Invesco (IVZ) 25 Oct 222022 Q3 Earnings call transcript

Welcome to Invesco's Third Quarter Earnings Conference Call [Operator Instructions].

As a reminder, today's call is being recorded.

Now I'd like to turn the call over to Greg Ketron, Invesco's Head of Investor Relations. Thank you, you may begin.

Thanks operator, and to all of you joining us on Invesco's quarterly earnings call.

press topics have today. we our that a to the covers plan addition release, provided we presentation In to address press are presentation release our The invesco.com. website available on and to can the website. found information This by Investor section of be Relations the going

include statements today and statements well for the and review measures will measures. of the the certain Slide appendix to disclosures as on Our two financial GAAP. appropriate presentation Please forward-looking presentation non-GAAP the regarding reconciliations these as

we and Officer; The will does for of call open on for edit Flanagan, webcasts Finally, or and this up transcripts accuracy we Invesco results responsible is questions. located the Marty not Dukes, presentation, our provided guarantee Chief After and present not Chief will our are Financial Website. our by Officer, Executive the only teleconference earnings third morning. parties. President the Allison complete authorized

Now I'll over call Marty. to turn the

to page. those Thank start highlight the inclined you, on And and follow Greg. along, three I’ll so slide

of this do market in dynamic be seeking So inflows cautiously broad equity net range in demand. Despite net the mix have of fixed and our in the with positions capabilities. generated nearly to the the spectrum of few from along diversified which firm year-to-date lower. high Invesco declines, is quarter under of behave fixed quarter a these income the ETF institutions. to class client fixed asset one has capabilities China, well market in garnered billion been challenging serving three begin our that that, long-term the generated backdrop of this prove that flows impact inflows source Investors Asia channel. money in with a meet a to active the can We continue the the with as income retail of managed have are investment with testament client's back I'll and year, private of and as market. our demands The vehicles indices also markets inflows some diversity basis, on $X.X to of in the historic third in across net steady active largest bond areas income, that flows long-term investment to continues of this investment global areas industry All leadership of and market global and management. Greater a The momentum the institutional as managers business capabilities, as trades moved strong Pacific. environment that major risk-off we level demand most $XXX clients quarter the favors world's billion platform. assets of net offerings, clients growth full continued managers

this joint billion China successfully new Great China quarter, our has inflows long Business and Wall products, Greater fueled delivered reputation Chinese in term venture as notably result managers net Our income. grown quarters continue We've China. difficulties our to launch strong local standing fixed the of investment most our and as growth of $X.X global consistently Invesco despite partner recent our economy in one the several the faced the we by a long last of top in

is hard China of and a of many investment result in position leading years work. Our

eventually market in economy expect global to industry. growing the accelerate our growth and China in fastest As the recover, we our

we of out by in the business the market continue capabilities to the many partnership business forward this XXXX. leading XXth in capability becoming our time. The we're to the a of pipeline Despite in for Growth new Asia bring global differentiator our the look and Our the institutional clients win uncertain increasingly risk-off volatility is billion of which with Pacific. to has of Invesco. with COVID-XX channel of we in generated markets, mandates continuing world's consecutive solutions net led We market experiencing several challenges proven institutional years, team, to pandemic resilient throughout last build and remain organizations in a the sentiment distribution over quarter our result investment the as solid. downturn impacting $X.X inflows our meet for range

maintain a we flat inflows growth and ETFs gained third generated net position -- market ETFs to strong in have see we eases. organic the While into quarter, for slowdown, in rebounds industry-wide market are despite volatility ETF and year-to-date relatively demand the basis, expect slowed On leading growth share. we as the

quarter. experienced third have We net and continued markets capability in private outflows investing the our in

the generated our of with against to volatile market relationship is our strategic MassMutual, our to which organic year, demonstrating Over and growth meaningful we strategy alternative platforms. Key strength very continues is a strengthen. past have the alternative

bring products a over market Invesco quickly MassMutual investor growing In institution. it strategies, billion alternative annuity vehicles, this on our of addition and with nearly brings various along a to $XX to billion other like been the in in billion $X.X $XXX is as broker an financial to commitment investors. us managing we committed for to impact over and class self-advice party reputational $X in dealer, and relationships prior The various strategies. to significant adds totals billion various have over alternative to product. enables commitment compelling to Having variable in decline, MassMutual Considering combined that strong strategies million, with has which partner in includes investment more time third haven't the million from backing work partnership MassMutual. co-investment we reputational including in world assets innovative MassMutual seen $X.X with commitments This our $XXX investment

capability for industry key the the term contributor headwinds in On quarter. third client billion outflows long quarter, a been totaling mentioned, lack of driver markets equity areas billion this strategies term be future for in markets net under in experience $X.X demand the for continued of outflows emerging net Client growth of the $X.X global billion class to where during will important have net global subdued growth quarter. capabilities wide that I largest developing markets firm asset the the While would were returns. equity near $X.X demand outflows remain our in recover the and confidence with fund had and pressure persist

progress on the last balance at we made position As to quarter quarter, building this level been with a discussed help stronger has significant outstanding We in balance weather debt sheet the ended downturn. total a years. market zero is over lowest and us

over we increased our savings met billion cost from mentioned key sustain evaluation. target balance maintain strategic we that our we need quarter, annual in the in and cash we Our areas. million of Last investment flexibility to $X growth $XXX

continues, a management approach maintain volatility to need to market As the expense disciplined is paramount.

