Invesco (IVZ) 23 Jul 242024 Q2 Earnings call transcript

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

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

Now I'd turn today's call over to Mr. Greg Ketron, Invesco's Head of Investor Relations. you. Thank

begin. may You

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

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

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

webcast CEO; is not website. Andrew located Invesco teleconference edit and open our on then does and not earnings Dukes, nor turn the authorized to Allison guarantee this transcripts Officer, call provided for now Chief Finally, we'll parties. are for results our will questions. I'll President accuracy over Schlossberg, third of responsible our and present the by morning, up and only The call the Financial Andrew.

good morning today. to speaking pleased be to I'm everyone. you and with Greg, Thanks,

quarter, our second and investment and and the demand higher results, backdrop. Leveraging spots continue capabilities. economic of client complex had business suite momentum the During against several growing continued vast our drive to geopolitical broad market, we product network, bright performance we improving for our

in our quarter long-term is a which best of two X% flows, period, growth the net $XX.X organic rate, garnered For marking billion we years. annualized over

XX.X%. with Invesco. that in in was quarter, generated we channels. year-over-year from We to prior active a Importantly, on our operating institutional retail double second both XXX quarter passive the year, both operating the in in expanded margin in and first X% and for XX% of revenues quarter strategies the our high we was sequential basis with by points each our three resulted were income in over and growth This up over in the regions quarter over AUM, across positive record We operating net the up from inflows trillion long-term and reaching which $X.X adjusted ended positive and leverage digits basis.

market continue April an and increasing equity some May, NASDAQ risk our with uncertainty major As impacted the rallied up interest and the for the remained rates the assets, way increasing XXX by of we and and broadening the environment client quarter, choppy investment indices S&P X%, end saw demand continued down while Notably, general and business gaining mentioned, higher markets and towards in have results. the to most after second X%. quarter. the lead U.S. followed behavior

markets S&P welcome up However, emerging China's in market equity returns markets, equal X%, X% of MSCI the with were by a quarter, by narrow the were mixed down in were Improvement U.S. X% with the which the contrast XXX the quarter. Equity and Europe returns index continued declining spot. the outside up theme weighted Asia bright X%. X% up in

our market, On index X% ] the most major Bloomberg in while ag fixed of days by indices declined side flat. quarter, the [ income the relatively bond were the global

global have investor of broadening hold plenty be participation take increasing duration that and will rate to of of assets we to market oriented clarity, for will and All that said, and interest a optimistic on risk more continue with reasons appetite increase.

advantageous shareholders. strategic for presentation, to of performance deliver our and the we of market that clarity focus to the X returns Slide to on our enhanced and provides tools us with position continue operating believe moving So

market. longevity hard Pacific and and in joint of and which venture footprint a and profile, Specifically, we XX-year-old have strong China built includes the to markets scale XX in significant unique Japanese growing key the businesses with U.S. other a developed global years replicate and Asia leading a in

meet market also have cycles strengths focused various continue that us This of to perform and adjust and Invesco a allows of multi-asset a us to includes private in to changes to as diversification demands, and developed range profile yet market secular empowers investment range both active diverse a public strategies. client We provides develop.

trends continued ETFs. secular those client of is One for the appetite

Here, again, and well a extremely we capabilities. of positioned growing scaled with are suite

Our on focus active to innovation is access and strategies. providing and passive factor

its share ETF globally to franchise firm. to continues and its Our gain profitability the market while contribution overall accelerating

strength wealth of world's largest our market, Invesco certain democratization leading asset which the like is management is significant area channel in a growth platform. particular potential, asset and private hallmark U.S. an distribution It's given area particularly Finally, of classes with of the the an markets.

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is which is thereby you key regardless of order equity performance, investment As top expect, our active greater continuing into and of our of the enhance important market strategies net demand to this is priority quality highest retention to overall client and segment. driving winning share flows

of never relationship have stronger. and between been risk management products and tightened the elements investments, We distribution has

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been a We alternative and and institutional focused has very on private credit. historically footprint, which real strong have estate

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and market outlined, So key and the I the flipping investment strategic forward priorities conditions that capabilities. slide can of Against the to just see you flow across on backdrop Slide this drivers our X. aforementioned strengths Invesco's

global flow in franchise. continued organic quarter strong by to second growth the Our our be led ETF

QQQM marketing equates innovation market now quarter ETF fastest-growing our third popularity, in net on our This of leverages segment, recording and direct $XXX a this annually. billion this trust, equities the equity ended to represented the quarter we and organic instead billion we QQQ over inflows in largest years, and a our AUM. Growth which our benefits fee our was led our with is franchise. earn fund received product This suite, is factor-based of $XXX record but shares which continued on annual our by $XX.X we million fixed period, bullet ETF to rate. around the share we highest the The income platform. QQQ innovative the gain period two ETF in growth in growth long-term high was long-term During XX% a

