Invesco first-quarter 2011 resultss21.q4cdn.com/954047929/.../earnings_releases/2011/... · 4 Summary of first-quarter 2011 results Assets under management • March 31, 2011 AUM

Invesco first-quarter 2011 results

Martin L. Flanagan

President and Chief Executive Officer

Loren M. Starr

Chief Financial Officer

Mark Armour

Senior Managing Director, Invesco Institutional

April 27, 2011

1

Forward-looking statements

This presentation, and comments made in the associated conference call today, may include “forward-looking statements.” Forward-looking statements include information concerning future results of our operations, expenses, earnings, liquidity, cash flow and capital expenditures, industry or market conditions, AUM, acquisitions, debt and our ability to obtain additional financing or make payments, regulatory developments, demand for and pricing of our products and other aspects of our business or general economic conditions. In addition, words such as “believes,”“expects,” “anticipates,” “intends,” “plans,” “estimates,” “projects,” “forecasts,” and future or conditional verbs such as “will,” “may,” “could,” “should,” and “would” as well as any other statement that necessarily depends on future events, are intended to identify forward-looking statements.

Forward-looking statements are not guarantees, and they involve risks, uncertainties and assumptions. There can be no assurance that actual results will not differ materially from our expectations. We caution investors not to rely unduly on any forward-looking statements and urge you to carefully consider the risks described in our most recent Form 10-K and subsequent Forms 10-Q, filed with the Securities and Exchange Commission.

You may obtain these reports from the SEC’s website at www.sec.gov. We expressly disclaim any obligation to update the information in any public disclosure if any forward-looking statement later turns out to be inaccurate.

2

Discussion topics

First-quarter overview

Focus on our global institutional business

Financial results

Questions

Appendix

3

Continued momentum in our business

• Long-term investment performance is strong across the enterprise

• Positive trend in long-term net flows – strong long-term net flows across all distribution channels

• Active share repurchase program – purchased 2.1 million shares for $53.1 million during the quarter

• Integration of acquisition-related funds nearly complete; no discernible merger-related outflows year to date; combined business demonstrating solid momentum

• Reflecting the firm’s continued financial strength, first-quarter dividend increasing 11.4% to 12.25 cents per share

First quarter overview

4

Summary of first-quarter 2011 results

Assets under management

• March 31, 2011 AUM of $641.9bn versus $616.5 billion as of December 31, 2010

• 1Q11 average AUM was $630.2 billion versus $616.0 billion for 4Q10

Flows

Overall operating results*

Capital management

• Total net inflows of $9.2 billion• Net long-term inflows of $6.6 billion• Institutional money market net inflows of $2.6 billion

• Adjusted operating income in 1Q11 was $272.1 million versus $280.2 million in 4Q10

• Adjusted operating margin was 36.2% in the quarter versus 36.8% in 4Q10

• Adjusted EPS for the quarter was $0.41 versus $0.44 in the priorquarter

• Repurchased 2.1m shares during the quarter for $53.1 million• First quarter dividend of 12.25 cents per share an increase of

11.4% versus prior quarter• Corporate cash balance of $471.9 million

* Non-GAAP financial measures - See pages 40-47 in the Appendix to this presentation for a reconciliation of net revenues, adjusted operating income (and by calculation adjusted operating margin), and adjusted net income (and by calculation adjusted EPS) to the most directly comparable U.S. GAAP financial measure.

5

2Q09 3Q09 4Q09 1Q10 2Q10* 3Q10 4Q10* 1Q11

Gross sales

Gross redemptions

Net long-term sales

9.812.2 12.5

10.8

15.2 15.8

19.0

-12.0 -11.6-11.8-10.9

9.0

-7.5-6.7 -7.6

-11.9

3.6

8.1

4.04.6

0.5

-1.1

2.32.3

27.630.4 32.1

29.6

36.840.4

48.0

-21.1

-31.9

-38.8-41.4

25.5

-23.9

-31.4-28.5

-23.6

6.6

1.64.9

-1.8

3.66.5

4.04.4

16.5 17.8 18.2 19.6 18.821.6

-14.4-16.1 -16.5

-20.3

-27.0

24.629.0

-16.3-19.5

-30.5

-1.5-2.4

1.3

-0.7

3.11.91.72.1

2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q09 3Q09 4Q09 1Q10 2Q10* 3Q10 4Q10* 1Q11

• Positive momentum in long-term flows driven by continued strength in gross sales

Quarterly flows

Gross sales

Gross redemptions

Net long-term sales

Gross sales

Gross redemptions

Net long-term sales

Total AUM AUM ex-ETF/UIT/Passive ETF/UIT/Passive AUM

Quarterly long-term flows ($ billions)

* 2Q10 and 4Q10 exclude the impact of the previously announced passive outflow. 2Q10: $15.8 billion excluded from gross sales 4Q10: $18.6 billion excluded from gross redemptions

6

(a) Retail quarterly flows include retail products in the U.S., Canada, U.K., Europe, Asia and our offshore product line.(b) Institutional quarterly flows include our institutional business in the U.S., Continental Europe and Asia and exclude institutional money market.(c) PWM quarterly flows include our high-net-worth business in the U.S.