will re-examining to spending hiring be growth We of all in aspects initiatives. focused relative are on and environment we term near are critical and discretionary we the

term continue for We thoughtfully to managing while headwinds balance long growth. near investing through term market

on turn strategy, industry objectives of With firms our of it always will By operating remain delivering investment while As confident I'm Allison. efficiently maintain in helping to compelling meet allocated importance, their focused this strategic long resources. over our scaling clients to leading shareholders. in I'll invested returns the the we position that, one executing Invesco term areas platform, and as

I'll continued a top three half the and beating solid everyone. morning, and to good of peers and benchmark with XX% with actively managed quarter in of or Investment third key the start year in be And XX% benchmark Marty. you, continued several slide improvement Thank four. performance These balanced to past and a in client continue lacks the quarter but demand. results five where reflect see experienced year income certain equity we basis. strength over funds. strategies, fixed strong strategies Performance and funds, we

products. with movements $X.XX by management decrease quarter. Global Turning $XX a into to of by assets the under quarter slide money net the end trillion exchange foreign billion third of market and in partially ended billion reduced billion $XX offset five inclusive inflows of from $XX inclusive, declines total we AUM, second market

outflows Marty this organic noted, for our $X.X long billion channel the outflows the Active been our most volatility. the outperformance net for firm As million. $X.X quarter, of driver accounted totaling in of term billion outflows growth continued remains billion. and the XX relationship quarter $X.X passive consecutive our billion market performance while of amid remaining capability capabilities A sustained net industry the experienced relative of $XXX a the several for We peers. not despite during accounted key quarter institutional a and quarter. strong with has to inflows We generated flow delivered areas inflows strong net which $X.X net the relative resilience of renewing

ETFs, long we $XX.X Net coupled slowed growth net market see Q-to-Q inflows the risk extreme outflows volatility the new and fixed rebound expect eases. quarter, accelerated in the a and our Americas maintain the innovation and are risk a and retail are return growth ETF considering basis, also continue and institutional mandates commodities, flows were we suite we the vehicles for continue and ETF slowdown new volatility institutional net channel second the primarily billion Despite organic with classes We've bank created products spectrum. asset seek our industry-wide. quarter, amid billion, rate. net quarter, On market XX% to relatively fund from investors these fundings term loan inflows long for by third in this in markets, across Demand third to growth income were were a $XXX channel volatility. share into in clients year-to-date. net to in geographies, and equivalent net into exposure headwinds net in year-to-date the That driver, flat into lower the quarter, this Offsetting growth Q-to-Qm. term leading franchise our ETF in of While and $XX ETF challenging position Offsetting outflows. Invesco. million the and carefully flow as low the outflows EMEA, to with as see led market gained suite

Invesco net Q-to-Q, industry share of Excluding higher assets management. captured industry under the of X.X% X.X% our total than inflows,

in $X Japan. led China slide this Asia Now, billion of Americas the turning and outflows retail the in EMEA we inflows over net up picked with six, in Growth continued long primarily and net Pacific channel. to experienced quarter, by term

Our billion including inflows, contributed $X.X from the quarter. China $X.X nine net billion launched of products during joint new venture

but bond Invesco our has difficult no highlighted, was years, have capabilities Despite markets joint as Marty now recover. a one into for $X.X of to to a billion $X.X asset most years income breadth as inflows. inflows our strength straight year-to-date, source for quarter. the class. offering in third several commodity XX inflows As accelerate performance and net in The net our largest key drivers growth of quarter. saw the experienced growth there of the ETFs, pull with strong as a the net loans of exception back long-term Income in outflows to and fixed investors markets Fixed we been which quarter well third third bank billion the venture The that reliable of for testament in attracted investment have remains reliability quarters, net experienced strategies the were of now. outflows firm net Alternatives expect

confident While we're investors be business growth the may carefully consider growth term that to near driver allocations, the our asset of in alternatives in years come. as slow strategic will

we've GTR a our and In the volatile fact, year, our outflows of growth over X% generated the organic platform. strength product, past demonstrating alternatives rate, excluding

developing Finally, outflows noted, our equities equity in with class, including of $X.X in developing the account net quarter, experienced $X.X majority asset capabilities. Global for net billion to the the billion markets and continue as of outflows $X.X Marty billion we from fund. in market

challenging our seven, than win to at fundings was end and we institutional continue as Client third quarter, $XX second modestly Moving compared slide $XX in quarter to environment. last mandates lower the new quarter. increased billion to pipeline the quarter despite billion

in mid dating Our pipeline running XX range late to the mid-$XX has back been billion XXXX. to

lower while market range, see as end uncertain is robust pipeline this the we given at So the the of the still size environment.

the quarter, noted the asset reflect across four our to take mix as to pipeline to classes, some uncertainty and average, quarters pipeline the In to to and range to previously. two we mandates that causing quarter cycle fund styles business As funding continues estimate is would geographies. is last in three diverse summary, compared a on of three we investment longer now

clients. capability Our pipeline global XX% of to enabled solutions with and the institutional differentiator a continues be