$X million recently strong billion of of and inflows, saw with broke from growth also AUM EMEA this through quarter [ ] mark net over ETF that region. the We we $XXX in

which of exposures managers of for active Additionally, capable billion formats the creating in few are The June. is even exacting Invesco and launch passive recently opportunity expansion we fixed servicing ETF, and clients income. frost to [ this as in advantage garnered ETFs customizable such one meet assets of innovate space. Shifting global across in launched all $X.X the ETFs ] both more continue for energy to asset client sustainable to one its at to in evident needs, regional continued channels

We than allocations see profiles interest wider to into cash strategies. continue policy, may on green clarity anticipated investors out of this they're continue to duration protracted originally a expected, be that rate extend greater move range believe their and more some going of to their we Bank and as of shift fixed income Central shoots. inflation Though gain

accelerated, #X strategies delivered through in strategies platforms. over our the municipal $X.X into and long-term fixed which we strategies, billion we're [ our RIA placed income is ETF ] mutual client also were munis, platforms. demand and Active broker-dealers of XX bond fixed garnered income in inflows SMAs billion more ranked high-yield active the funds in achieved. second flows part $X the in for five by with our SMA well net inflows than fundamental in in quarter, During to top addition and driven positioned munis XX to and overall We

as positioned solid annual retail reasons rapidly regions. and of also net to and to continue strategies had duration this ability institutional fixed Our had be has flows channels plenty in organic the investment positioned SMA rate have we in investment-grade industry. We're the to well and generate income has $XX the driven of XX%, inflows it across classes sourced our remain offering In income one by we optimistic our making over the growth with fastest-growing expanded We quarter, risk capture globally. strategies fixed billion in Asian to asset performance. about an of

on Moving to private markets.

credit $X.X billion second the bank notably the driven maintained loans strategies, CLOs. inflows also in quarter, in by long-term momentum strength we our Here, net of and reporting

play on inflows long-term our has It's of $X.X in of [indiscernible] flows modest fund space the second managed and real inflows XXXX given JV, year This to We in where is up well billion private which dislocation emerging U.S. XXXX fixed $X.X last seeking China. our assets, several positive our balanced led $X momentum strategies the were team also We performing dry [ debt. in long-term powder focused income the the that net was billion inflows capitalize China from quarters. Picking real our quarters demand dynamic launch to in this strong global combined. flows the last billion in on traded low that rate wealth where into Asia on important non-exchange given driven to managed continue estate Pacific net will lending opportunities These surpassed the we of and as economic maintained full management the in over its as by of coming environment assets region. flows exceptionally good year. income This strong the by market generated our quarter in the products from investors of returning environment higher note advisory into estate saw evolving has since market. REIT return this out direct continued anticipate fixed ]

equity which this in new during flow period. products of four launched quarter million also China, We $XXX added the

and JV ] Index, in ETF China Additionally, market our to long-term first to ETF ChiNext unique team, the we Europe's global fund [ launched with a a as is link part of collaboration between June, access and related capabilities. XX growth which China an space. Picking potential rapid in seen multi-asset early uniquely up are in in be we positioned share has growth innovator The on and recently, to ETF and gain this mover China.

saw fee As on strategies. modest finally, noted, pressure attributable net flows active to fundamental relative quantitative lower continue. outflows the equity we And did

management our out fundamental we pointed international that lower equity in be which namely equity confident continue quality is active to have continued emerging strategies the delivered quarters XXXX has billion have net of retail an active of the the will this and to we equity we the markedly incremental the funds billion. A Invesco. in and and equity quarterly second $X.X in top-selling focused seen several I the acutely rapid are placed previously, in so area in allocations, an capabilities at This it and as Overall, sold outflows our significant we're quarter area. $X peak bright inflows active billion strategy, performance the to been billion $X top Net global, aggregate outflows reason where growing slowed $X in high-quality market in portfolio that funds moderation spot AUM it's its in and fund Japanese income during and has which among these is rise a in our XX global market. than investment have past active on segments. However,

for breadth the also to center region view than note globally Asia are the strategy. the seen provide of long-term a momentum important market. An institutional not in and measure had in on demand investment provides the the was results. growth only where include products [ you alternative global at in managed numbers have Japan, from the chart ] that continued most Asia manage the all with in as of can moving previous continued Pacific is delivered strength a From clients and retail that perspective, with we income notably the products we other page. sold Pacific, we This aforementioned demand AUM It's AUM as our particular over across where to these in Pacific Slide markets. geographic our Slide X sourced from The $XX equity business by more in income, you of the slide. flows aggregation three our augmented this depicted billion for X. China Strong context So fixed additional to and of net bottom the chart the is holistic region, well we takeaway that solid Asia key additional grade but see that on Invesco's of of into the our an regions flow inflows scale

