Invesco (IVZ) 25 Apr 232023 Q1 Earnings call transcript

Welcome to Invesco's First Quarter Earnings Conference Call. All participants will be in a listen-only mode until the question-and-answer session. [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, sir.

begin. may You

all today. and joining on us Thanks, of call the operator, you

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

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

Finally, website. earnings Invesco's before call not are The does our by guarantee provided webcast edit parties. third or net response transcripts only of our the on accuracy authorized and located

Schlossberg, June we morning. XX Financial this Dukes, open questions. up President of President Officer our the CEO; Head call will become for will Allison this presentation, Flanagan, Americas of on CEO After who and upon retirement present complete will Chief and the Andrew Invesco's we year; and Martin's and Marty results

the Martin. over to I'll turn Now call

last I'm of And and managers Greg. want partially the major most reason ground that follow the Page modest gain you in year. start saw early quarter, to the investors period highlights offsetting you, Thank for X, which declines first The along. as optimism to XXXX, if on provided part is going for money we financial markets significant

period. flows cash risk-off again, some as once behind and industry the of experienced assets showed in in sign and pressured volatility COVID-XX again. the [ph] level with were during safety and bank us. markets failures we pressures Inflationary heightened now easing March reacted net that several financial are said, across Investors the pandemic of That all persists

industry, for industry considering margin is the platform first overall mix our feature quarter. growth. supersite Although $X.X to inflows net the the return the across progress especially Invesco generated significant quarter, in billion remains organic lower organic growth This during

this intentional demonstrated invested net in by was institutional sustain these Fixed which ability have and quarter. inflows been cultivating Invesco's quarter throughout strong in full client all growth market the the the driven has cycle. during relationships. we've of Growth Each experienced ETFs, capabilities, areas areas to deep channel, for years income

net XX has Fixed income straight delivered while the flows straight flows net XXth for for institutional been quarter, quarters. the in now channel

later, As pipeline remains well for future we'll our strong telling for growth. discuss

business positive in the I'm vehicles and this assets have that income of quarters. Our solutions net area. broad-based the quarter. is XX business been business in strategies. equity we significant the billion this confident with inflows flows inflows growth of have both $X.X returns institutional now at to XX out ETF fixed to helped in appetite long-term ETF drive last Meanwhile, net long-term see investor in risk net will quarter, Growth

flow before out Net quarter class outflows still were net XXXX, remains flows the our environment. this meaningfully first long-term in since outflows best headwind half billion outflows net than from billion with This fourth to global but including while less was the fund, markets in $X.X $X.X quarter Net developing a in the in compared experience equities in active XXXX. improved equities our challenging quarter. the the in a asset being

mentioned. [ph] business our uptick Greater with that an billion the China as As industry period of outflows be the to income call, rates COVID-XX first discussed midst the policies for industry-wide, primarily direction, I fixed higher interest in redemptions transition in is have earnings unsteady we in of our income $X.X experienced net continued the on led markets Chinese post in consistent quarter, the last just and country months to several fixed

of XX our companies manager China over market remain known remain near-term in the in operated the foreign we in China bullish in on extremely asset Despite We long ran the refund industry. opportunity fastest-growing XXX the challenges, term. and the largest

market expect XXXX. for the the be We inflows to second balance quarter, product we recovery and for in on new launches of the are optimistic during

difficult. Let We from experienced in $XXX quarter. in the slowed our turmoil sector three industry capabilities. estate net higher that active financing were briefly period. billion transactions were interest banking $X.X the the market markets million private on long-term in touch new rates CLOs market of and the CLO Real launched raised in me and across made and very We first as inflows more the

investment into is and minutes. our However, diversified detail It styles. get direct just performed well. geographies, will in few has across great real sectors Allison portfolio estate a

priority. we a the common cash strong well our is growing market pleased having conversations challenging opportunities be we've to approved continue note portfolio facing. effective conditions on our I'm may and had markets return estate growth more share that managed, clients, which increase a balance strong our are to quarter, to constructive real in made per new While maintaining our expect our capital top a and reflects been we a with flows stable in cash uncertain X% and shareholders, source steady investing providing business, to the and board $X.XX our this due to position quarterly dividend as despite sheet

from the decade. the credit run us providing increased debt levels we've size Long-term moving our to billion renewed at to and in And forward. lowest $X a facility $X.X significant of over billion, flexibility recently continues

has leadership are and executive Invesco. aware, several next team. the February, Andrew position retire June the our -- I Andrew's for build that accelerate Schlossberg employees, and career more of placed leadership the over's we our on experienced leadership Board and successfully our firm lead into well of highly will large announced we than excited further team. earn Andrew, market-leading executive respect executive team and as you're and I'm the clients growth President on the that future XX. to to the Invesco leadership led as chapter. of on Schlossberg Directors has take of last in businesses CEO at when Andrew Lastly, XX-year

This more continue be XX Andrew is through excited. I the had, as of from work team experienced will with team of leadership rest and Invesco's Emeritus end the June the could and Chairman XXXX. Andrew, from I most not talented ever ELT. the Alison to