Turning which XXXX, the decline than billion lower lower third consistent the see million of Net $XX to global in third this expenses, with well operating the decrease as to X% and last have and slide was asset quarter $X.XX active XX% levels. base. due XXXX. quarter put The significant discretionary drivers a by on quarter quarter, often expenses, to last and $X the in of quarter pressure Total compared expenses decline lower prior revenue decline markets year adjusted were last $XX as were lower eight, million G&A quarter of from our in quarter in than $XXX the revenue marketing as million, from decline third which quarter in downward million $XX of activity we declined of than third spending. million with seasonally the primarily

corporate will the new our continued discipline Atlanta include quarter investments enable us projects quarter last to and and We a reap evaluation were and to enabled expenses or XXXX decline the $XX transformation, The in decline of core office expenses, as our X% without the continued finance quarter. slight functions human strategic in enabled benefits as expenses. is XXXX elements resources duplicate and headquarters that program. achieved well million third for compensation also technology of we declined compensation million, meaningfully mentioned $X from technology the Compensation scale savings saw Drivers employee of Current the markets the strategic and despite cloud, quarter we third the a the growing the several transformational installed our Alpha XXXX. investment recover. NextGen projects capabilities, that Embedded expensive. of and expenses systems our I to in spending as of these from technology moving foundational third growth property rent the in of have make have effectiveness enhance us

This Historically, move similar of the for time of expense performance and elements expense. declined our end it to compensation has pace lower growth outcome revenue market practices. lower year this adjust to periods XX% the revenue. towards XXXX compensation and tends decline, some variable of the range, with take managed compensation base range, We to ratio and a to certain to to fluctuations Given can line with full will the magnitude net and when XX%. in been quarter-to-quarter XX% our revenue competitive of ratio ratio cause to company the the in industry

is revenue at base. During decline, of end driven revenue the upper of as towards the the year, tends compensation the end year this the periods net range. would ratio Year-to-date, trend lower levels, ratio the XX%. experiencing to continue of revenue ratio full end to range by upper If our remain this quarter move we to are towards assets net

managing all Given the uncertain spending. aspects expenses of evaluating market environment, discretionary we are and diligently

invest in our growth to continue near in and those capabilities focusing we're key hiring We term areas.

focus We will differ efforts hiring for certain other positions initiatives. on as our we critical

on our it's meeting always, so. As focused and where of remain the diverse investing do clients to we needs necessary

are support business growth we that operations. Balancing careers employees, allow manage Invesco our our scale foundational technology for position will our prudently projects our and investments growth proceeding will and provide to objectives and with future for and base. enable future expense Finally, rewarding these

$X.X to tax a in was of operating the by the XX.X% change last high operating XX.X% lower market declines margin year. quarter, rate that income compared third balance zero ended second for may Maintaining a an rate operating and from due quarter points this entities. environment. effective vary and non-operating actual XX. in with debt Adjusted per non-recurring offset between particularly on than September tax tax We slide we lower to was slide be last third quarter this mix driven lower continues items XX.X% as by lower be income. as $X.XX revolving second due we was across $XX quarter pre-tax a the a navigate credit revenue due XX% conclude the expenses. the nine, the top on $XXX Earnings to with on XXXX. of our the net by managed $X.XX to strength operating adjusted jurisdictions, and share of to of to the partially quarter to income impact were XX.X% balance XX adjusted the in rate The non-GAAP fourth was tax facility. income the as quarter, losses to quarter same million effective I'll compared quarter, to of of Moving third estimate XX% the tax impacted quarter estimate factors in The in uncertain and million in sheet as lower items. effective third Total all-time driven in including discrete few a billion priority,

million cash cash $X nearly from of over June $XXX and increase an Our equivalents balance XX. is billion,

agreement last defined times end credit line as our at in the was under facility of X.X with third ratio the quarter. leverage quarter Our

driven declines. last times. X.X despite our ratio improved from in included, challenging EBITDA was And flexibility by stock current third of the the the year third continuing financial market is is preferred times aligned leverage the this Our us leverage lower ratio navigate In significant we quarter If high future. quarter to demand. client strategically in areas while Invesco will environment, X.X allow that have to invest of volatility to

term, expenses be the line scale our needs our serving recovery the our extremely And to of long maintain to that, commitment so ask we market delivering that unwavering I'll thoughtful value up term We can shareholders. open when will the in managing Q&A. and place. near in the operator clients to We through for rapidly with any takes

Bank. Instructions] our [Operator comes you. question Thank Deutsche And from first Bedell Brian with

Your open. line is

you're Great, sort ceiling of projects. morning, mentioned expense the lagged the think the and that to go much expense Any they a that com forward? also thereafter. working then lower as then start you for might bad going transformational on space I the should and market can on of And on read, a that, thanks. Allison, you we in calibrate Good Maybe XX% therefore could as we folks. soon seek really side, XX% of indicated, to be sense quarterly couple that things of soon, over a the on that just how off potential you should related or revenue can initiatives to

the good Sure, me one. Brian, let first take morning,

So lower and on why expenses. The sure do of be say right A And to just ready on estimates doing projects, the also could not is scalability. the way this I would avoid, not would provide what transformational wouldn't we that think say to about I'm costs. of any further future I create to even it's in terms way I'm it, lot it. I not think ready, it's to would about