Here, overall note flows to This asset across investment the improvement graph across both right seen in strategies. see classes, markets. positive improvement our can all private is page, cuts of in you return This and in significant private flows the Furthermore, public you'll active pickup our and driven and strong demand bottom public the by credit. institutional the on channel. positive the net

Slide forward investment an on results. to moving X So update for

results. as times X-year comparable This this and investment slide AUM is as benchmark. in to readably our where more and our was a with relative benchmark information driving from several Investment reiterated incrementally top results to XX%, and performance our firm. key and a solid overall have XX%, priority peers last beating second on X-, basis, I quarter, overall performance performance shows in performance capabilities X- improved respectively, its As the is morning, XX% of our of meaningful quarter well

peers. At conviction level, income time our we XX% excellent fixed as strong top and deploy the quartile Additionally, of class performance on top a and our to improved, now peers money basis, horizons, across have in these AUM nearly strategies. ability we and of to of we into all X-year in asset the continue have capabilities our XX% half flows nearly have attract and the investors supporting

fundamental beating XX% acutely Specifically, XX% basis. XX% of our of focused on in with AUM benchmark fundamental are top fixed income the on of capabilities We're half their X-year peers funds above equity basis. our a our improving making well. progress X-year here and on a performance on as and beating have of been performing Half are with peers X- benchmark basis, now X-year a

disclosures today capitalize clarity So the overall further detailed on the have results, quarter time. last that before we hopefully, additional approach our over us opportunities and to provided the on have significant shared we and more and more outline context have that them clarified our

Allison and your turn financial So with the to to to results the that, questions. to call quarter, discuss for going over look forward I'm our I

the financial management quarter results. at the you, increase, QQQ. for including second quarter over record $XX of billion X for than of and long-term second billion Slide driven Thank quarter our $XX in AUM the to drove billion and $XX.X X.X% due $XX by last right. assets were begin All Invesco. a end quarter. net $XX trillion, high Of Total $X.X the Higher higher billion while was or going everyone. billion markets, end ETFs, morning, to the account on Andrew, with good higher a increase markets I'm $XX by during billion inflows the increase under

the in billion income to net $X.X revenues, $X.XX offsetting inflows. the quarter. nearly growth capabilities. in was EPS $XX first track billion drove credit debt management inflows, of half $XXX were was million had inflows first remain second outflows long-term income drawn at sheet or markets billion facility net down of quarter better an earnings the the inflows As fundamental on fixed long-term our of $X.X and net QQQ, Private in at we're quarter, from the from the and second adjusted in trillion. Net generated margin assets improvements Adjusted during second the zero end excluding managed were $X.XX organic the billion We the quarter quarter. and equity share at of operating the I'll quarter with the X.X% the net quarter-over-quarter which quarter second zero, this net $XX.X during prior most We of Andrew or $XX.X end fundamental drawn of had this of Average $X.XX. $X.X strong APAC net debt grew We year. rate of by net to quarter. operating the Partially in those at diluted for net ended adjusted in million, improved per ETF the quarter strengthened to under of second balance billion inflows. and noted, investment X%. billion nearly further shortly. zero the cover versus across the inflows paying represented drivers $X.X

As in a we quarter. do the third to share resume buybacks result, expect

to Moving X. Slide

prior asset calls, broad increasingly has this secular yields we've capabilities in in our our allowed results. and product As of as client set have capture shifts captured has us And to revenue in altered discussed been evolving demand preferences. client our net mix

portend better other events is is shifting profitability products and well improvement. demand. One quarters, cycles, range, on four slide ago, recently. revenue the revenue higher equities where our and various and revenue and reduced. the and The diversified The drivers for navigate revenue should the provide trends future note and element in current yields fee fundamental are the we trended to positioned running capability. has have ]. today ranged yields net and more multi-asset This better visibility concentration the These revenue Our on are yields portfolio risk been better firm to growth where than dynamics are you years note of client marginal where should ranges by five this net net by yield [ net capability the representative yield past current over have market