Before we invite like to to introduce say call I'd Andrew? Allison, the to a Andrew, over turn words. him few

to Great. Thank good you, Marty, and everyone. morning

in Let years. grateful me to tremendous a CEO industry, I his these truly how as been saying Marty environment. a well he's past to win start by positioned Invesco's Marty for Invesco visionary am extremely and fast-changing XX leadership the has in

leadership client have I've evolve at have firm. talent closely evolution working ahead years I'm a clients, and our XX have Marty shareholders tenure seen during of and our at the Marty work needs, a legacy our And Invesco. been of during part this updated many foundation routinely for the that of my to the and it during time, forward of with the opportunity team developed looking strong and develop his And everyone this to and of Invesco on priorities the hard our as years And our CEO, strategic firm. over changing dedication build we and

the I we capabilities. right know have that

force relationships, client in team come. leadership and have We a place strong executive be to to in deep years industry an for the experienced asset management talent

enhanced through assuming and bar a is new quality. CEO looking a technological once change high developments, delivery role forward for a with client our the I'm to meaningful when, at time also capabilities going investment again, industry

equities to an global markets, with capabilities income ETFs, As active strategy that and offering. and and fixed organization, we're Greater including we've private the discussing of growth solutions our active committed been you, key all China, our

our these evolving and And Our positioned capabilities executive to priorities, shareholders. profitable pace as over growth is our and at capital driving a with committed focused capture also financial time. demand sheet relationships we're clients leadership on and team continuing and and enhancing of noted, high to I'm very strategic well further both return balance Marty to develop further deeper these even with conviction. to performance, strengthen level

And I'm of I the with in forward engage deeply time to to and come. to look and spending finally, with excited quarters working community, investment the all years you more and

to to more going with And Allison at a to over look our it provide turn I'm results. that, detailed

Andrew. actively three-year you, with the X. quarter of and on in the XX% first half benchmark top Thank start good Overall, investment from five-year basis, And in of in and fourth beating Slide I'll a both a everyone. funds with or the morning, managed XX% peers XX% quarter. improved performance up

have fixed demand. strong strength client income their We in performance and strategies solid balanced for

alternative Performance lacked performance global positively benchmark strategies, is but and and strategies. number certain trending a and equity U.S. of equity

by posted first Market to market $X were movement compared of as billion the an under market X. increases, the $X billion dividends trillion last as most and continued $XX increase management billion, exchange billion. of ended gains AUM, reinvested quarter net in We assets increased money despite quarter with Turning into Total Slide $XX to volatility. inflows foreign indices $X.XX products. inclusive

organic return $X.X should flows, Invesco the managers as our again diverse net long-term The of in to growth mix nature growth. improvement inflows ongoing first net I'm in quarter. the we once in demonstrates pleased organic of the to asset uncertainty note markets, among given terms generated billion a further financial business in and in the place best-performing

of billion in generated quarter of moderated while compared in long-term of to quarter billion $XX.X and outflows as with capabilities fourth active million net inflows $X.X net first net Asset redemptions year. the strategies $X.X the last

highs this the rate. experienced and quarter. all quarters. equivalent has past for organic XXXX. contributed ETF ETFs, a of the been quarter Marty generated in of including industry long-term across annualized inflows through $X.X X% from our areas, capability ETF institutional the to first net Invesco XX the Volumes net of our Key the been the the have inflows down first But to growth of now XXXX quarter out ETF XX income billion channel, first quarter, in fixed record as in growth business noted,

quarter The in our billion AUM grown over XXXX. QQQM now NASDAQ since launch and its $X of one in ETFs has this XXX late top-selling to was

equity XXX in were and saw billion included alternative asset ETF. income outflows also in our We commodity Weight Partially S&P bond which flows are and BulletShares offsetting of growth ETFs strong our class. fixed ETFs, and Equal net into $X.X currency and corporate

We net both Net were while of the in billion during and in outflows the Americas $X.X net first roughly quarter. channel retail experienced Asia-Pacific were outflows. in breakeven the EMEA, flows

straight net quarter basis. As top of strength We global fundings highlighted $X.X first income, equity largest X% garnered quarter. the on of and quarters Marty to responsible in in to our billion. the channel our for of were for XXth growth were several call, fixed mandates all inflows institutional net the an three regions accelerated institutional inflows annualized in the at After the

to both Americas Net mandates. Asia-Pacific and in venture to geography quarter This were for China channel institutional were several of slower X, business. joint improved to Hong our mainly funding in Advancing the the flows flows last breakeven Slide and as by as in our and net quarter well growth due as compared by the offset turned EMEA. positive redemptions Kong net and retail outflows in Japan in institutional was

