a to just generate management, financial and We significant cushion key liquidity provides expense cash you flexibility. flow cash on cash us through

non-cash significant reminder, $XX some market As million includes with income declines. this particularly money quarter fairly net in our non-cash elements, a [indiscernible]

and will share-based It’s of with In seed part redeem important deductions mentioned mind, Also, ago, posting and our the million improve of addition, amortization, income impacting our financial liability also that compensation all repurchase I million to done forward without net in of million includes as depreciation clients, in so collateral. a as looking expense. to efforts $XXX million prepaid $XX about we’re non-cash $XX additional our investments, the for of connection in done money to keep we in that quarter first XXXX. for be non-cash moment share strength, $XXX

that collateral April XXXX. will remaining have we of which $XXX be net which by settled posted, of million a million obligation of We fully is $XX

have importantly, this us pay our our quarter maturities to borrowings the until no our Then off profile, our finally about perhaps position XXXX. leverage to combination to and actions in debt our improving puts and be managing and maturity. revolver to reduce XXXX QX capital most of structure, of including zero ability we also thoughtful a The

objective specific our the committing a not capital premature, optionality balance through environment. will improving good be now it our - we we liquidity. structure flexibility sheet Nevertheless, We’re any that our would feel about actions further strengthen to have right volatile maintain in while to but to is

strengthen capital our future to remain provide the that in management. create for sheet the our in liquidity we to volatility taking balance market with further us investment prudent allowing expense diligent while enhanced to for we’re and summary, will our In manage and business. through steps uncertainty and The and and growth approach flexibility us

me our to a about institutional have now Let business. it turn Colin, Colin? over discussion who will

echo and time. all I Thank you healthy you my are safe that of this like in to would hopes colleague’s staying challenging Loren.

in and and long billion, in the Our including institutional value, business rebalancing with with to $XX.X largely net are long objectives. in in of flows large strategies, These term variety a first flows stable solutions, their as with quarter funding a prior investment-grade results a largely quarters allowed estate. $XX.X of taking had strong stayed billion measured in clients view the real line realize decisions. custom investment our gross realized credit, as us $XX.X line at by quarter. We term quarter Redemptions result billion of a of mandates

through objectives these We transition to clients clients these also significant to liquidity share net crisis. $XX.X diverse opportunity saw into from mandates, meet investment us of eventually direct A resulted billion liquidity of help into as flows products the as which assets look ensure provide with other the flows financial growing our their strategies. flexibility will they

billion. pipeline funded remains robust Our at won $XX.X not very

it’s factors, increase quarter not focus funded this wins a periods pipeline Our year and as becoming alternatives, fourth on strategies, on prior result in our twice quarter. of our compares solutions, to favorably variety a is pipeline trusted our fixed clients the ago in including has partners XX% over institutional and income. This resulted a to across won

as We the that engaged especially of are that first in total billion institutional remained encouraged won through $XX are have clients mandates the that were crisis quarter.

hosted X,XXX XX result responded. institutional digital webcasts and webinars a clients the transitioned attracted measures and to clients social across model, that As We’ve the of globe, completely have engagement crisis a have distancing we’ve and over COVID-XX globally.

client key global interventions, Pulse government including of have strategies and implications impactful implications particularly investment and we week financial interest, markets, regulatory webinars responded and investment of products. on Our COVID-XX, for Market updates as been to areas

have credit, equity plans. beyond understand their for the liquidity. of portfolios looking diversity a increasingly next member EM what’s multi-asset, interest in assets, Clients crisis including and strategies, real are clients stressed expressed to Institutional and

and of their We’re also clients believe time solutions to investment and deepen We various as through environments our our important modeling our these ensure us real analytics relationships portfolios engage client to are working and Invesco clients Invesco partners provide to introducing closely conversations scenarios. team these with Vision, success. all to priorities that on allow changes to supporting will portfolio tool

over business. and Schlossberg I’ll you, Now it wealth to Over our turn Andrew. to Americas management ETFs global discuss to Andrew

Colin. Americas comments; you a I’d my describe some management to for with I’ll intermediary team of to like the thank however, Great, how XX wealth flow before matching off Page results, take refer moment marketplace. discussing to our is the

last year environments The Oppenheimer, newly were with went the pointed that quarter formed consolidated last and put the lines, our comprised delivered strength Through and much client the late experience Invesco total in top and future. combination that group, success It’s force multiple distribution of of of place and past to our the we’ve in strategy distribution our a few of is diverse in full industry. product year, all market months. the against built engine talent first

to re-apportioned and we’re digitally more key resources coverage and inclined tools deploying We’re marketplace. and models channels the clients, to and both traditional

Our strategy three-part North advisor through grow includes risk a insights allocation differentiated manage positioning to and portfolio model client practice. anchored analytics wealth and market leadership, on investment help in business advisors and for management go-to-market experience consulting thought asset and is investment platform American the them and their which capabilities, and

distribution model distribution since engagement, strategy to XXX% we’ve in in with and this was now digitally, virtual been operating early not strong format its we’re While our client March really designed deploying be success. this