the lower in quarter. in estate with the $X the $X Alpha China as to related were related the and million offset second adjusted to X% of Performance the second as $XX JV expense implementation fees last platform the private by average typically $XXX than or increase seasonality to the expenses quarter X.X% compensation million, and in in lower which Slide shift. the offset with seasonal-related quarter-over-quarter. was $XX by partially from billion was second Net from quarter, of million to than nearly quarter, from the real quarter. costs an of fee increase was line million increased second professional average by from Turning mix million $X the $XX quarter our prior quarter. than a X. than million related The were our AUM by compensation increase year. second in higher quarter was higher fees associated AUM largely quarter was as business. Total lower first [ benefit than was increase we were higher driven expenses Compensation the the in the quarter operating X% ], higher a $XX fees G&A revenue the second quarter, to a last than million last lower first The higher year more in decrease by first due compared quarter the higher management in offset and quarter, quarter was performance Investment including first AUM unchanged the aforementioned in see in quarter $X.X in from first second performance million primarily million performance $X revenues fees in comp. driven fees increase prior quarter the second higher

related the forward, impact to the for to update to quarter expect continue on expenses. $XX alpha-related of basis adjusting year-over-year by $XX quarter XX% second million and XXX for change the and operating to the of with of our expenses we Going XX% the between margin in and quarter a operating progress lower, on of total onetime or year improvement and tax million items G&A increase continue items. We'll remainder Quarter-over-quarter XXXX. XXX income quarter. lower in were $XX be cost costs discrete The driving implementation. On XX.X% our our XXXX for expenses as executive tax tax related can actual estimate fluctuation implementation retirements basis, to tax leverage adjusted driven implementation approximately quarter-to-quarter. second rate be the rate a through effective last due positive vary a we per progress We XX.X%. The million non-GAAP and some largely point to operating related $XX effective million effective in rate points, was the XX% pretax in nonrecurring third to basis operating was organizational income

finish on Now Slide XX. I'll

in quarter, on the quarter. We that continue $XXX on seasonally credit $XXX million quarter. quarter debt sheet million the usage we of make million. of $XXX progress with as facility is balance matured to had second senior redeem end notes in first strength quarter At cash we our first net the first building January the on and ended the high XX, We a the drawn

years. down resulted now our and in of ratios, expectations. results a leverage an to to During were position of Both improvement past X.XXx, down several the ahead the the our excluding These we're a paid second quarter, leverage over the preferred net credit actions nearly and improvement stock improved our facility Europe. ratio to we zero in debt significant

depending to quarter. in a results, position a market gram ] million back improve expect the these stock more on around we Given or our position regular third also begin per Initially, expect per net buyback debt quarter conditions. forward. We're to maintain we in buy going $XX to [

on total is areas stronger net and a of the strength resiliency shareholders. And XX% growth. continually profitable and We ratio if quarter, Q&A, of committed this performance simplifying expect a to of make return range, performance and flow of our continue to will we the move driving would to in capital invest conclude, level to open building again to to financial into the with which up. sheet we high we'll firm's our XX% and progress like open also it to the growth, evident payout enhancing to organization We operator up that, balance while call continuing remain the evaluate. To

First Instructions] Evercore. from comes with [Operator question Glenn Schorr

of fee qualify. came ETFs says, The that's shift and down I result first want correct? on a bullet not sure ] rate couple of a some and range fee mix multi-asset. to actual just basically, make adjustments, [ Just ongoing that

is Glenn. That correct,

see both spectrum We of mix across adjustments. continue product to within those capability categories, just real the no fee continued there,

And a just more bit maybe then little color.

interesting. comments you to the related and And two for picking made said was you to that on APAC to forward-leaning know don't fixed the You income, that specifically, was this were continues was up? play in other RFPs related One flows out. think green the shoots dynamic China one if I

if expand So on could I comments. wonder you those two

Yes. for questions. Maybe I'll start, the Glenn, thanks

towards it's partially want hearing income flow the to volume, don't On partially add from on volume. anything on partially that fixed income, it's And retail short-term of assets side you if moving I'll demand that? come RFP income. we're the know both to and happening fixed It's the institutional things. I the longer-duration back some of fixed that's side, away

No.

on fixed income principally plus, seeing demand. which A on less And then balanced. client essentially some reform economic quite think the market China. China, and Asia the of and been we're fixed have we Right in activity in China very it's in very, the the of strong, now, side but yes, in are income some the pretending been side. the flows and and on well is particular, strong developments for equity little

with Brennan The next question from comes UBS. Hawken

been seems a on into net headwind sustainable? seeing has mix therefore, maybe towards and from benefit the as distribution revenue dynamic. and that some bigger to fee on wanted to shift what maybe it from of and this a drill a ETFs, similar away servicing and somewhat I components products It basis, Is rate do bigger though trend distribution. fee to this such as has and distribution the that have side, where less we're with net