Looking capabilities. our first global in markets outflows long-term first billion to in equity quarter, by global at flows in outflows funds, billion strategies $X.X compares strategies and class, active net included the asset by developing outflows $X $X.X quarter, our of developing from moderating markets. which quarter, $X.X improved led were in the outflows redemptions from the fourth of including billion equity billion of net equity Net in

of income $X.X garner taxable fixed products this that exempt as higher mutual we both Growth this year. the offerings inflows well franchise, see opportunity ETFs redemptions and income long-term spoke tax funds, over of income full earlier. depth net the as fixed our class and SMA. in remainder in income and capabilities the breadth This spanned vehicle quarter this Fixed Marty reflects fixed Chinese global in of including and despite billion types, range of asset in

were outflows net and real by of million. net the raised first driven CLOs three direct inflows Private that experienced quarter. $X markets $X.X of billion the inflows Alternatives launch estate in million, net aggregate billion in $XXX $XXX of

driver primary strategies. outflow. private outflows, net loan Currency mentioned commodity alternative in were I markets growth were outflows these Offsetting ETF bank areas in net of earlier, and net as the of

offer like in had which billion we portfolio, March the of we take invest I'd range XX. and estate investment direct assets of the risk-return estate across moment as highlight real business, to of equity. primarily a full our our Through real spectrum, to real under styles $XX management estate

which less We debt, global portfolio. of also estate comprises our in invest estate than real real XX%

properties type. span properties The Our development, one Commercial are direct about real our properties fiffth. of holdings property under estate our one including of by about comprise assets diversified retail and one sectors, remaining XX% well management. account and nearly quarter mixed-use Apartment properties other medical. and office for industrial and self-storage third residential specialty

office the By in and are is total Asia-Pacific much outside our our estate were within because the each adoption holdings geography States market as United December are XX. are for where type. across dynamics estate diversified significantly funds property U.S. office value, of asset XX% the remote Finally, in of those than our and affecting in real space by measured approach XX% we EMEA demand working real of direct use funds average lower of and model the the leverage direct approximately Several our was but loan-to-value different

specific fluctuate time, funds. These over across figures they may and vary

As over markets balance strong of real demand. activity quarter we a slowed private driver growth during estate Longer more to to be markets footing. capture expect to term, transaction a we the expect activity and direct and until find more we specifically, mentioned earlier, in year be muted and position are real that first Marty estate stable would the the of credit private and

And now moving to Slide X.

was pipeline first net last long-term We decrease billion $XX had which at input. billion contributed in quarter. $X.X quarter, end, pipeline quarter institutional to from from $XX.X a the our pull Our of through billion good

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

So this significant the on place we lower the the range, that of and view fundings in this end took market as the that given strong is quarter. but first environment pipeline

the previously, two take cycle is to versus quarters fund, longer the three running downturn. prior some we funding to market range As market the noted we've quarter our four mandates estimate would the pipeline volatility is and in to of to to causing three

growth mix into more Invesco institutional solutions global a helped Our as as client interactions, and well of opportunities. solutions pipeline of has reflects our mandates quarter as of for the have XX% capability the funded that business the institutional enabled We sustain three The now. engagement in pipeline first we about than several diverse recently. organic ongoing new but embed years

revenue than days the accounted first attributable fewer $XX was quarter was million. fees million the quarter Net than X. million fees management $XX lower higher Slide and to decrease of last $X.XX X% mainly of million last The the two seasonal in $XX which which investment lower first from revenue. nearly billion in This partially performance $XXX were lower a to $XX year. decline and lower million quarter Turning for or the by net in in XX% quarter, offset quarter was fourth first or of

lower The management lower decline the first levels. last from of year due was quarter largely to investment fees AUM driven by

$XXX by compared on as than adjusted were first $X Total offset increased seasonally fees. incentive were $XX quarter quarter taxes million than million XXXX. prior as the payroll the operating lower expenses of first quarter benefits to lower Compensation the largely compensation fourth by quarter the expense in the and and lower paid $XX higher million, million performance

$XX is this to changes. in organizational million related other expense of and compensation retirements executive quarter Included costs

costs additional the quarter. to second $XX approximately of executive We recognize million expect related in to retirement

line to range outcome when revenue compensation end At cost XX% we executive variable in upper pertaining company trend been of XX% practices. we managed current ratio higher levels, XXXX we our periods to excluding to of compensation ratio year the to full range competitive performance that that decline. discussed, and of with Historically, trending would net to AUM for range, industry has end continue in the and a expect towards to towards As revenue the the retirement. the

of last quarter. highs higher see modestly $X year the $X prior lower than expenses by seasonal Marketing the than same coming we typically were $XX Marketing million. quarter in expenses quarter, the fourth million million off were

we quarter, lower lower than to our move and last headquarters month. as this costs and share expenses to due are primarily decommissioning of move were technology office Midtown I'm million in our $X software that completed our Atlanta $X that you note, Atlanta from to earlier On speaking with occur. property new associated we that not million happy Property, did global

$XX to partly lower spend lower million than G&A $XX on the expenses of prior technology were quarter due million projects. third-party

programs enable we may discussed period. from span and scale. in will invest G&A to office expenses we These As and fluctuate future spend technology continue property and foundational technology that to previously, expenses period

also from We not anticipate these levels do In going the million tax at forward. will benefited credits we credits. in quarter, $XX first indirect these recur tax

extremely approach We focusing maintain the management an disciplined to and expense are our key that hiring in capability investment areas and driving growth. are

continue has resource growth to to will a As allocation Marty have optimizing discussed priority be and top I organization. drive for and previously, the efficiently