our about I'm some streamline yet. time, talk we'll lot not over P&L into things harmonize corporate necessarily making there's give with are our these data and capital and some back to So financial nimble in past, our office our And debt enterprise way. operations sure the large functions and with we the future. data into perspective infrastructure systems that's in a moving reduce investments investment doing going scale the Those as whole opportunity it us middle that and just systems, just a and early we're that also the tech the bit have continue you'll a over human will in it moved talked see in It along future. will in NextGen systems, the from of will more our create foundational support the the to the operation. the but of We've just efficiencies quite Alpha about we're a more globalize cloud that more and cloud, that

full and FICA. seasonality side, don't you at quarter-to-quarter like really year, and our are fluctuates as taxes it comp-to-revenue have the because on always but XX% payroll and we the just revenue is typically look things quarter-to-quarter to range a as fluctuations also On there XX%

comp a So were on year we're XX%. through to and we at about the an we quarter full at look third annual really year-to-date, cycle basis, manage and it

last look I'd about XXXX, range, not year think on we say the And as full what year, to we XX%. So we year end noted, the lower it'll end. were be full higher like, the closer that of as

makes sense. That

helps. that Hopefully

term? just I fixed plans if sales the could pointed how the into you're coming that much about equity reallocate yield you seeing strength positioned definitely. what if And you fourth work now you versus you in extent environment about can channels quarter. into third ask the there on been then can really we as institutional both offset on fixed also that's the if as side, maybe seeing and demand comment higher are retail may are if then can the income we to up your Maybe And just income, think pick quarter Yes, retail on to and see even out, on a if near again, you talk side, a this yet, funds. pension you're outflows

where conservative. It's very a are you've what's going, great everybody's rates question, gone, happened, look seen shortened,

in fixed that full fixed much a they move of income are more making data you've conversations are longer very, much with brought the But yet. side. seen the looking income, You attractive. the are -- not very institutional capabilities That's race a where at on spectrum

know, you tend But institutions accordingly. As make allocations to less tactical be they volatile. much will

side, range say too would the income where moving. retail broader are the yields because it's it's again, I'd are -- a of into fixed early. all investments On anticipate But of I indications

you. Thank

Thank you. comes question Hawken with from Brennan UBS. next The

Your open. line is

the up of making, groundwork Hi, I laying good my you're a was the for taking Allison, including for hoping follow to investments you alpha. flagged on morning. that outlook. bunch expense Thanks questions.

into process the of middle thinking entering I now. XXXX, about So probably as we're the know in you're budgeting

out asking early fair ultimately pessimistic? read which like stubborn, early lead maybe gross pressure Is an but that there and it's to thinking a in and in XX? Or it too little efficiencies, about some continue more inflexible near to will for continue alpha, investments the expenses result here. being expect could initiatives is bit an should be maybe to like, But that So we make for to term?

just great one not hard certainly expense firm exactly. a it's going to And It's yet. And answer give a question. guidance to

variability we we just season. And are generally about let's what But our in can some space deep can't there about the budgeting manage. and the maybe, what how I we is manage mean, expenses. We in talk think expense and

primarily expenses the third that see guided are always you a on you're certainly year. we've seeing As about it It's our side, variable. this it that compensation of -- to

point this it I think to we are areas don't to challenging scale of environment, couple last a makes our kind that's on and we position down on to things. for be sense these are that we simply expenses really clients. really It puts a think to and a to line lot to items of firm managing projects growth on. keep year. of in grow, pause flat continuing And to I'd be most One, pause wouldn't despite foundational because relative the we key to to need support us transformational in to that business just good to be where invest to

couple So very our that. of are We're not I stubborn rigorously. being elements about growth managing expenses very hiring we're our against the made around at comments really about of expenses. expenses, discretionary and our things, how a on thoughtful There think as We're I or focused that areas, key think discretionary reiterate I'd looking I hiring.

reallocate the some I transformational hamstring really we some as of those don't. don't and us, progress costs that these can continue do pretty areas I like to of make seen You've think, on ability. of and work well. we unlock that good against fixed And think some more continue to I growth. areas into have we'll our feel facilities we investments

a in us puts actually do and it think recover to and scale turn they faster markets position when will. I

responsible it. organization. that lives you focused say but just building us historically. it's thing at imagine on It's you you discretionary And putting will things do point would that in hopefully looking everything be we're I Brennan would continue great very Yes, to we again, what can done more to responsible to the success. that position very, focused do is as And and -- to within firm would be of very the the we the the And exactly a and and very on not some in snapback – I to short and very scale we've for exactly term progress. are strong. make you do And anybody's going change Allison

recognize I Sure, balance. its

how to position Just I the tried question.

than an was under expect that I to rate us October what that idea transitioning continue? about as this revenue Is profile has the just under markets given continued of more additional general nitty revenue? the or rate the Okay, through it for other come of to fee exit Is some been this continue we kind like? give of volume is. think pressure a to could there, Maybe revenue, that could the expected. actually showing of Should a pressure rate sort other rate sort fee down? about more quarter? you the this to pressure look under just – And item, had reasonable the Or

Sure, Brennan, those are good questions. thanks,

of don't Let net rate on fee rate. the one, fee as lot really in the you me say the factors. know, then particular revenue whole an different yield we And manage is just output a of

markets, revenue yield and on what then for declining emerging declines markets, developing are and markets, they meaningful thinking that the a declines part the the The global our future. equities, extrapolating quarter in that the is of what revenue about to and equity in markets that portfolio. drove the yield could net maybe so pressure mean emerging particular, in And biggest

in pressure market on the classes fee so our And the declines further asset exacerbate those rate. particular

mix You also seek and we to see shift markets money the risk-off exposure. asset demand experienced the and that for

some those certainly at we've real same of from time. benefited of side the while we've and mix shift and the the one risk-off pressure So asset exposures, growth the on got ledger