Gross sales

Gross redemptions

Net long-term sales

1.51.2

0.7 0.81.1

0.60.8 0.8

-1.5-1.1

-0.5 -0.5-0.7 -0.7

-0.5-0.5

0.10.10.1

0.60.30.20.1

0.0

4.2 3.84.8

6.75.4

7.2

10.010.7

-4.7-5.6

-4.1 -4.1-5.5

-3.3

-8.1 -8.3

-1.8-0.5

1.9

3.9

0.7

2.6

-0.1

2.4

• Momentum in retail and institutional gross sales drove positive net flows for the firm

• 4 consecutive years of positive flows in private wealth management

Distribution channelsQuarterly long-term flows

Gross sales

Gross redemptions

Net long-term sales

Gross sales

Gross redemptions

Net long-term sales

Quarterly long-term flows ($ billions)

Retail(a) Institutional(b) Private Wealth Management(c)

19.822.6

24.9 24.6 23.0

29.0 29.6

-14.9-16.9

-23.9-28.1

-30.0-32.4

36.5

-25.4

-19.3

4.1

-0.4

0.9

-2.4

0.75.65.74.9

2Q09 3Q09 4Q09 1Q10 2Q10* 3Q10 4Q10* 1Q112Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11


Investment performance – overviewAggregate Performance Analysis – Asset Weighted

45%55%

23%

77%

1-Year 3-Year

% Assets top half of peer group % Assets bottom half of peer group

Percent of assets in top half of peer group*

79%

21%

5-Year

• Strong overall peer group performance (asset-weighted) – 55%, 77%, and 79% of assets are in the top half of peer groups for the 1-, 3-, and 5-year time periods as of March 31, 2011.

* Includes AUM of $386.4 billion (60% of total IVZ) for 1 year, $382.4 billion (60% of total IVZ) for three year, and $375.4 billion (58% of total IVZ) for 5 year. Peer group rankings are sourced from a widely-used third party ranking agency in each fund’s market (Lipper, Morningstar, Russell, Mercer, eVestment Alliance, SITCA) and asset-weighted in USD. Rankings are as of prior quarter-end for most institutional products and preceding month-end for Australian retail funds due to their late release by third parties. Rankings for the most representative fund in each GIPS composite are applied to all products within each GIPS composite. Excludes passive products, closed-end funds, private equity limited partnerships, non-discretionary direct real estate, unit investment trusts and CDOs. Certain funds and products were excluded from the analysis because of limited benchmark or peer group data. Had these been available, results may have been different. These results are preliminary and subject to revision. Performance assumes the reinvestment of dividends. Past performance is not indicative of future results and may not reflect an investor’s experience. 7

Investment performance highlights

• 94% or greater of US Value Equity AUM are in the top half of peer groups and beating benchmarks for 3 and 5 years

• 64% and 96% of US Core Equity AUM are beating benchmarks and 69% and 63% AUM rank in the top half of peer groups for 3 and 5 years

• 94% or greater of UK Equity AUM are beating benchmarks for 1, 3 and 5 years. 91% of AUM or greater rank in the top half of peer groups for 3, and 5 years

• 69%, 93%, and 92% of Global ex US and Emerging Markets AUM are beating benchmarks for 1, 3, and 5 years, while 94% and 93% of AUM are in the top half of peer groups for 3 and 5 years

• 82% or greater of Global Fixed Income AUM are beating benchmarks and at least 86% of AUM are in the top half of peer groups for 1, 3, and 5 years

• 80% and 82% of Balanced AUM are beating benchmarks and 78% and 72% of AUM are in the top half of peer groups, for 3 and 5 years

• 76% and 95% of Asian Equity AUM are beating benchmarks for 3 and 5 years

• 66% and 73% of Canadian Equity AUM are in the top half of peer groups for 1 and 3 years

• Morningstar ratings for Invesco US Retail remain near all time highs; 61% of AUM are rated 4 or 5 stars*

• Lipper awarded 9 Lipper U.S. Fund Awards for 6 Invesco US Retail funds across a broad range of strategies: convertibles, non-US equity, sector equity, value equity, and growth equity

*Load-waived basis

8

9

Solid execution on acquisition-related milestones

Product line-up rationalization update

• 65 of 70 funds – representing 92% of AUM – have received the required votes for the mergers to take effect

• Mergers will take effect towards the end of May and first weekend in June

Key Milestone Initial Estimate Actual Result

Integration of systems and people At close At close

Achievement of annual run rate cost synergies

≈$70 million within 12 months post close

≈$85 million 5 months post-close

Product line up rationalization (fund mergers)

≈11–12 months post-close ≈11–12 months post-close

Fund merger-related outflow $10 billion Not meaningful

10

Discussion topics



Financial results

Questions

Appendix

UK and Europe

$27 billion AUM from institutional clients

By delivering investment excellence and meeting the needs of clients and consultants, we will further differentiate Invesco in a highly competitive

institutional market and further build our business

Asia-Pacific


US, Canada, & Latin America


Middle East


Invesco’s institutional business is well-positioned globally

Data as of March 31, 2011

Institutional Globally


11

12

Providing strong investment capabilities is our primary focus

Real Estate• Strong team with over a 27-year history of managing real estate

investments• Excellent long-term investment returns from both capital appreciation

and income• Experienced team, singular focus, and global platform differentiate us