$XXX offset declines. quarter, lower the lower in significant expenses. Now with quarter first year XX.X% a to partially the operating prior broadly net prior XX.X% than operating moving the Adjusted million lower lower Adjusted XX.X% in X. to the due $XX in but was operating income was than margin to Slide million ago fourth by quarter, line market revenue,

Excluding $XX million last margin been increase an have changes, organizational compared points of to other XX.X%, first of quarter. costs XXX as related quarter to basis would retirement operating and

of than share and 'XX. was than lower first prior lower $X.XX $X.XX of per $X.XX Earnings quarter quarter the

these Excluding related executive to and the retirements would quarter changes add first earnings other in to per share. organizational expenses $X.XX

pretax for XX% impact quarter the the this to rate income effective primarily non-recurring non-GAAP quarter, may in was discrete estimate XX.X% lower first and items. investments than in and and vary from quarter, XX.X% our due The gains year. seed due estimate XX% on rate actual between to be tax We the jurisdictions. on to second prior tax money of of tax this effective the lower effective tax items nonoperating rate The

on up I'll XX. wrap Slide

at total and the debt million As cash We you We're facility. strength equivalents in a decade. of of more cash and steady Andrew, a balance $X.X and remains Marty on lowest level earlier credit our and X sheet building ended progress borrowing is with $XXX billion from its quarter than making priority. heard critical

in The coming period first and higher we quarter anticipate typically quarters. is cash seasonally cash fees, building a of the

credit under both preferred ratio X.X was Our defined agreement end stock quarter first at as our of leverage XXXX. facility quarter quarter the the and line the times. was is our If ratio, last with X.X first fourth leverage quarter, times in of included,

note quarter. despite X% our cash we're our share, and approved flows common our increase of position been uncertain strength this to per have markets board cash $X.XX earlier, effective the facing. in highlighted sheet, dividend a pleased As This balance the reflects to quarterly stable that we

our well as million with five $X.X also capacity senior to the January from facility as for increasing years the $X redeem $XXX balance favorable the We to credit additional in for This our XXXX. terms billion flexibility we another managing maturing of prepare renewed sheet as of note facility builds billion.

managing Markets have pleased Overall, modest There the be horizon. remained signs quarter, could progress on expenses and with volatile the made in been to methodically growth, returning thus also tightly have strength. sheet balance recovery 'XX. organic I'm far building that a we this

in Our and navigated ahead executive stronger as past. hard in capitalize opportunities future growth I'm team has on poised of Andrew volatility era. Marty, where new market There's work successfully a Invesco firm We're of we they a excited into and lot us, a partner emerge market the emerge. the recovery lead with to and to

the ask line open the And operator that, with up we'll Q&A. to to

Our comes from Thank you. [Operator question with Craig Siegenthaler Bank of first America. Instructions]

line is Your open.

Thanks, morning good everyone.

Craig. Hey,

question on China. is my So

long-term industry? retirement? rebound, the in not China what's also versus be across in And populations world, given your talk really improve about on Wall have interest guessing in one in you could a not factor. I'm driving strong Great rate seeing comparatively JV the perspective U.S. can backdrop flows but including the And and much the pretty throughout but any of So you're But dynamics, China. aging the bond especially net you low just China, redemptions

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

has have strong as changed. very I single in It's opportunity greatest So not said, very, management, our and position we the view there. asset a

economic and coming in China they're were focused growth. Andrew and I, just out ago, on this and happening frankly, COVID of period What's absolutely right. I leadership, two with You're really the really is weeks we feel

I actually that But a frankly, some in first quarter to last energy investor we follow in can to feel year by change you before. period towards behavior is it year, redemptions products starting high. And to to saw behavioral not second anticipate look behind if starting as and this start the income early sure, really the of we're again, and the for see do will very, half is look -- markets And and more that transitional at You balanced December that. fixed very in equity there. the the China.

continue about term. to bullish be long we the So

caused set industry-wide. drive would saw say you in drove Craig, and investors obviously specifically, And mean, really just of Yeah. redeem a that quarter, increased is spook the I lower. that redemptions prices and fourth it what I bit higher the to yields really a and

really So the I around we to and seeing are your what behavior. industry, that phenomenon think in industry an was point that drove that

second pronounced of into the begin what's unfolded very as lower. we first was better the China. we're product moderate drive in launches for lot happening flow quarter. launches And drove quarter seen activity It We've as also a starting there. you feel see product That to it coming first sure the know, and definitely as the quarter

low of there. consistent industry four quarter, in terms and with flow capture they the were of only lot And so we And first relatively a in dynamics. launched that the was products, the again,

to more optimistic We're in the quarter. second see

product the We phenomenon dynamics out. played have and pipeline in modestly of we're improving have and lot that is pretty optimistic launches, should a strong a of sentiment market that itself

are especially some you thinking us can can't like any to I'm term that portfolio? step around really as and details Thank I be a is And comfort But just And take versus of you can there long is those that. more billion be office much how estate Great. that as in data or behind then us Allison. business. interest ratios real give of vehicles redeemed redeemed? $XX give that loan-to-value, permanent the appreciate back, the vehicles you, coverage, AUM high-level a follow-up,

Sure.

not percentage answer be could if me what I Let sure I'm redeemed. a exactly stab. could take

through I our to redemption a cycles is, general, would average of see in say and think on we what about X% AUM I X% queue.

than You little be that would times higher a in expect stress. market bit of it to

You'd expect little lower be better it bit in to a markets.

say than few to disconcerting way. get of the higher probably those bit moment, some not And running redemption it's market X% canceled. usually we those that to It we're equity also I'd a a fully quarters fulfill that at of takes requests a actually some redemption And X% but in see little then in of times recovery, requests.