It six will to have past both for client need the client been the the interaction, experience holistic confirms a has us relationships, technology and service described. scale strong to and will have maintain in winners going space over one to forward advanced positive. to that months Feedback I this need like

fulfillment by team same platforms with engagements proactive validated media and XXX sense to virtual the XXX,XXX six combine we’ve management rate. soon, looks a confident The has over web social the a placements increase advisors. forward you ability We’ve virtually and weeks. our the had but past We’ve and we’re print of have to this in Invesco traffic next-generation with capabilities, the clients media and give while to we’ve being in-person distribution. virtual weeks our stats of over the engagement able thought our leaders, accelerate digital few XX% strategies, seen had six engagement a done wealth declined Just relevance past to those and with

business. Now I’ll on results in just U.S. touch retail active a bit QX little the our

one gross in $XX.X That’s First, we in so of distribution best sales strong of saw XXXX, gross the billion QX were teams pick-up a our very integration following in since sales quarter organization, our QX recorded. QX as classes, combining growth and record We in in across particular emerging, all and XX% and results. tax-free than our global it’s equities, and taxable greater income. asset fixed gross saw sales

the and can and As maybe March early a the propelled All reallocation, of acceleration marked on the really cash stage gross on. unprecedented I’ll touch in retreat money risk by to amounts sales conservative you see in equity strategies, which motion March. and asset chart, and was an forward

during The February, nearly picture, and AUM. however, monthly moved flows a X.X% from industry really classes. fixed strong in decline February’s a by across markets. net monthly January that ending net into with in two knows. the which increasing QX progress as represented positive mutual The the March flows of fund space active over QX XX% changed net net income declined we everyone $XXX billion, In the over flows asset recorded period; all were flows In major were tale and really particular showed improvements averages,

clients and March in spiked than negative and as better investor cash redemptions at net averages those results flows de-risked. X.X% were industry Our raised slightly

some which in municipals, the these those leaders of of are positioned same for half like from we of client high we bank of portfolios outflows are some were in March But months and and month market-leading market March. asset believe that consolidations nearly are classes reallocations we of in where weeks ahead. to the benefit the the equity, strategies heavy hit hardest were together have international and responsible loans, and exposure, AUM Our

moderate while stage levels little They stabilizing, interventions, and seeing our not since January Just flows bit. stage last a benefited color large quite and early spike. reallocations a levels, XX% same than of March first week stronger XX% have benefit at February higher and March, of as market the The remain the sales, gross than we’re the government pre-crisis, QX.

redemption as better and redemption higher the due February well. like assets but to are the flows around of levels to emerging, Net have remain XX% meantime. than and it’s risk On the side, March, yield by high a primarily about levels below that XX%, in normalized stabilizing still continued month January than

two it Marty. moment a just before you, turn or ETF I back flows Perhaps to on

We want the While of flows market the cautiously liquidity in ready the out weeks. detailed as market, give and past the liquidity held investors our States, management benefits well, volatility not the ETF well reallocate, you should Industry-wide, notably a the believe structures global of the did sense United potential ETF to Invesco for demand pretty in the flows. the ETF, into very I on are franchise page, in tax and its squeeze the and six results. encourage structural of the at acceleration advantages high in those we’re wade back

us Our managing breadth, us records and most have, AUM, volatility, wealth profile a and for and usage channels fastest The $XXX digital which platforms really in status to of importantly top in us both growth. scale, channels, in of EMEA, term U.S. income, and distribution through exposure diversifying ETF the advice strong emerging in asset track business beta ETF we with long smart billion existing allocation strong liquidity, the has one in targeting model puts large position. growing with and ETFs provides gives portfolios users wealth

on just franchise. backdrop, more Loren what the detail With global a little mentioned on ETF this

It but net half funds, inflows recorded in from industry pre-announced flows of Loren from around great XXXX, net resulted that billion outflows second closures. that’s saw positive the billion, ETF quarter the the our in the business with of and was $X globally, strong at as inclusive $XX the in ETF billion negative We had of like the active billion a continuation major mentioned very it which year declines to the a start but levels, well. of net $X.X impacted January $X we our

impacted spots income funds beta loans, in emerging funds by to large smart [indiscernible] were cap as U.S. and billion income. focused it but negatively $X on we which currency was looked few sectors were our equity up quarter and de-risk, of equities, growing led We particularly market fixed in with investors a impacted bright the and in But several by and fixed bank a had strategies. commodity billion, alternatives key by

of net said, end since and turned a flows that the heightened and positive flow post the strategies. positive net U.S. earning of beta improved of our important strong, the around have returning on territory smart significantly range have improve and alternative All to basis market flow quarter, by volatility back XX% at taxable in the seeing first we’re a we’ve and quarter. few we remained people EMEA suites, continued categories in has signs in and