I somewhat, distribution it Good revenue keep but would as question, we and would quarter, maybe just third-party that offset anomaly a related coming I the fee had in both it service Brennan. to about and side. way then last say you through mind, saw and the real on proxy the costs think

element throw series then you to a relationship so look you that to you to a percentage runs in do feel I shift of as looking as I a of And little distribution and going better But that forward. a finding than management on like is between think fees third-party of a a last relationship at focus there's in quarters, percentage of important and we're across relationship to and service it I there which to mix revenue just fees, XX% the think as quarter out as management third-party on focus pass-through some distribution fees. two almost those range, that elements, about relatively think consistent that relationship because such XX% be the it's have But I bit. at between think there contra

G&A? should believe G&A us that sustainable? what I a about that a professional in said that's bit drove quarter. fees about in a you how be thinking potential we going the you lower be little to this forward? related Could as lower Is maybe tailwind And color give here thinking

tailwind going costs to you from consulting, as of costs, implementation I think a just is, transparency implementation, alpha platform think trying have much expenses legal, of as quarter-to-quarter as into think everything thing don't outsource to would of those vary that are it so I types provide various we not as overall but and our the been we've system. the of only we're course, projects ever about on working

it it. quarter-to-quarter. a expect there, in I a should of line So of item entertainment, entertainment, as client you all Travels little wouldn't tailwind, that of in bit think variability but

lumpy. basically just So

from question Cowen. next comes TD Bill Our with Katz

horizon? could a relationships you may incremental if And more wondering else INREIT. there I working comments the of maybe little be on? into are diving your are unpack beyond you that What sort democratization on around in any was distribution bit retail

Bill. Andrew. been debt. I'll It's Thanks, in The recent real Yes. has estate most start.

And added the management time, Real fast about launched was along like. dozen to the Estate It's fund ago. several platforms of year is been quite that period which with RIAs wealth so and two a credit of major over that other related for platforms

the real principal are debt on. things equity the two focused the So real estate estate those between funds, we're and

the We real wealth channels, strong. not strategies debt just the demand from the credit world the also around U.S. the in on and alternative here market. But clients, some quite the progress and but in have has estate in been

follow-up, guidance. return. a capital you for the back Thank coming to as Just updated

as and about the now on from return a particularly in incremental as strategically [ to Or maybe growth, of grow you there is think a up ] capital M&A alternative side. is increasing it So earnings? here, normalize you potentially bulk story more

understand should of trying Just return. how capital that about think the durability we to

really Sure. of not are other, -- challenges one And or but we sheet can so say the positioned opportunistic. be to both. well of consistent with to balance our I'd opportunistic years, given comments we been be for prior that remain there it's past want some our comments. the we It's hard be

some the and we focused in really opportunity around open remaining to to a conversations consistent on to where to in we're capabilities may Now with want position stay fill past returning that. shareholders have where we capital

going sheet earnings going and back focused to to that growth. in shareholders balance reinvest healthy drive the So organic look stay we're We're with the on earnings ourselves capital to improvement. to getting opportunity good, place to us to more for a return opportunities consistent improvement, to gives

and but see do demonstrated over that the gaps I have in certainly exist to opportunities open-minded we fill on the we last that as the think breadth today. ability with platform organic of we've our to five thoughtful we growth any years. the remain

and. to want cash to both build capital and You shareholders return

The of next Bank comes Craig with Siegenthaler question from America.

come X% We back wanted in to growth organic to the quarter. rate the

the Given sizable versus to equities, ETF relative organic did inflows in trend redemptions X%. revenue growth fundamental net how

organic want to X%? I'm your How growth is revenue understanding sure the to make I relative just the question. trending

Allison. Yes,

how wanted on us to perspective X% because revenue revenue asset have to AUM have the your We class. growth? organic organic an on it But relative trending for of I and don't basis So kind organic do was it's major underlying the growth the by just we of kind funds. tough

I see.

back net try would exactly we the can tried where on point to more see trending the to to you there. in precision as X we're Slide We to the to further on what where And narrowed that. really ranges you'll I narrow and around I'd commentary that. tried revenue direction detail much give that and help the more disclosures do, yield right, you So as you even guide in we've give far and

AUM. there's of amount a relative fair So precision to

the is organic It that these focus with in better, more much I neutral track think the would and pressure as different quarter, start trends we've been to trending I to And growth. on almost closely focused to drive to years, But ways. that's you on. ETF at been say fundamental our it, highly equities revenue I the it's you given obviously, a trade in it should track in this has what disclosures. note. any you given of it be on recent and point new lot challenging start can think able side,