So you manage through, into it unusual relative and think it we'll see where sort it past goes, as but nor with discomfort coming about is to we now cycles don't feel where any we COVID. is

of I we've down would in managing since exposure note, began been XXXX. COVID our office March

look coming seen a noted, Today, and exposure when in So impact about States, made in about XX% to quite even APAC, of it bit that's going like to going lower you the have that's office places higher an to It's portfolio. our be United U.S. to And XX%. more where down the trend where we've our up enviroment. XXXX, aggressively you down not total we at as the into was been it managing just in office

loan-to-value, In lenders value, say, a and it's have I that. whole those nicely. diversified. we well say it's up have than No lot really leverage, I and held that of to of very in funding, running of it's feel we higher a a exposures anywhere like loan and good diverse sources concerning sources lot the about not our generally of also terms will terms of would XX% speaking,

you Great. very much. Thank

Thank you.

Our next from question Fannon Jefferies. comes Daniel with

open. is line Your

time. different areas probably Marty good given talked Curious ETF, you hoping have listed I you're is morning. initially about margin you could areas active China that some have of the years -- or expand presentation Thanks, these market been was talked were the in areas if today for couple solutions, fixed how the changing when Andrew, growth, team those outlined than of upon about the and ago? all backdrop income, about on a and increased much about the focus thinking of less

And been terms Look, where talking about changing any beginning, I've needs adjusting priorities Dan. career, and of of all. I we whole at been in our those where the the putting I our client and Thanks, those priorities course like Invesco, priorities to at year them over the XX-plus and continuously a Yeah. you of said anticipate going and strategic the Allison over strategic really we've updating see two, years last are going. all at and have been or together Marty that of frankly part last changing don't my

we I what how competitive come where we is on. say client do function we grow up will believe a really demand And to and But we they're would where of them. with have strength think build

franchises. also And where we growth so and barbelling emphasize highlight markets, between client the what to of of would private a and really before. areas will have strong heard and the sound needs that you've similar I I'd is the ETFs part indexing huge

we China cycles. regardless and about and of and market a flows as geopolitics for and in growth believe us, talked ebbs We've that

We transformations and have equity an And strong income active we're scale those. in going continue have solutions and we differentiation franchises our fixed to with we're and active going and ensure to to we're quality And back for through office continue enhancements. in both to going and middle the been scale global about on particular. technologies build foundational we've investments with in to emphasis and innovation talking

I And execution accelerate focused get we're strategic deliver. -- continue at highly with what going sharper continue guess to continue on on and to is team evolve our executing them. I'd The and to pace we'll to those the to regard look that is say to

you right continue we'll we now, where keep are much to pretty that's and updated. So

That's just helpful. clarify And gave some wanted Allison, the then, of quarter. to the expense for numbers you

million a there benefit. onetime said was I think $XX you

rate kind based the levels? could the of think But expense in was the about the in I got talk what of if quarter that rest first G&A. in about what maybe upon we terms we right as you think here of run year

Sure.

$X So yes, indirect there not I and million was noted tax in was a G&A, credit would that that that recur.

to So executive to you incur another to of of we million expense quarter also unusual inside second the we related $XX comp I year. expect an noted shouldn't have of our changes. retirement that. same expense, this million the related expect $XX in that And

think we And flat flat we course, for equal, so expect would that beyond quarters, would the and recur $X line those, won't next you would changes. market $XX of that's but next about when things million all we for with variable say in being retirement million expenses comp, as expense, the roughly hold roughly adjust variable I few comp plus adjusting the can of

Thank Understood. you.

you. Thank

comes UBS. Our next question Hawken from with Brennan

open. is line Your

Beatty Adam you. And This good Thank in Brennan. is morning. for

also the if going Just discussions and in wanted said institutional is fee if pipeline areas I you. the that there, you interest. to blended products pipeline, past, firm-wide rate XQ ask same Wondering the to true roughly about all will, still Thank or the that's are the the And as think pipeline after maybe the institutional the on blend. how you've fundings? of pipeline the

Yeah.