With back that, turn to you. Marty, it I’ll

out close take from we Thanks continues we had, me to investment section the by an a performance just conversation in a forward. to let against to had key we environment. demand where is incredibly was areas look away aligned saying key [indiscernible] points as good Andrew, before macro get in be investment Q&A, performance we this what challenging strong and just quarter and marked The

period to and QX, reflects extremely long consider quarter we assets [indiscernible] has remained benefits the reinforcing the $ negative of and billion, that gone flat year challenging really diverse scenarios term combination X% Margins under up March. of power the including since same higher flow ago, time the an outflows strategic. a management platform, Total than scale. Average with since of are Oppenheimer

term to we’re prudent and support financial to ample and Finally, long growth. expenses making flexibility liquidity, capital us decisions allowing liquidity and around our build

to open With Q&A. that, we don’t why up

instructions] [Operator

question first Fannon Dan comes Our Jefferies. from with

Your line open. is

this and I understanding how dividend Thanks, areas in sheet are mandates, we your and winning crisis was about clients that from today as how Can it. wondering business. remember particularly financial my Thinking parent of financial not impacts may large this know, how engaging parent good looking is talk you forward? in strength, you Clients for sheet, and/or going at going business institutional in about also. as of the issue the and business balance with you’re others impact question that terms the the the that first retaining guess industry, for bringing the stability liquidity morning. the forward, solidifying and actions or up fixed income, such balance the about or and thinking on but may trends asking--you the an

Yes comments Dan, then Colin sheet turn it strong. over let I’ll to whole is a Look, me balance the make the couple particular. and is point in

us at our that particular and capital do other We’re about the Again, proactive. and not been measures proactive a around seed business and expenses has dividend for It’s so all, on been just never in just they’re then the as we probably this strengthen the what uncertain it taking all in stronger and talked continues grow, topic only today to environment, actions again that. we up today today, will capital. focus institutional these actions we from freeing just

anything you’d Colin, add to that?

parent. nailed on it, It stability to care topic you has a Marty. now. clients’ been the I clients financial the No, about much of very up Obviously not do minds think institutional

strong view think would would we is and, institutional I our Invesco a point, company they the expect clients we’ve reinforce that that feel to think that honestly it I that same to Marty’s date think taken that way. actions very the and

again, the at the EBITDA into to margins is I in scale came that actions of this your We you and, moment. in a really will some a with very strong very a that think make, all highest the prudent this other we’re different very to thing, the of so we’ve built important cash other be in we’re organization. competitors. point flow position the is industry, company trying XXXX puts Again, than taking, just we’re trying which number

additional a market in guess and of in some a I and of travel place no some of AUM. as million around other is with savings, that business it quarter seems like things, related follow-up, practices Understood. $XX also the the with kind run rate

permanent removal, areas specific removal of outside about staying being is home and of versus this lower. people certain headcount, talk how--if maybe there temporary, could just you If are and markets if cost

in and so Yes, I’m on into then turned in attention sure to it so to already turn let additional hit that we turned talked [Indiscernible] driving platform-type is--that’s our Loren. slowed the frankly, quarter is where That really scale. first down, the it we that additional about our me operating to start as it we all had undertakings, platform, eyes to get going quite and quarter last post-Oppenheimer, making efficiency that from they we the were where our do actions this and to should our can the clients, serve eye stop home, could you talking with in sure to and to that an that the you’re your what crisis stop that’s spending, immediate clients, a serving that able with you’re The is making about. stop our you so done. do always [indiscernible], things just are spending, what we employees and brakes, safe, work clients we’ve interface

organization. we’re expenses that to and types building this looking going a the at longer, we of as [indiscernible] going program and place that’s an now forward where take where back permanent to started, We’re at you’re more

it. and have the not proven know track just to with We’ve again, it not it. proven the how [indiscernible] just of do and and idea. to it time time - back it, point we combination we year doing a to We record know talking we’re So last do about how Oppenheimer it’s an

to Loren, add? anything

reflects travel. The I I good we’ve with operate that be method is, are the add to things, clients one’s is one learning look business Honestly, being around things a with around that back costs should is do some as for model and of everything only mean, differently, and we think so things, will using like that how I respect looked at think forward. space usual continue costs explore that digital of there situation, is operating we can very variety and COVID are the other use to no gotten a this what going presuming post perhaps slew interacting everyone that right, going that at we so and would the to to of whole are normal, thing we how that things of as is--I

some stopping platform, done some good think bigger I the we’ve I we can But a the down the on definitely very of diligent are handle look technology, is is, worked We’ve operating can path around back financial think areas how the like to, we and looking about the managed we’ve This been that, feels now well for to opportunities which crisis, around hit through. around we of opportunity you way and before. spend at. keep much very that as Marty alluded through brakes. period. right that this already structural Beyond The

is reiterate just will we and Yes, the than and organization, create I’m never it it’s period frequent, forward, going in, and more I we’re with it to have change that more that. organizations, will operating Loren’s associated going way for how just and dynamic. to to client But comment, been business. and want we’re different operate definitely model many the sure The meaningful that going our good absolutely operating, the and how it do I interactions, very good operate costs more tried robust, highlight The forward. we really, it’s for change a clients, this they

because of No, of and what business, our we have down taking world, to our don’t, Do right the it frankly. going clients [indiscernible] I’d is been know changed and taking heads for say be a now? we better, the care frankly care but

thank you. it, Got

Thanks Dan.