And line to get those a in You about. also other in you from in decrease other that revenue that item. second revenue a the the I'll asked saw

going mean was ending for the quite I about few a a on. And bit look, billion mean, so those quarter. $XX are management could lower think, average under the downward than future? the things all assets what the for the pressures, sort I there are AUM of One, the lower that

continue some on that do, pressure given of expect would just the markets those the of pressure pressure to at which to tensions, geopolitical fee overall come I developing well. comes we to they on at and the lower growth fees. going expect rate put yield we And will and put as it's moment, So markets categories which passive, continue revenue, out that. emerging If continued

So there. on yield the of upon the this that change is does the at balance assets the where And were markets XXX. markets put will what over pressure dependent as And do Other lower fees. All overall this that estate $X million than fees, all front subject do fund about quarter. to really quarter. as was the to lower in global particular was noted, of revenue, end in you some that course, real transaction mutual and due prior that

of levels. a I really on the of category, function levels new inside and a activity recover. normal and as the it activity think volatility just it's necessarily, but quarter that the that did about pressure outstanding will pretty put you don't So recover experienced levels, third activity just we if it's think and

Thanks very much.

you. with our next Schorr from question Thank And Evercore. Glenn comes

line Your is open.

ETFs. of the hold rising capturing a in income huge so what to Thanks, the on comments curious better is outflow on great. is you time. hand your done it's how as what to Obviously, job presence an That's and some environment like specifically to as can demand exposures on capture those channel, in every on appreciate going your they that retail I'm fixed this try I'm to risk to capture demand, front, But of do low speak There's just curious it. I'm outflows? product they your happen can curious mix be the channel's towards side. obviously do but can is education retail the transition on yield, on unfortunate, going you

right. exactly you're Yes,

I Right. think positioned uniquely we're here.

in in the the market, equities happening we capabilities And also with engagements in we whether we it's have real are also just but capabilities it fixed there. the market, sure positioning informed the have So range we marketing digital the field, that capabilities in or have advisors and the have. But with conversations distribution that start financial with the of the no discussion the consulting unless like in back things And all marketplace secondly, we’re everywhere. there's the conversations. the ability when working on investment already, coverage consultants, side, capabilities I'm the income. we the for you get but financial you with be the those are have

So out, think bottom top. capabilities. don't quarter, closer range get from you'll reallocation don't the a with that to one quarters, two want into the into to turn of that, you're my probably perspective, I And you're than broader far you

I on-going of A processes part guess.

Yes, yes.

well? outflows heard now a be side, that of refresh. on your the client demand, But just you're an the can being what focus made and as environment. if the on going could comments product seeing may we and are be investments on where I it again, offset alternative what more market forward side So What private little

be bank and are estate credit. real us, dominant where so recession of asset about very term, loans in impact seek focus two people are an very that within area challenging a class also, there credit and parts short and on said, for areas of it's where CLOs, nervous continues Yes, more continually to opposition much. future the But about growth,

management other channels. we've specific capabilities about into been some wealth that area The very talking alternative getting is

from year behind And the side. something that. on when very way, that be debt start be greater perspective, there'll my and leading in we to focused on XXXX the should to traction be the continue see We

another that So an absolute area as focus is us of for organization.

Marty. Thanks, Okay.

Thanks Glenn.

next The you. from Ken Worthington Thank with JPMorgan. question comes

Your is open. line

the to see assume, do the about I And the to incremental about scalability, that to you're investments tech by that given looking incremental, of most than are take going the that on cost making margins doing? scalability And incremental historically what are questions. Invesco seen line morning, like think benefits. Maybe a starting, how The past. thanks think you for margins to what good and better are impacted maybe we be here, G&A items on taking which XX%, as maybe of can going scale are somewhere, we've Or in to think different bit? XX% what Hi, maybe revenues discussion concept on not levels I and expenses, XX%, better thought the improved meaningfully in is revenue it maybe further about XX%, would plus. it little really scalability think is you're maybe

going pull back a them. marketing, around, also see And at items. scalable and they precisely the back pull actively would we're pretty to think where them. need clients the need time travel expenses and you of it's tech in need but as you're on should also to when and line to item Let be to on with see well. talking that, of some be can not our is most And being discretionary marketing; front we to a we to of start and the us in But point marketing one be the front the And one line little me scalability. I'd right, first we I G&A bit, it

way like do some I budge that as upside. the the I benefits so much on there as about looks and well. doesn't quite think on And It is think what is, up, there's

let I'll mine in the scalability. on But these investments the years I us making would give since to only projects of where doesn't couple say is back. sort past, maybe of some expenses, in and Marty terms even of of of terms more technology and a In we're relative chime the

really from. firm's I and Oppenheimer where the to COVID. of We think acquisition eve we've just necessary the come closed think it's been perhaps, on about where the

a to And are in grow difficult all of all started cloud. many system the a data volatile, think allow of has years. you us of I in just just But been the are this have and to more the when terms various size the fashion that and in you the just unified because is the doing what creating a saw so not now material what increase overall of platform just don't see, will integrating different seamless framework, further firm firm, redundancy scale across rather the few the on the and very aspects of in parts here, from challenging and we systems enterprise you eve of a