In that and some positive headwinds net only to bit. particular, them and would was bank towards starting a like years, loan couple abate that add asking in I describing. the been flows facing are over of last out in flows we've Asia alternative and were are you what Allison couple of into the particular, of credit the Yes. China a

on implementation. Just State the Street for Alpha my follow-up, it's ] [

you I go down? will do understand they'll down. $XX to think And So going? I would million to when go when that start Alpha they to be totally you wanted start but expenses have when target, integration think

that think timing to just answer implementation is in will implementation we through overall. it be to as continue to relates mode 'XX. project I question And and way best So 'XX the through really

We waves a are expect those of then ways the XXXX. our through the in onto of begin year, platform to going fourth in and quarter Alpha transition this AUM series run they'll and to

will side parallel phase. other at working testing phase. in run We're for So the of learning really decommissioning and we various 'XX least working in is through implementation and the these We're through planning that think on that. through implementation ways. 'XX this And then testing running on will I we're really be

Autonomous comes Davitt question from Patrick next Research. with Our

probably in bit on better a move quarter, the to bit to little trajectory, it. drawdown want was of I imagine I drag fee the a a obviously, back but rate April the

feel you you cadence maybe So run how the how rate June? could you given monthly XQ speak through to the And about exited XQ?

Yes.

I the the think bit the within it get within further month, us. the around weeks, less fluctuate rate because monthly I much the intra-quarter on indices the really market question on I could the much. And vary focused and seen hopefully, to days, more you've as within in probably various disclosures impact maybe also at in little a your just exit additional back, detail so that the think, markets so

we set exposures Given in have really footprint, can't moving that of manage on you market is day. a direction which diversified any our such what global given

point quarter exit XX.X exit was the for to rate, the second I around points. So which rate basis would the

quarter. yield lower So touch revenue average a than for the the net

in see takes and course, that. of continue in July, even Of the first weeks all to we of few puts

flow something flows coming from. I rate and to proud a The X% to where is it's quite up. I where revenue. the organic So to, demand. think of is simply back we're our end is with client of yield It's focused And organic and we're of would revenue. very continue focused function. revenue are driving on it a math on aligned net breadth of, difficult platform predict how testament come to exactly We're it driving the

is which the for and a a very capabilities, period diversity outline something forward in that seen net why to continue I And be time in long of broadening of last try investment looking assets all some think prolongs, the range time. I of short what and think the reasons or for over we've all to been markets we've should our one the out, we that to of if last two, us. week the positive

China with punching to is popular recovery the broader pretty getting pretty obviously political nice rhetoric a be It's bag. it heated both in parties, but big flows, question. then And see obviously will the China, and a seems it

that gain safe trade these war ] be it's I what China? tough the broader the sure, So U.S. JV you you have? a between out give would things but [ for could Or do on assurances know to and

remind you obviously, about complex business. it's on It's that one, domestic a to Yes. a is JV answer. domestic our to China thing One I'll

the So in we all of all assets market in managed the and of that assets manage market. are investors for individual are that

so a don't add I very is is you'd very And resilient. and there if Allison? the anything, business -- know relationship strong focused partner our it's and really

Yes.

I of the saying think performance that just that performance underscore flows Chinese I'd are entirely the the by and economy. the JV on the of dependent domestic

But market trade economy challenging the States domestic to would overall there and So the through is put the war there. AUM likewise, in on some pressure probably put United would those pressure on for the that performance extent well. flows our as that, investments

political So highly think the as football economy. about less strength it Chinese dependent of the and a more on

The next Goldman Blostein Alex question with comes from Sachs.

could into around I little broadly. was a business Invesco's hoping we dig strategy more ETF the

shift earlier, see of fee and and So continue sort bit. But here. guys rate to it's you lower consistent to a to little there, been your continues you growth out point the good nice that's to really see broaden

you initiatives through of of maybe look even gaining rate as as further for stabilize further that new you're existing Invesco to a walk talk bit fee sort more? little improve broaden areas where and opportunity for could us maybe best seeing you out. and the can perhaps And the you growth the your out, look ETF So some about

question. for broaden yes, down. Yes. growth the the has Thanks And

the we months XX more ETFs six something the than $X in have year-to-date. past in inflows billion I have like U.S. just think that had of

is out. business to the starting broaden So

adopt in of have, market. one movers of key of a U.S. That's to the key the active strategies area focus. growth early Some market were ETFs. here active the the starts that We we in as obviously, ETFs, especially