Thank you.

with next Our comes question Worthington JP from Morgan. Ken

line is Your open.

morning. good Hi,

position a you’re taking but like by outflows. cut dividend given You the half, market still and here seems it defensive conditions

talked why consider buy the eliminate dividend for or in in of press year. seems you capital order half a the further of really we not and measure. altogether, back like maybe the the of That about strengthen dropping You release, the [Indiscernible] number cut dividend the cut been it sort preferred a not the advantage yourself to of balance take sheet, this market the stock allow see? downturn that talk quarters may to stock, buying outright have back about preservation in

Yes question. Ken, good

weaken that snap we don’t we to certainly It necessarily our decision environment but that But wasn’t our seeing we’re with not reduce was thinking the intend don’t working an assumption, certainly back certainly desire to intend, Our was a that forward. XX% done another from going from dividend difficult understanding us feel action and could and by we’ve that make we’re environment common here, here. we and like all decision deteriorate the this sheet, the which even confident level we if the the to to do to this at manage balance flexibility give this again, tested right the sufficient were stress ways.

are anticipated, XXXX as by still we of think challenging profile strength. enhancing isn’t than from is invest financial do be Instead, a Marty going to to growth that required to This we opportunity driven mentioned, important more capabilities at our that leverage position concerns we addressing improve a have emerging move flexibility, it’s going I liquidity client are which and operating, reactive in all. the we forward. to while be is to note proactively to and maintain

setting a suggesting comfortable is we enough, needed, decision you and course we was that not there a looked absolutely when not and of taken feel was this. We at involved. lot of what that were this everything casually, stress were testing It was

think net earnings disclose for I conference to these in quarter term things XQ net guys you How long date sales? look do on Then flows so far calls. regularly

that what practice still time while really that, think to Yes, sort to it’s of typically think a We I short a don’t Ken, continue do on. done we so going have is just to going that. not back, judge I because we’re frame stopped too

month. evolving, get want a the actual clearly, was don’t is horrible beyond way that Things March obviously think are to but in I better, the market I into numbers.

Okay, you great. much. Thank very

Thank you.

with Our Bank. from Deutsche Bedell comes next question Brian

Your is open. line

folks. morning Good thanks. Great,

made, Is two the of guidance fee of the down I you a have a Loren, clarification, points. do XX points XQ, little points a ratio basis basis absolute - Just the on implying that under just the in couple right, level that is quarter I run XXX. And those or be different have about rate said, the I’m then so XX, expense not correct? adjusted rate, the Do the XXX, think I that mistaken, than lower quarterly you should second if a number? run cost

one, Yes, yield average guidance in for points less revenue suggesting of XXX yes, saying QX. is basis of that fees, remainder and so ’XX, run we so on off two of suggesting performance providing. ended that as we’d in yes, where the net we’re the what we’re terms rate that the we’re the That be latter is the

you in where you-- sorry, I’m QX? ended so Can

I’m we sorry, ended. not where for QX,

QX the revenue For net yield.

I’m for talking just trying to get the that an actual fee about level ex-performance yield on XQ of basis. the you’re revenue

about All right, XX.X. quarter talking basis the the we’re so points for XX.X so so quarter, actual less, two was

okay. is - it so XX.X Okay,

funded think not you a It so like the but won sounds included the--you that getting the to that. Just about like obviously a there’s in only side both billion and billion here, $XX the that few actually which sales that terms the Then sure that timing seeing retail $XX you areas $XX funded? mandates, momentum sales of institutionally institutional you’re on is in had talk sounds billion, wanted make just it and if can the know, sides. to just I story in momentum good billion left momentum pipeline maybe sales particular. solutions pipeline, I institutional that’s of on on talk the Can

Colin, will you pick that up?

strong. to. happy has been Sure, Momentum

the As I pipeline pipeline growing. funded is--won mentioned not is before,

that’s we the and feel of client each five being and responsive institutional that reflected consecutively, wins. grown last actually quarters in so needs to quite we’re it’s fact, In

usually quarters tail pipeline that’s In time two terms good to pipeline for be to funded. will at of obviously beyond but through fund, a when that happens funded typically end things will the that about There’s the that, off be the is largely of expectation. what it some three takes will given any year. It

and terms it be to client of is In dependent product, needs. on really going depending

strong income momentum momentum many institutional solutions In ways, our capabilities, portfolio reflects assets, clients it alternatives momentum into seeing factors real continued fixed momentum, real of and categories. We are and the into dynamics continuing globally. continuing [indiscernible] estate into various

able create is to Oppenheimer availability products still the for of been and that those a be work for funds what or accounts? process, you would in Have institutional timing yet the separate

a to term that be see inquiry, are see the these that work It’s environment. things that’s progress, would it, getting on still not in not longer in side, starting pipeline we as we pipeline beyond in more reflected early enormously we were particularly in so increased won the we’re the but qualified funded, but the interest. It’s current have

where side equity, particular, it interest. global seen exactly there’s the now, that equity, It’s those so and on we’ve that happening conversations far emerging is the a lot retail what’s platform. the of In institutionally is markets of so are