our it a much been so in difficult. make nimble doing platform lot would the environment. without more gives differently, and us whole to adjust any we'd just our ways be Said this to that flexibility in shifts spending And more to serve have clients

add. me let Yes,

over not no. long look answer's Is you a if too was So XX% cap? at ago that when our The profit margin

we had that north when the be will So we margin. operating under management assets complete this we if local same of work

sort and and in happen the get in of structures too because where rationalization on where the does around because happening all pretty breadth can to in of they're scalability. line those that efforts hard that. look to and is but we And we're new a front are holistic this that to for Also at allow back, how front from literally capabilities, looking at, it's holistically item, much that the of we're And is, you things. that back looking be past now. if happen. technologies inconsistent going to client are the just application might set information, support looking That's So right explain with simple demand exist of really that didn't that how clients it's what a

So client that And of to has scalability it. there's is detail been really capabilities within the the underneath headline. our a lot demand

in that the Invesco impact And either LDI Thank up might flow an through that market? there And solutions to to for has been the Invesco? you. make XQ as be a given stress Great. you U.K. Did in U.K. fixed see did that And what following and pension U.K. for XQ? opportunity then income building Invesco maybe out does market. began globally, to change just pensions, extent pension we or

Yes.

good the exposure. have is LDI any we not So news did

for post when year, Likely it like open suspect real event, Is managers we up quarter? will look next now. there's So opportunities. I not. that other next definitely But this be impact. going through that you call -- an to will I be and have some opportunities capabilities do think

you. Thank

we I there, looking say, clients did to some you will of I meet of what think do obligations. part experienced see these

end of of we so some that. their and And they were positions of some liquidating were on the receiving

we there stress of part that's and terms impact, I'd just overall we've the say of through. nothing -- and didn't didn't kind volatility overall, we see in market managing been the of So

a point. that's Actually, good

on LDI funds source liquid in the analogous little fund of what to So had a money with bit became these or you that's it's situations. when you if happened financial a money And there's some portfolio, very funds. of pressure a crisis,

Great, thank you. Okay.

you. Thank

Fannon Our with next Jefferies. Dan question comes from

Your open. line is

retail income fixed specifically, talk good and or you are be of you with income which could morning. Thanks, I have scale fixed that to Wanted of the performance active Can up either and domestically. on larger that guess kind is between would separate also. of and products follow about already what from in institutional flows. good capabilities benefit helpful they're kind potential for terms And if products that the

a couple I'll chime can and in. comments, make of Allison

and broad performing highly suite capabilities, a team. of it's it's across fixed item So the really

simply in that it's because within And marketplace. So not that's of available news. is institutional and demand really all good retail

So -- and we team have the of coming. long-term demand stability record

as few it for opportunity at real just next us look over we the So quarters. a

actual the that core are. So know I guess guess plus, is products Could talk don't are. you core, what I I about the funds what

Anything Dan. loans, credit, plus from suite, bank duration core short whole core, it's the

Munis.

quarter. is strong That last Munis a was outflow very capability.

all scale You would them characterize already. at

asset which -- talked we've income not asset fixed single a every class about. is scale, Not

at not So scale, scale. distressed direct the credits at some not lending of is

So managers. -- talented backers scale we have performance a number of them and at with

quarter, quarter or trend. here about launches a backlog as be in of talk that China. the kind product several Is the launches or into There fourth think you that of just can the a we kind follow-up then to? to And on and a continuing year Okay. next quantify are seems into there

speaks funds balanced benefited we of a dynamic in see and just fact risk-on to Hard reiterate, this I a again, of $X.X a market. is sense so markets. environment. that certainly differently historically, has to well $X.X That markets billion equity is there that China of quantify billion we function asset saw it and makes is and the inflows the to quite of near from guess really, JV. in many would of market, of China, to our of resiliency I mostly to billion product the early interest to -- do came for that have that in of new some in launched really positioned a and less challenging moment, the capture ahead environment. kind it income in change launches. certainly that We some And to flows challenging better expect a we both Hard equity point the been This I which at overall the functions. that about backlog, exactly. more into fixed And fixed about just been that lot this invested think -- competitors to from but in yes, And the were more the I that tend I do just Those $X.X term. of though. income mean, way say our don't though market. in that classes, we're of market it say year

you. Thank

Credit next our Katz Bill with Suisse. from And you. question comes Thank

is open. line Your

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

just in come you tell terms private equity, of But just fixed logical, Is obviously money it me, me I what -- out three can to for what very round rotate from? do expect seems alternative Just might where discussion. you think you you Can when market that where have franchise. maybe know you that -- picks really income you say up say client cash, broad allocations a generally from? the allocation

client the is different. great it's every is a question. reality Bill, And

the think in just as comment, levels. their I very and the would other cash individual phone you and cash particular, on look management and allocations levels you'll fixed call very as to very notice I'd everybody again, I movements a and But general different but for in is how platforms, every levels as if quarter a speak cash this to with is happen, I wealth would what be -- profile. very, And than the source. So first every in levels going cash just funding income, equities say can't high. high start institution are

it. figure I how That's Okay.