me Let chime make will of in Allison comments, a here. couple

let I of very in talk client in and me were about strong. just are Asia. as China So Andrew the I interactions mentioned, States, outside United out The

equity while to which actually since Japan, as at that's income fixed look in There's equity. the market, has been demand we equity particular, continue a also, that there market We the institutionally. case, growth global Japan, in a particular. expect been in for

the of in historically in we credit of interactions very it private the area the been our along against very are we're And extreme sort more is and an much probably have just real it Andrew passive side particular, recent believe that, line market, I and been success and most is into in that the run on strong positioned has whether you've heard oriented Australia. very that what client Australia, barbell estate sort where of interest mentioned very be strongly

it's the institutional income, the in particular, for be market actually [indiscernible]. thing continues an area same the UK, us, in to fixed And

right heading all institutional it's -- way to So but

mean, multi-asset, I just Marty with private we're strategies markets fixed alluding positioned more interest be we're of the it well and that demand. investor more all was indexing in or sort to, seeing where income,

of us for delaying going One institutions going for rethinking couple that we thing decisions to last of clarity. seeing motion the looking are the capture. share as At more details maybe quarters, sort in are It's is to we several though, of opportunities definitely think those that's I'd same allocations. putting decisions their time Allison over say be the it a some on in they're is dislocation market can with

a both it's of ends So the of story. bit spectrum

to points. rate. rate the the ranges actually I does from mid-XXs And -- Adam, just add tend to mid-XXs from been basis run very up nicely. on it Yeah. holding fee has fee It

information portion alternatives comprised be specifically, equities you we of on is shared that a pipeline markets would think primarily. as the you X, active of as and about can If private large the well see that Page

on we nicely reflect running really pleased the I that side. replenishing of is is composition. first had fundings in but fee the and the nicely it way. it, in equity higher was equity does recognizing active component the holding a It see barbelling terms up quarter, some pipeline the to active noted, So Andrew of in well-balanced meaningful it's

in callouts. Excellent. the on future, a unusually But be had I on Thank spend, like I in that all trajectory couple quick third-party wondering that the you've the that what if But sort in terms appreciate curious there? outlook just follow-up of just like it control, in you of you just got might just that. for cost G&A, then hand. and was of was well that of detail. for you. Thank the terms sounds looking And pretty a lower

would and the I you're enhancements we've noted, we to expect and quarter, more. see side this on was as G&A that technology, been foundational low making, show it and necessarily. would that property It expect going hold don't in technology. office lower third-party to I But fluctuate the up spend

response my quarters, the would to flat next in think and for expect I be expenses roughly to excluding comment the the excluding expense, So I around retirement benefit few all question equal. indirect Dan's being tax earlier things

Got it. That's great. Thank Allison. you,

Thank you.

Our question from Katz next with Credit comes Suisse. Bill

open. Your line is

very as Okay, your much. your you congratulations thank phase career of well. and next on Andrew Marty,

to to mentioned you seeing reallocations they're in So terms Could market, you where coming Andrew, And go spend? into you of see from maybe of just where talk by And back opportunities? incrementally, lending? new you're bit, fund the Thanks. of direct to institutions. private about coming credit the the on sort might some layer down the a you else opportunity. little opportunity need you private next then some talk then, where Can

a here. have couple I'll say of Let me comments and

CLOs, is strength So first of of and The is core loan franchise. all, comments. Bill, that the bank thanks for the your fundamental

We direct see have opportunity. do We lending. out been an building the same as that

know space. have But also we performance. some crowded We good capabilities for

So our that's that are right area led. on focused us now tends Australia an a manager focus for institutionally be is see Frankly, certainly capabilities. in on also private credit to we where a

goes. see we two we'll where those again, our there, capabilities add-ons So and there's think opportunity. core are of But that

this, there. know I I'll chime add don't I'll let actually that anything you last Andrew say in part question because of I there. the think interacted I'd if and

in to where years. key -- we for of expect I just continue how expect growth the would terms we exactly what the we've In two to that's last been say fund doing capabilities, to

market expenses And lower Obviously, fact the been last months. very you that's the a for as about backdrop. so been XX we've that challenging think against managing

We've a been since did ago, years our key couple these investing consistently capabilities. fund throughout strategic reallocating and review we of have we growth been expenses ever reallocating to

tightly of the the well all holding have alongside our investing fixed markets, expenses business, of the growth very and China, growth growth way really private been maintained franchise, managed, ETF our So of that. along we the income

it's focused That's strategy. So that's want not new I been just sure make a we've what as team. to exactly clear a on

bank Allison to up And to to Bill, and that. emphasize I our going then well question. demand to private add there. said going last that estate strategies markets, reallocation credit, run and distress continuing just Allison's private What thanks and was pick towards real see grow point long the Marty lending continue. the that which both over We debt talking loan equity as the Marty's about continue is And what for to on comprises is it's as and to direct would our

their early seeing actually question passive into cap-weighted on we're income moving of people think beyond seeing thing. we're the from, terms benchmarks active and seeing. fixed actually moving out to which to other equity One, and a your positive forms couple a of it's it we also is come a real indexing, both we're strategies, In side, about money things pinpoint but where exactly. But little of

of private bit emphasizing working the alternative and markets towards some their early We're people in days their credit. across kind that's were again, of them also reallocate are a portfolios we leaning taking longer. seeing through little things is But as more that private portfolio

are where the those So we're areas some seeing movement. of

just Okay. through anticipation go the build January the of that in year. as Thank you a mentioned year sort continue of you. down debt paying to this of next to balance And you follow-up, then sheet as in

Looking little versus about M&A, that, you what think might you. a bit capital beyond could you priorities need return? Thank management you capital about talk and how

Yeah.