have going of We but billion popular, more that billion or role our $XX a techniques playing affiliated some to space, in more we fundamental $XX And think grow quantitative that strategy. into as with the both. gets through importantly, than are passive put that's but either those to vehicle have investment vehicles over that continue around investment or in remains we little assets teams

talked in of starting China, AUM. element which growth and Japan, to $XXX see a expansion is little other The is And now demand about in beyond the the us bit can our particular. grow over throughout billion States. for And United you growth Europe, in our we Asia,

to market the of in loans be to, lineup, And then the things alongside like in of fixed fundamental those been of passive growth placed as alternative spaces. then pretty days to demand. equities, particular significant and of the or continue fixed in area one forward. And a geographically, alternative in U.S. And space. on We're our bank find is heavy well going feel in strategies, grow like has has So favor commodities think continue outside been we going of back earlier continue credit there's which to the some in and income those growth that greatest markets we historically areas income very

growth has been good. the So

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So we deliver that have profitability. platform accretive scaled a does very

for you well? for takes G&A of for through XXXX the one as full and the sort to thoughts A discussion. to and earlier Allison, the you kind in continues out quarter. are as early any round as out XXXX, G&A expectations But Alpha on highlighted kind just couple what G&A outlook the for linger of of of puts maybe year zooming

Sure.

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real but and entirely can get, year. reasonable a as you with well, gives that So I I knew about but expectation I for wish the think as I precision as precise, precise

Jefferies. question next comes Our from Dan Fannon with

that Andrew, follow I where one mean, like X of was would I always to Slide you wanted up about organic be growth. something you talked focused seems I guess, comments on your on. from, profitable

it business just maybe exit So certain RFPs curious what prospectively terms or of that in have businesses? to to you're you're looking if there's looking behind done might anything like before? you Or take more maybe is what what's versus on more

Yes.

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ago, drive or our to so more flat teams generated in expense the continue profitability on as vehicle brought see investment at base expense technology year is multi-asset. in we from in continuing grow multiple then revenues the flows a hold to fixed to of just utilize And feel in least just we those and focus choices. And pretty And continuing areas. we there About to income, that we similar respective expand base investment can together And and the profitability. that described, and demand vehicles capabilities hopefully those as range on complete two I a to they complete from capabilities like well. to layer those set a be we and continue scale believe have revenues clients, assets we pretty and product

by we mean that's what area. specific So that

set them their a if then ] I distribution alternative update as your you in the to there? your what [ any into tapping an see on terms hoping relationship helping follow-up, and franchise just also then And update of broader force, MassMutual build get there's into been was product them

a I to strong that we it be continues relationship Yes. tremendously. really mean value

both really to private mentioned be continues and invested significant Xx set a and and the growing they Xx it account have currently, through otherwise, for them we've of particular is a hold in before in that that talked in wealth I been strategies the balance platforms, the sheet. to general real part of we important our on the And co-investing And capabilities. capital our market past, focus us strategies out of management about that amount are seating of that's As the their in starting the of and some grow assets. to

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our amplified evaluate to be faster. leverage Andrew they launches. our mean real sheet continue great to capabilities I investing and partners products noted, just in particular own they've partners get a variety we from capabilities, I as to future to really Yes. product as balance to just our across -- market of estate would CLO strong our And ability

for utilize and other well. And needs sources capital as to

have We more one for time question.

last Worthington with Ken Our question JPMorgan. from comes

Can funded flows. I bit to little pipeline? far. in come give You saw and about in solutions that like not haven't used one institutional thus think nice you factor a buckets up us conversation tell major you and the size recovery a institutional the

this quarter. range. Sure. kind billion pretty last I with pipeline the around institutional is billion, consistent said Everyone stays $XX $XX of

is pipeline outside okay flows not can measure of but what excellent I expect, we the our pipeline. in the of think the of find we that given just continue come what to breadth is an

of the there rate over has to our as from on last strength few XX% or seems pipeline the last come about well. saw flows over be be and high pipeline. Fee the the quarters you that so in continues flows the consistent quarter to So side been the relatively

high we've ranges really it to for the it in XX and a said relatively the side. basis long As time, see XX we point continue range, on to

as the I a real to So regions the institutional variety change, It diversified of from well continues coming no see, really I be our we one also across flows of way think well. or think, and other. regions, strength

is, by Ken, about I this have on I'd by the fundings. think industry, a two settled about we've the things quarter only is -- down for or as thing calls, slowed previous add

cross-regional, we're and a Europe, the seeing pace particular, particular, to is say credit. on up Asia a Allison but think of private said, greater in as some that that I progress picking and seem maybe at public is bit. the I'd strengths, little have really in up pace. picked it's And