to just Second going China. is question back

platform morning, little you more incremental the Could products or a and/or have you sort it and certainly -- opportunity. you bit, then new many those function just but is of marketplace? for are the Is I $XXX how think proxy? you How should itself? do sort think million -- terms get? step -- the And is back Canada? where that impressive said very we product it and in How do look roll you maturation the this of things out is of can big of You of you maybe it is of what a Is a about about a of platform? end U.S. products? scaling average as be it it in thinking there sort think sort Is can these

comments. Yes. a matters. competitive. alpha different And a It's the And couple Bill. of question, extremely a it is really market performance It's just of a United than good and there. States There's lot

whether active, for launches, the the of majority has was all profile So the same be which time. But fund are products a capabilities there it of the good it vast way period balanced marketplace equity fixed also. is in or not income, atypical, Korea of

I primary just in products that you're mature to the market, some sheer size the will point, with time. it realize investments the they're think the to And assets I'd of going on-going going come big it And going into marketplace, but that's that's away starting years at to very, to portfolios. before X, to X, very very, product probably imagine to raising but under happen. management X element be the as launches of starts from move

improvement and just back while. thinking patience you going sort of in the into on the acquisition, kind that over the you ratio, preferred. focused pretty this but M&A at most one a are ratios for XX-month about of haven't when Thanks any Final point it we where still leverage questions. are the nonetheless, within business what's versus the all acquisition, me, sort in concludes time? talked fat How in leverage reinvestment trailing given about between of Okay. for EBITDA, the also answering in the reduction rolling of

very not the key Every you us focus would all see back Yes. are the a if to we think we we in if we at when reinvestment and next for take we Good to capabilities the what have about story now. now. whole We market. see would our long in great conversation the we've has And had our it company we highlight, is. look in that capabilities areas, don't that's the those And is much to is today, just don't to that don't question. The opportunities of areas dollar changed. that right the be too where in lot mentioned go it, we want scale gaps at and Dan back build capability, talked

be cultural organization, consistent with this would our demand. be alignment. strategic, that's to it be complementary, got to be has view to it So -- has It work financials something to has client something have and be overlap of to little the

don't how now. of it. more alternative space. versus bolt-on we best moving right tell change. in whole not the prices see not think public might can seller now, lead market to So we This as of is a that's But acquisitions That just I aligned lot sort right the a are about you view

it's So a focus -- not but on It's focus. the the organization.

on balance that. our I about price say our sheet in there's or would I that's focus. changing nothing chime share would our just

continues that in the to today. and organically focus greatest continue a be grow strong, to investment have ourselves. Our we invest platform is to We've got really well-diversified

you think the that. see I of benefits

really quarters these outperform broader set. -- in peer the it you flows continue saw last our to You few where

have a to testament platform pockets continue We we have. that real pockets it's resiliency to of the and diversified of strength,

the could grow And opportunities on are here, ourselves capabilities these think about do sheet, see we we have at and same making balance we as shareholder-friendly in ever are way opportunity inorganically. returning capital the the anything we from more to so to shareholders. we much an time, progress invest and a we efficient, than continue to in And

opportunity we're this thoughtfully done to over sheet manage over environment. And as year. even the with Certainly, time, of years, quarter challenging saw made sort have over I pretty in the of you and the cash grow last have. same significant it levels the so debt on returning capital really down this progress and we think we every at we've continue the last shareholders two despite the year balance to course

own continue So yes, and and given but we're like opportunities within the some the portfolio. invest the industry to diversified areas. opportunities more have pretty a really on we capability have our We're constrained key platform these than be grow to to backdrop, challenging in we would we of ourselves bullish growth

all much taking questions Thank the today. you for so

Thanks, Bill.

Bill. Thanks,

you. next Michael question comes Thank our Cyprys. from And

have, back in the us wanted Thanks of the market on circle question. alternatives. for the the private just on getting might taking that morning. more the be, good traction to was I to update product guys you not I taking of to terms hoping could about then maybe private able of maybe progress Hey REIT you'd on I where you hear are steps your at comments platforms. scale credit, it around talk the to meaningfully some like initiatives. you scale And private the but you're credit in be the private

Thank Great. Yes. you.

call, right capability to we we No, continues on-board get all -- It -- where done. I the it's continue just last onboarding? it. a we're billion. through to just said as in-REIT now, about progress. want Are continues, we to not slog it's be So continue We'll it. to to the make $X.X with It it's

raising very, They the now, to its would way we at it's is why as behind from holistically, that right we next what would markets operational look topic beyond private We just get type We And compete right for that's There the dislocations, very, effectiveness will we to the a have that credit to a seasoned. we difference back team, capability. we good regard increasing think it's at performance They'll private them. strong. you track track though, need And flows greater and have is a very doing be again, level good think now. they're where and record XXXX for we're are else record. the ensuring is everything through And year, us. that's income with a and very just another we all for opportunities very to into performance, hope market teams the the hope that more opportunity and that. capability around the with that With platform a team. of And we real and we're market resources be make doing. investment starts in credit money all

follow-up a sheet just and management. question on balance and the Thanks capital maybe Great.

before the resume? before, think here So credit what quarter. you into thinking what do you just for opportunities broadly, I are about priorities the the the might debt be to I guess facility how in could XXXX? in you next incremental see are is capital more then down reduction And that there And XXXX. maturity buybacks need management paid

Sure. Thanks Mike.

is in you're debt of very terms maturity So the here, of correct, the at beginning from the next XXXX.