Europe I think particularly in and Asia.

you terms product, in traction Oppenheimer and side the the sales on of on I demand? was CCABs going yes, Luxembourg to say, are getting there

still There’s It interest. hasn’t grown strong dramatically.

is the AUM, hundred that talking still are still and attractive. is things million about of of terms down, current the impacts. all product is interest the with in slowed environment, couple very We in The a market considered number there. Obviously but still

you. thank Great,

you if anything, know don’t to add Greg? Greg--I want

think I it. No, you captured

strong opportunity incredibly about areas strong. I longer that think of the that a opportunity demand term continue for so term is that up, pretty mentioned, lot interest the and is the and we’re products products, is or interest I intermediate excited seeing you the our think the we’re in in those to pick performance

Great, thank you.

Brian. Thanks

Thank you.

from Bill comes question with Citigroup. next Our Katz

open. Your is line

taking the new Appreciate very the you your some in as disclosure for well. much questions. thank Okay, supplement of

payout payout adjusted First GAAP of to an dividend. that XX% Is question, ratio? you for ratio had mentioned ratio XX% the the or targeted payout

That’s based on adjusted, Bill.

forward Okay. dynamic? type Is that a of XX-month

forward XX-month of yes, dynamic That’s type - absolutely. a

moves. of volumes I net versus Okay, just than how in outside think some about you then rate, the dynamics fee break get retail color to Just out because parts? be income, appreciate from impact market turning to market conversation rate know, as and trying the of fixed seems lot sense the of a a you to moving moment, to the fee setting Could for going a well. coming there different both your other down the side the to of

at money There’s fee had--you was a lower a some lot XX-plus rate. lower where but that’s dynamics of basis typically a rate, market you know, fee and We ins had flowing in, points huge outs.

was of funding the digit had significant rate. You which win, solutions also a fee single

you within impact, was I of coming the plus obviously was non-fee really full equity understand had through. hard which driving. That’s higher the are which in, It’s to just Qs parse our compressing had guidance, fee hard, I the obviously why of sort really think all anybody for components that because market You the provided to mix. some it

do rate give think So hard sort again, you which statically it, be, is but and basis fee puts why where to we March. two to of we typically thing, based you a you should me complicated wanted I even forecast least which at it’s points, don’t for that on

Okay.

Just one of them all thanks three taking one - this final for morning.

debt a whether up, EBITDA? cash In about focused market How terms enterprise of think value, when think leverage you be more there? you terms debt do or a went your it ratio, looking reasonable sheet, of do can and target a What’s to or went balance targeted maybe get at of we down. in function cap

good question. a It’s

point mentioned, I we’re As not terms committing at in this de-levering. of

We are financial very the ability to confident, so. flexibility have the that have to do though, we

of dire further through forward, November the could going XXXX. those liquidity without a and credit have then In very terms due taking million obligation of $XXX borrowing. our XXX that’s could obviously mean, down by on to zero, we $XXX we finally scenario the existing purchase facility coming that’s in that what handily the forward eliminating the of April, Under from million remaining requirements cover

be flexibility or maybe as sooner we having up if to the the on focus those Our events, come that’s we to decide right even thing would do. de-lever to

EBITDA to think now. you ratio, we higher comfortably be debt if our I are wanting to at right were look to than we’re

not not of long down looking is rather opportunity where forward. further point, there would preferred that the to at past, away been but bring we’re times going anything we far that is closer sort long and term let’s we’ve I’m target provide X debt, to time number, has term debt had for that us from the X.XX to in our think that debt the EBITDA, getting see--if to at I just around this

I things position point. to uncertain think but I what any to an trying has make optionality, answers puts today recover, think the and That’s us different of main a main markets one the It we’re start just like, don’t much stronger gives will to such us that to create if the it’s and right, as market literally that us look again point and very in the proactive. are these [indiscernible] steps to just is options.

for taking questions morning. much thank all the Thank Okay, you this you. very

Bill. Thanks

you. Thank

comes question America. from with of next Carrier Bank Our Michael

Your line is open.

is guys, for [ph] Kelley actually this Mike. Shaun on Hi

outlook update the and for products? pullback the give in capital, an you the strategies new launching seed on With us can

products maybe I’ll benefit in focused on Greg I clients so effectively, to can--. Yes, of of That touch method to very very our others is clients products. those or the seed fortunate have launch provided and have we it, Marty think the on our by or just launching mean, I We’ve we seed then have area ETFs. been been preferred the not of launching in to our had products put to around--particularly generally.