Let me it comments over. and make turn

just not don't best as at job team done squeezing of the of And talk sort in an we've go growth about out It are of that a you our reallocating business. can Andrew opportunity that less and and done of areas as into management I cost a forward. really -- it, priorities the probably So and high Allison has change. level, reinvesting think changed, we've is areas

thoughts why and gap you We've has we Andrew, it pick up always looked if changed. not with don't do a at really your M&A organically, that fueling there? strategic as can But

sheet moving what Marty me remains just have improving executive team I We'll to and Marty forward. and Allison balance absolutely to Yeah. significant the and the described. for mean said, leadership it that continue our commitment the focus emphasize a priorities

continue the and to said, scale the have at the M&A, we priority to we forward attention to feel M&A pay to and position business portfolio strength feel really our but with of Marty clients, the have have, the the like regard we move We'll we it's geographies, With we just environment, today. good businesses to as about the not moment.

would a over we our is all about good our I can of the position very this a six put were the $X I opportunistic. midst that on pleased to is the that balance in We terrific, sheet very able we lenders. focused we're got strategy where improving weeks. feel group have, add think very capabilities we to the very to be the only but balance of environment thing billion We've sheet. in supportive last of I'm raise the

to able to our a that the manage to able I profile position great upcoming of think 'XX in it pay be to both combination the cash usage of be and us revolver. continue of a down puts leverage off to at

And $XXX beyond XXXX, is million. in our that, it's maturity next

structure down be we'll position capital a our terrific I in from to there. think manage continue to

and we foot. ourselves we're our put front I think on operate So to feel a we position continue anything, if front in like foot, on our to

you. Thank

Bill. Thanks,

next Worthington question Ken JPMorgan. Our from with comes

line open. Your is

Hi, question. for good morning. taking Thanks the

with working pleasure all these a years. been it's Marty, First, you

Franklin First then Invesco.

the step career. next luck your best of on So in

fixed transitions cash? going and coming money On better is that income, And money of mentioned capture Asia, as class as China is one another? largely to? is money of that there? seen Or to of going the equities from it times, it Is a out asset there a number given it to rally into where it we've some opportunity

estate three danced products you that I we're around elsewhere. be CLOs? what going impacting of demand terms more this in I Invesco's bank said are extent loans rates yield-focused of higher like contrary for Asia on of CLOs and like the And think real sort popular what's in times. to to raised outside seems of we some think to seeing what a China, maybe to couple But you of

you're seems So there having with success standard loan more outflows. and bank then

does this sort how for of for these Asia products? higher-yielding So around circle all demand the

Yeah.

for comments Let that's XX make and me very the couple fast goes by of know, here. as just comments, years and and a thanks you your way, all

-- me let this. hit on So Allison will

so moving of there, seen mean, period of products you confidence strengthened, are time. now, equity investor which and for the some seeing in say, balance not are we right I we've and and more what retail towards the in market case So in is definitely beginning products the seeing China

there. as I again, I just and And were said, Andrew

the confidence marketplace. in the sense growing can just You

for settle portfolios we see are like So out where investments. the their continue them don't very much. clients, institutional the more probably are of moment to I'd say reflective the understand I want to do that market of -- they to point, there sophisticated move anticipate at the they're -- that you all they When their grow. very,

So great any know we there. there's insights don't real if

really seeing again, capabilities, what been in more won't is about recently, talk we've are in not of what it's Japan, we active which in but there experience which you a I Australia, example, for global I growth there number Andrew years. is add? us been and not income, also equity for What fixed go so some has passive, seen for interest would

the one The run, market the development I'd say the on in question single the Yeah. China. biggest Ken, long China, opportunity in is thing to retirement

more is looking marketplace. going traditional asset its of And to allocations into allocations, long-term at asset find begin that think so notion the to way we and a

that movement that is distribution the sort able way of is retail way primary starting turn. of and there. see that even we're on the a to investors there also higher trends equity But invest, the the the means to Also, and digital of they're digital kind look early some at that

So for that's add I'd all now.

thanks Great, very much.

Thanks Ken.

Thank you.

next Our Stanley. with Morgan question from Cyprys comes Michael

is line Your open.

Great, thank you. morning. Good

China business. Greater So just a on question the

AUM business regions of you the other in Greater how China and about the curious think of Just versus stickiness duration your world.

retail so think if for I your duration look retail customers. we business has your or about X.X-year overall,

do And that then over China time? different cost gathering flows of say, the see you evolving curious in how Just compared is U.S. new that How in the business? to, does how China?