to but Current gross prior relative these quarters. is strength sales Redemptions the really driven by the picked up really in the quarter sales. bit five little are really a better, it's

another do we operator, for question. Yes, have time

question from Michael with Cyprys comes Stanley. Morgan the And last

see -- expand do of for in the sort shift given tax-exempt to of that regulatory as changes in expect the ETFs you where and what out opportunity maybe deflation of could your and recent looking Just in also a Hoping market question that growth [indiscernible] could that on evolving how see on business Japan. out, in then little talk hoping how And you footprint a could about Japan about talk I you the some the and well? evolving marketplace and just marketplace you today. your accounts, the has grown. elaborate the opportunity and bit outlook business products you was to strategies

it's Yes, a great me let start. question,

is It's years about is, long profile XX for been -- a as I mentioned, there time. Our old. we've

We greatest global a where were retail retail actually -- growth income been of billion of the talking area of has investors. have wealth strategy. about around equity the last managed mix institutional we insurance, $XX this It's in and for while in Japanese we've assets platforms, little before

really of So an reforms seen us there, that and the [indiscernible], just markets, are overall we changes you not With, described, accelerated but for good come inflation long-term or that happening business and remain optimistic starting we've for the it's to year so. more some up been really about the in that reasons into of we're and a getting the markets starting market fixed that's excitement play, out us equity an last re-educated starting are close be demand. market traditionally going markets. position ETF from equity ETFs. pick investors there build in a re-interested to and into Private and increased area income to personnel And But it's the been well. also for to as further up. our is

and So brand and have it's developed piece. And really a really across reputation we position there. really, the

we one Operator, time more have question. for do

next Brian Deutsche last Bedell from Bank. The comes our and question with question

around back still and the net XX any ETF Just most area yield flow basis relative neutral, coming then equities. conviction fund? And that actually equities process the presentation if that's Clearly, performance comment that's getting made maybe there? side, rate you're a might sort revenue traction realize funds, market from of improve grow the to earlier that talk on in any Can of maybe, but have in you to focus small, there's aside about fee Andrew, across to mutual sales performance points, the I developing ETF on to back, franchise and very fundamental about perspective. how the you active if fundamental any the the the to potential you a improved accretive the from for the the leveraging XX

Yes.

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in are of strategies, very quantitative combination that or we're active ETF right some in development think now. of way stage space. time, the the fundamental I fundamental into to and strategies active going active find their much And

But driven demand and really the we're on And also net the investment U.S. in to by think in short the seen more improved on clients. more to markets it's come domestic in couple see as flow over from instance it our get to that, as other And focused yet categories, particular, we the next day, we that's first U.S. haven't to rate, starting so well that need world. I are to run the something is of it. going redeveloped wealth going market. improving performance developed around watch in fully with equity the some Every years. In

growing closely in performance teams design front sales side working both investment the the retention improvement our clients the is rate on but we team sales to Our of marketplace. with product be need there's also in our and gross where with, teams that

So I we that and think, is I a look, going expect direction think performance step the improving the in that's right significant forward.

add passive to expectations to industry would best the every on we're I industry comes focused it the we're when are to from we see just expectations active equity. outperform challenges aspect. mean to we shifts looking the secular as that. not said, in for to given continue the I That strong and fundamental can inflows and there. Industry outperforming

outflows the would highly but there more course, can where blocks those to we capability going what's noted, I our element we've incredible be the think love that have, continue expectation really inflow Andrew create margin other position. In operating we can on as we performance really on remain it can building and that's of taking something to we that the been to demonstrate here, and focused we're And every we're I every a is growth meantime, we're focused return that. on into focus to improvement strength so from that to narrow ideally an mean investment able neutral. and delivering and and of we optimistic. profitable And inch across we turn stable the to and every

potentially value areas. markets, said have of mid-cap investment And markets, think as in out broadening into mean the strong non-U.S. I before, performance small we the very those I I

So returning, demand we're optimistic. pockets with cautiously of some

Okay.

mention that happening want market to changes closing, through evolving positioned their the in to help that it subsequent well dynamics navigate clients that, of came are So and in really hopefully, we're I impact portfolios.

As anticipate for everybody this out our given to thank Investor any want interest should for We I questions. future joining your of for today, very the speaking in scale, continue to please to and ability Invesco. I call again soon. appreciate to to evolving And with and Relations really everybody to needs. translate work team the done market understand reach look our forward and the additional Invesco sentiment we've performance say to excited client profitability. and can even meet strengthen greater I'm improves, the improve

that conference. And you. Thank concludes today's

disconnect You at may this all time.