some can’t do we Now, alternative with products, do that products all and others so require co-investment.

in I think themselves of co-investment to offsets cases up and really actually they to seed because in, product balance opening have some to some these we’ve really where provide doors, as sheet. need use MassMutual own with Marty helpful partnership stepped has our our launches, it been seen mentioned, which certain

if I to Marty, like to that? there’s don’t you’d add know, anything

a to Andrew Why don’t comment two? make or I ask to Colin Andrew, both start? want you and

that limited areas do last product we those point at drawing it from the in our the mutual launches product Yes, ETF much where the acquisitions complex our two needs seed seeding of have on is consolidating a the right-sizing and mention clients, line, work ETF did of the capital said, year are this line coming side. or board over fund have for across course Loren as and, fairly given the that the perspective, we we only and thing from I’d complex, all the the in

Colin, [indiscernible]. Maybe can you

From we’ve I down, comfortable years over think quite an the anything I forward. standpoint, we going with a institutional received anticipate feel would think slowed support that’s standpoint, so I can’t seed Sure. from that been the of anything capital nor

a been would just partner in us the support to reinforce shown in they’ve and for of Marty’s particularly we been that to blossom might to tremendous, and continue strategies, I point, relationship a expect alternatives. number that They’ve has Loren’s point our MassMutual fantastic going forward.

since further Then pandemic? with to dealing are along with just bit they’re flows, starting any the to Okay, back improvement see in little Asia, going you thanks. a

was retail Yes. as accelerate the also we to that’s level. quite The at in out engagements be important there a strong. [indiscernible] into the it to just with There and continues quarter. move continues institutional quarter, continuing Again, this clients of

Maybe Greg, fixed from anything perspective, to from there. too a do because you there’s want income your demand add of the group lot over

you’ve No, got covered, think Marty. it I

question? I So get your did

this, continues I think that’s to, indicating think is of be Asia slowing positive even produced to contributor the in There positive I down. to Yes, mention, term height a long flows. continued nothing I’ll They’ve flows. that just

interested is We’re being launched, just in product, people launching are products still and that China. are than the still broader it

in Japan particular. as a is show think up well to opportunities I with contributor beginning around as fixed income potential

question? Next

Thank you.

comes next with Capital Kenneth RBC Markets. Our from question Lee

Your line is open.

Thanks Hi, my morning. question. for good taking

Just a view in terms Thanks. you company, and your What’s income. evolve lot potentially of could this the--I cash there’s of how generation the mentioned non-cash question, items of had net your the best term? a in within ongoing free flow near for

the levels, generation is Even sense strong. add We somewhere know, you those March cash gives scenario, a so you $XXX see holds earnings, flow well, you operations in in back forward. to to of providing is that of in get going business. between--you cash stress and elements, million types from Hopefully billion the non-cash of numbers. are reasonably between, number how from of when end flow excess contributor. Cash this that’s that from current operations a again huge on a somewhere based so to the we just much those Again,

strategies. real frames follow-up, you’re the in capital if for, opportunity was frame products, it mentioned some see I the a or detail that think of Wonder you you just What could could there. provide time that I better Great, in could MassMutual. just may, you potential Thanks. and terms initial of if more we perhaps one approval of the estate alternative and are terms little expecting

take that, Colin, please? could you

to. happy Sure,

I as contributed to our $XXX estate mentioned two think we earlier, has million MassMutual real of strategies.

would market. strategy of real of and as Asia sense launch valuation. key you anchor of capital LP is the as we get can value contributed the really estate, funds in some investment, a position retail strategy, in that one and That real estate We’ll well. also then targeted so non-traded markets out when a settle timing figure to was start REIT they’ve our an at down The first the

Great, you very thank much.

Thank you.

you. Thank

Thank you.

next Robert Our comes with Lee from question KBW.

Your line is open.

thank all you. taking Thanks for the Great, questions.

quarter the over back of then thinking to away should year, chip of go reloads we that revolver the obviously cash use the to Loren, next year terms about of kind to clarify, think questions, the Is just some over this it? right to of that’s of balance of at sheet way it first but be course Sorry but the in kind year? liquidity, to and

sure, generally pay flow right credit cash. still that generate down back to happens us credit draw In not seen mentioned, their and on in about I I be, allow times, the say yes, this you’ve would I’d say mean, draw would and facilities the for to to way facility, as to, general, it, and that That’s cash credit companies us the what we that would would think we we’ve forward be the just pay the would the I sequence us the then think do excess fully fully certainly cash. there’s pay a that, generate normal but allow is commitments I’d down. first and on to yes. allow facility obviously other get done, normal quarter, extraordinary that

the follow-up, Then if there’s of quantifying disclosure look appreciate us mix, and a lot and great. on we it, overall with give as that, line, there, in strategies of is mix? know at that I the but How fee Okay, a of should factor-based the Your maybe the rate, pipeline be thinking a mix a little we would lower? the compare sense to I it fee how that overall? in