Yeah. Again, couple Andrew I'll a and make can of comments in. chime

mean, I largest bullish. opportunity but management. a very it So in we're -- asset is single

flows a flows make than to the that's that of just reasons on so most up the you three system very know into the the over third we industry, going global all different population, developing the to five look is markets. those And if at the focus and of next Just absolute for a retirement China size years.

over coming in. not dollars, in there's money You're new in

you're placed. strongly are to and grow strongly you're if going we So placed,

the it example, XXX and don't wealth million impact. for digital half money flows started -- platforms to so ever and are right a actually financial, astonishing clients probably they of through have big money a so on the a that differently very lot It's now. need coming Also much you just make

So early see happening. you're to what going in I'd just say days we're

the it's I most it's very, very competitive also So might be market world. very It's know, market. think a most the to structure, competitive important cost probably in the

not to it's there, there. be easy and it's not to successful inexpensive So operate

it's details. But It's have more But Allison margins scale and the profitable, we that and reflected --- have. we very in can speak in

we've would it's of the business, lot firm it accretive say, we a firm got It's but grow continue room well-scaled I to to though think even the accretive to margins. to is look, Yeah. margins a it, overall.

us noted, And we're as The China largest competitive asset manager the in XXth largest while Marty is manager. are foreign a the marketplace, asset it Chinese of the we're and ahead XX owned. -- all

And so we are positioned. very well

We very are a competitive player.

opportunity do grows really but there, grow we've the have to able an as few in also only not We market the take as to years. last been market share

a So of in gathering, cost the very overall. terms I it's of well-managed think business accretive

actually Yeah. reputation market. well the we're in been And it's our And mentioned, region recently, Marty XX years. mean the over and only as -- reminded the thing I'd on I was has regarded very it being add built just

anniversary of today of parts of that have and also the being Great but ecosystem only long In IGW, not build celebrating just the for was the all our time, there. a of year we with Wall, XXth period that that in Invesco this scale reputation mentioning, market fact, Allison we're

And longevity think so the just JV. a real our we differentiator, it's of

Great. Thank you.

Thank you.

Our Davitt Patrick next Research. question comes with from Autonomous

open. is line Your

Hi, good morning, everyone.

something there that inflows first a out unique think quarter in to Or there? UK a years. is I that lumpy you. sense finally bit Could shift the Thank meaningful real many are Is of this was emerging you flesh positive starting you happened? more? or

EMEA I'll make comment, years. number Look, for a a Andrew, of and

to enough the was Brexit. he during be lucky there So

you being feel say happen a the UK, good year, anticipate inflow funded that this things strong. to Andrew we add. lot good A focus happening underlying there's the about in was mandate be institutional the a retail, institutional here changes I and I'd we and but the And big really of work. and anticipate There quarter, to was noted, for lot in been lot -- but also are continent. of net what's a equal, want there. of I all fundamentals a perspective. So around

in the in equity it. on -- getting and marketplace legacy is -- performance stronger we're our asset particular, come a it's focus mean, demands the some UK, side the classes back, I those has capturing sort active as always all gotten had of high-quality in Yeah. we've in the and

of I'd on So largely good say the investment performance. back it's

Yeah.

of seeing the On overall. that yields performance, we're retail redemption investment improve

so And well. we're is and though, capture much rates UK over working to point, as like the sentiment improved some their their through at and as flows, as economic positioned think we there really obviously, stabilize are we environment, well rate -- environment additional

Thank you.

you. Thank

question Alex last comes Our with Blostein Goldman Sachs. from

open. is line Your

Thanks for the Alex's all. This on Luke question. Hi, behalf. taking is

over a potential operational Can other Andrew's these that you occur? As part saving and operational cost do of that number the of announcement, help realignments. could period time you highlighted of could what any you of And guys benefits just Thanks. be think realized? frame opportunities

Yeah.

So benefits, of and I'll here. the chime pick on I'll some let up well as Allison in

move few, internally at to the a let and execution to quality at outlining. us some the think it's be there's and accelerate and help right to and service. our been the and to required strategy pace results believe pace, now clients at it's priorities able that's streamline start what's us to the decision-making, deliver good going by ourselves move So strategic simplify me We top. We and going of definitely help we've

Allison? help also we've ultimately, operating quality us investment these global and to enhance us built over the over the it's help We scale platform going further think And that our time. think changes we will leverage time. that

wouldn't that about a operating markets thinking ins in Yeah. puts we on But as Andrew's really as too and on get organizational lot point and chiming the and that as in just we yet. but as way growth. savings so expenses gain streamlined ourselves takes to more can organization cost changes, simpler create very not have generate more leverage organic starting reorganizing -- we're outs are really focused we much There to additional fee around and that grow of do importantly, we improve. and We're organically scale, and organized rate Look, to grow a I comments. these making

think we'll be way. in to to more a they going very these simple are continue we point, this at think And helpful, away. organize the I changes sharing look company and as more forward So we working

let me wrap up. just And

being before, and Allison that I and most thing has future to to against. and said I to have in Invesco really ever reallocate of talking the experience and able the degree and Andrew other previously, had going high is time to the confidence areas that and here be talented absolutely assets and this executing been So a in facilitate team going be and of or degree team, it dollars high today the what about they're confidence of and expertise will growth. we've important a

So it's for clients, importantly. really and very very employees shareholders exciting

thank So much, we'll you talk you that, to in with and very July.

Thank you.

Thank you.

that today's Thank concludes conference. And you.

post this You conference. may may time. at for you all by Speakers, disconnect stand