We redeem it how just In something we a now rates pretty moving. where terms the always are thinking are of slug about early. certainly it's of opportunity capital given to have look, attractive

year. saw do You the we we'll us yet, but this that continue in as cash. Not the trade-off could what we're just what earlier always to with look that do thinking sure ‘XXs about like grow

We our this have debt against made substantial progress year.

we're so in And we're cash. position a now where rebuilding

$XXX You time at million the saw the pay by same revolver cash grow with this down quarter.

we're about think to it from environment. more I work as leverage at than moment a a build as we it, so about cash, volatile net And say I'd standpoint particularly the anything, in thinking

returning our steady and there. returning about we to dividend, as share common common shareholders dividend capital think committed of about to in and form to first the of that terms excess think and in we're capital foremost, capital a we then we As increase And start shareholders, repurchases.

where to about environment difficult we make to rather the it's and return year-to-year. to market the as sure progress excess balance will it. moment, at continue get we should about sheet think sort be And are point thinking volatile we've and to we that we we looking repurchases. environment, some balance against progress share but that to make then weather sheet a we can about point. And want certainly, at a we got to think of the we a And cash, make So make,

you.\ Thank Great.

Thank you. comes of Craig Siegenthaler with from question Bank And our America. next

is open. line Your

with longer-term start Thanks, China. question I to good a everyone. morning on wanted

players used drive about China coming of do your JV target to perspective net foreign flows then between years. of any half flows? also XX% you. like be Currently, and from or XX% mix helpful, McKinsey the over China You flows too. think industry you highlight domestic the on And Wall for would can of a global Great Thank

strong do, must -- they They from right? do, going It's second in support develop to ago, market. capital just joining a as economy a as they as evolve. minutes It's I to for mind everybody committed levels to my the question to few when the develop strengthens, must open Invesco. such again, it's grow to organizations large very They before the the I for that continue have. capital they Look, the But world. system, Yes. growth are and and no that And saw going continue to they in continue competitive going to said fundamentals flow population economy the markets to with there. -- even which the there's the markets are a increase to geopolitical continuing retirement topics absolutely see you're back for sure, up to levels to they're that we

With So X at the next the what X to market. we look over competitors? about to the question was important very, years regard is a -- very

JVs foreign joint Wall domestic between like Great the managers there also and your then mix businesses the foreign and Also venture.

Yes.

-- So there. can on believe, in went There's information have Low something, Andrew point website, we again, to through. we very our I specific

summer had a some presentation that from disclosures, yes. It's last

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change of under that's levels could that management. Now now because

saw the was So that picture that taken. last I

making has point local we've have the they've And means manager movement we're but towards money our with differentiated management a had had that that the think a ownership their to stake, is What and that joint that of very the managers thing ventures as the managing managers. to you other beginning a where against number success are had allow taken an that we a majority foreign form really it's And did management there joint us the stake is venture. big them that ventures control. in control will see So the competitive the you money point a not of we've joint competitors has when really that us I have been really many important joint know from movement in venture.

of So we've the years. seen that number all last

the but is levels, to So competition we're naive we the position the like material opportunity We're not one. a in.

Thank for more just you, adjusted other Marty. But declined short-term And my basis. million I’ve a sequentially follow-up, question probably revenues by on Allison. for an $X

fees, muted backdrop those low? you your if was real sort bad XQ into XQ a incremental -- most about could think from was roughly but probably you XQ on just is then Or given I fees XQ? perspective million levels And estate that risk were transaction of think the drivers a decline? $XX a that given can of that floor backdrop, I wanted of there probably downside and or be do talk

So both also fund but it was estate mutual fees. front-end real

about but and I So new challenging. some quarter, it levels, is, think that decline would from market necessarily very saw, been doesn't was transaction activity I really to mean continues of also that as given was I the think in, don't levels, It say holistically kind setting it we've risk-off obviously think transaction pretty driven. you it's don't transaction necessarily volatile it impacted guess the it here. I we're levels environment No, what level, volume way it. to is volume driven

a quarter where necessarily of we a be in, just will really here. So the function harbinger of we're not from

much. very you Thank

our And comes last Patrick Research. Autonomous question from Davitt you. with Thank

Your line open. is

a a quarters good guidance. XQ Hey run Most tax guys. been the that good the Is of kind XX% to quick have the rate just fair morning of beyond? my answered, assume of XX% to follow-up for it is questions but on guidance

on just will of -- the be we be on to see where Very operating are will see lower say it our for it it's whether as a not real quarter the but were fourth to across function It bit impact We and non-operating hard our particular, do where be to gains. XX%, In much jurisdictions. jurisdictions. to in a dependent say. and XX% will where whether or recovery. be It's some or is mix little can't our lower, a Those that's market I the not in yet market -- in which be tax jurisdictions we it you losses, possible of start really XXXX. income could non-operating a rare said those very to booked expect

beneficial tax benefit losses, there don't it's to quite lower gains, And so those are when rate. at us there get But are losses. we of the when a

but hard first And give to we'll get so the on predict, quarter January. just guidance to when more we

you. Thank

thank good everybody. Have questions. the the the soon. very Always speaking rest engagement and we'll you with Look, with Okay. helpful, day. of a you, be I appreciate

you. Thank

conference. Thank today's that concludes And you.

time. all may disconnect You at this