[indiscernible] know with quite a business fee even rate we thing has information, but high same make profitability. don’t confuse [indiscernible] rate business. margins, Rob, know me [indiscernible] wouldn’t have the if frankly you very as let factor fee The levels Yes, comment. also, I I with that

a have you do sense of--? Loren, But

has still the aggregate I line a the little solutions, rate, pipeline of [indiscernible]. of firm’s roughly it a but firm’s the a in fee fee points because handful growth the rate, that’s is basis just has below with bit, Yes, think come it down overall in so

healthy. stay Okay, all That everyone Thank great. and was I you. safe and had,

it. Thank appreciate Rob, you

you. Thank

Our comes Alex from Sachs. Goldman next question with Blostein

open. is line Your

and was about Alex. was MLP this guys that dynamic the I million taken, and whether if morning, then about on expect had of of actually you million color have about you expense. Ryan accrual if how I that the timing underwriting much a we to Good recover, you $XXX of maximum Bailey have on. is behalf question the going should be OFI that any the as $XXX wondering on thinking an

went through reflected Yes, saw that purchase a I you we been moved--I the that Marginally reflected. about transaction million there in integration. was a than more component $XXX mean, was little was think a think small full--it adjustment. price the XXX--I through reflected quarter, we basically That’s

the but of XXXX our figuring more take we in so impacts, confirmed number it needs number it go to I final probably going as get those and do obviously, that is for to to known through that’s is not you’re probably going balance get terms recovery, number, quarters, of full client out the took the a is, by ultimately we we through many that up. where while right client of expectation what a the of talking for about the understanding and provided detail an terms sheet shows In estimate. Ultimately believe we that but one, it’s guess

not recover ultimately have terms that have the the part that over. we of still as if well as to the through where through number, work is to of of took recovery, all. It that expectation claims transaction the we’re normal the going component as when majority business something substantial we we’ll indemnification In that a insurance, putting we came or

there So as at this. that in out to of right is about think thinking, of substantial a terms need in nothing cash material least result or you now, our net

money just products? maybe reminder maybe you Can of you. at Thank lower roll one okay. months fee couple the any it, more. we Got on another a on Then market business of waivers as yields those through give impact us on

institutional Yes, the is as business it’s dynamic. say money nearly interesting relevant fortunate the I’d or of is fee, majority if to which as tends we’re that XXXX, waiving be some waiving of of our a you to we’ll lower in move business, an market in do topic of fee so impactful could be component. it as order had not maintain I that amount think amount probably large a need to certain yield we on there is these said, That retail into products. limited

don’t a think magnitude, little order of to amount little swags I bit, probably again a of be these and sort material could money. it’s It’s be of going a so it are as annualized business. $XX looking said, on But an it’s basis. I numbers we given our of still at us than not those are million but right that mix more material now, for

Got it, thank you very much.

You got it.

you. Thank

from Brennan with comes UBS. Our Hawken question next

open. Your line is

or I about been calls them remind any maybe answered. on us or Good you could Most us my and at morning. update guess number questions. point? of one, taking Thanks other for this of have liquidity cash regulatory

sure That’s the it’s of call different still not nothing number. amount our than changed. I’m in only It’s million, the that’s know it have we of been million--not that all range, is has the cash that the but a so the if--the subgroup, within that not thing of roughly in $XXX European we sort range that’s past. number, $XXX let’s

I’m or there any to aware where need of cash provide from that, Beyond we perspective have capital. regulatory is nothing a

not getting If I’m there’s sure something your answering if question. please ask. specific, at, Brennan, you’re I’m

know or we whether there that was that changed not had not about. I didn’t or anything you whether was curious did. No, or number just

If you about know don’t then-- it,

else. thing. No, the there same is nothing old It’s

the Then to the priority, half thinking the long to plans the and around the the how debt, coming that’s I that is to that billion revolver term cool. guys though a The about comments on revolver appreciate long down guys draw to first, idea of enough, pay fund or debt obligation plans, fold term you be does Good going down the view that the into plan down EBITDA increase overall ratio. you of have separately? the the or that or pay that up, there is around for

rather it’s down we rather it so the to the we the this down, I debt or have absolutely if perspective, ready we pay to get know say timing pay flexibility to--in would don’t cash? think I a would are a would of end down, capacity Well, the as keep effectively it’s at going to to we that we’re that topic, as paid I of net we into down we the when terms revolver, of would pay pay down XXXX. but point commit

You actually it we we’re looking should manifest at. think way. that How think of still I it,

most lever the creating thing we going pull environment. organization. one think pull we that until impactful the the levers, now. right have to most greater get think greater in we’re message to capacity The of absolutely away We that do any point, is reiterate to this those and we’re clarity, to there’s is when the the is important we flexibility to clarity to take Again just

how who initially. work you. to about I and to that’s Are of can lot I here. That from was environment we very or to seems few not continue much natural that you certain decline would expense $XX about think go asked a of that more about structural on going update COVID, going changes squeeze as in be in that a of portion base? as levels. on million, different is to with Dan through, we’re structural understand the really declines, guys on--and on current expense Thank firma given to us The a think based that A hoping it there everything should more you we--is thinking I to sensible. start a just was that follow-up clear terra

during very Loren financial similar said, our to as Yes, action is what we crisis. did the

spending, protect That’s we protect of really [indiscernible] what now which I [indiscernible] the going we’re [indiscernible] doing and from peers, you right to security The it some the you shareholders. you did, some our and you hear and [indiscernible] as you’re and first exactly That’s do protect what effectively flexibility. all expect. is stop organization thing creates stop spending employees, so

be of We hit heading brakes path, X, in opportunities call coming ongoing said care--to at we’re position more we operational the happen Day another in look where the we challenge. were the to COVID the organization. Oppenheimer, of We to to on had get permanent efficiencies to down out create what we to top this, take greater, moving to

as We’re when now with our confidence will heads we that, that, get out greater turning back absolutely we clarity to of of we everybody. and and share come

just we know started we already we’ll just to I track and it come record settle. to had to want down it, that things and doing as have we it, again, do of start how back But a to pick up path,

Yes, this, but we’ll give question, you we clarity as Brennan. no definitely get through

Yes, questions, okay. appreciate it. the Thanks really for taking all

Absolutely.

Thank you.

Our last from Stanley. with question comes Morgan Cyprys Michael

Your line open. is

to an today demand filling actually and uptick this you speaking, from Stephanie Mike. in and sort industry get industry then Thank on is environment in maybe your demand, for in see Do you of opportunities increased you. lends see here I further Hi, do broadly think wanted the on within Invesco, ESG ESG, for any front? views maybe. itself to you updated products the the

can middle it, a [indiscernible] make and the first I Greg why to Colin are and don’t it, comment happen. speak then Yes, of and in Andrew

there’s question, necessity on investment in. an sit. again depends is it just engaged think ESG I think any you be I deeply organization no and for what--where absolute to

opinion, your it’s what in Beyond business necessity absolutely a Europe.

in United are Asia. you legs an If offerings. in we have and capabilities also are disadvantaged. ESG and deeply here our we what are I capabilities gaining strong, But you will not various investment States engaged as It very incredibly embedded in organization, is ensuring you the

want the about with do of start [indiscernible]. you the--maybe some to Andrew, talk

may couple others and comments, a make I’ll as Sure, want to well.

that. We probably we’ve bit built and think and the create just will it. product at product or think to and around be have ESG that, focused question look beyond is that building certainly environment, it, going know a continue more I’d your on go momentum. and will for ESG-focused - I more we’re demand there positioned been I to

comment as way the fundamental on, focused looking--that might to we’re we’re a that we’re into looking area Greg of embedding investments. factor at how strategies bigger and on is want the it, that they’re ESG active think I

of a sorry, that’s the growing our around think all world. expectation investors--I’m our I of clients

of area that’s too. I think an focus for us

allocations think those the drives too. are a portfolios, I lastly, level it’s to continue aspects retail Then that putting more to together going be and at factor more, in people as asset

I fronts. are we’re or a long various in see may environments right abating. slowdown, Maybe see don’t short run, seeing medium all triaging in that I think it on you the but now, any while people of

we’ve that lot thing in this only tremendous so so in The things in just of fixed from got of emanated overall, in and doing Europe, that stem business a overall, having that add that seeing that participants in different to I from clients I’d were we’re seeing focus--that a kind and discussions of lot doing and the and that’s our in we’re have is demand alternative we’re that that coming of to America of a Asia with income there’s areas. think North a the that that in products things that other number form think demand, we’re I hit focus clients

but trying really a are making investment the we’re we the mandates and investment point embedding kind of capability do to proactively, to really so surface not those embedding Andrew up capability, in decisions support that just going things the ESG made, wonderfully ESG that in ESG, strong touching that We think, that into we’re and teams in to from we standpoint can overall. that on to our match have make that an sure

prepared lot environment, will, gone products the that through the to of we’ve weeks and handle stalled once what’s put may we we’re we’ve which a got this, got come of into while we a get in will be demand, increased that of think got think. to light we back marketplace, we’ve it we We’ve online think able be already on that, for demand, couple we well in and that a strong capability,

Colin, anything add that? to you on want

as is made. were equally the that just maybe I’d importantly applied across portfolios, book reinforce I that critical a more and be It’s a the mentioned, Andrew importance. product but, a No, ESG can is as core think skill, points of factor and important

good our particularly our a critical In fact, a of our solutions We number ability was client from about space that in ESG where capabilities standpoint. capabilities. to wins, the have core been quite feel

you. just be with question, the Thank was and engaging, that appreciate soon. and us again I spending time So everybody last we’ll and chatting

does This disconnect Please conclude at today’s this time. conference.