Risk Parity

Stable Value

Emerging Markets

• Team has been together since 2001 and manages more than $10 billion in AUM

• Clients win by not losing – participate in upside with greater downside protection

• Commodities-only risk parity particularly well-received by Institutional clients

• Recognized as a market leader• Consistent, competitive book value returns versus peers and benchmark• External sub-advisors provide diversification and consistency of returns

• Well-resourced, experienced and stable team• Outperformed benchmark 5 of 6 years since inception• Has capacity and strong capabilities to meet client needs

Alternatives

Asset Allocation

Fixed Income

Equities

13

Institutional quarterly flows include our institutional business in the U.S., Continental Europe and Asia and exclude institutional money market.

4.2 3.84.8

6.75.4

7.2

10.010.7

-4.7-5.6

-4.1 -4.1-5.5

-3.3

-8.1 -8.3

-1.8-0.5

1.9

3.9

0.7

2.6

-0.1

2.4

By better meeting client needs, we will continue to grow our business

Institutional quarterly long-term flows ($ billions)

2Q09 3Q09 4Q09 1Q10 2Q10* 3Q10 4Q10* 1Q11


Gross sales

Gross redemptions

Net long-term sales

14

Discussion topics



Financial results

Questions

Appendix

15

Total assets under management – 1Q11 vs. 4Q10

($ billions) 1Q-11 4Q-10 % Change

Beginning Assets $616.5 $604.5 2.0%

Long-Term Inflows 48.0 40.4 18.8%

Long-Term Outflows (41.4) (57.4) (27.9)%

Long-Term Net flows 6.6 (17.0) N/A

Net flows in Inst. Money Market Funds 2.6 (1.6) N/A

Market Gains and Losses/Reinvestment 12.9 24.2 (46.7)%

Net Acquisitions/(Dispositions) - 5.0 N/A

Foreign Currency Translation 3.3 1.4 135.7%

Ending Assets $641.9 $616.5 4.1%

Ending Long-Term AUM $575.0 $552.3 4.1%

Average Long-Term AUM $564.4 $550.9 2.5%

Average Institutional Money Market AUM $65.8 $65.1 1.1%

Average AUM $630.2 $616.0 2.3%

Net Revenue Yield (annualized)* 47.7bps 49.5bps (1.8) pts

Net Revenue Yield Before Performance Fees (annualized)* 47.5bps 48.2bps (0.7) pts

* Non-GAAP financial measure - See pages 40-47 in the Appendix to this presentation for a reconciliation of net revenues, adjusted operating income (and by calculation adjusted operating margin), and adjusted net income (and by calculation adjusted EPS) to the most directly comparable U.S. GAAP financial measure.

16

Non-GAAP operating results – 1Q11 vs. 4Q10($ millions) 1Q-11 4Q-10 % Change

Adjusted Revenues

Investment Management Fees 816 799 2.1%

Service and Distribution Fees 199 202 (1.6)%

Performance Fees 4 19 (79.7)%

Other 33 35 (5.5)%

Third-Party Distribution, Service and Advisory Expenses (300) (293) 2.3%

Adjusted Net Revenues 752 762 (1.3)%

Adjusted Operating Expenses

Employee Compensation 300 305 (1.8)%

Marketing 54 52 3.7%

Property, Office and Technology 65 66 (2.6)%

General and Administrative 62 58 5.8%

Total Adjusted Operating Expenses 480 482 (0.4)%

Adjusted Operating Income 272 280 (2.9)%

Adjusted Other Income/(Expense)

Equity in Earnings of Unconsolidated Affiliates 2 7 (68.5)%

Interest and Dividend Income 3 3 8.0%

Interest Expense (16) (16) 1.3%

Other Gains and Losses, net 4 6 (33.9)%

Adjusted Income Before Income Taxes, Including Gains and Losses Attributable to Noncontrolling Interests

265 280 (5.4)%

Effective Tax Rate 27.6% 26.0%

Adjusted Net Income 192 209 (8.4)%

Adjusted EPS $0.41 $0.44 (6.8)%

Adjusted Operating Margin 36.2% 36.8% (0.6) pts

Average AUM ($ billions) 630.2 616.0 2.3%

Headcount 6,191 5,617 10.2%

Non-GAAP financial measures - See pages 40-47 in the Appendix to this presentation for a reconciliation of net revenues, adjusted operating income (and by calculation adjusted operating margin), and adjusted net income (and by calculation adjusted EPS) to the most directly comparable U.S. GAAP financial measure.

Estimated net revenue yield reconciliation

46

47

48

49

50

51

4Q10Net

RevenueYield

4Q10 Low Fee Outflow

Performance Fee Decline

Day Count Impact

“Substantially Invested” Alt. Fee

Rate Impact

Service, Dist. (B-Share) & Other

Revenue (Transaction Fees)

Asset Mix 1Q11Net

Revenue Yield

+0.9

(1.0)

(0.7)

(0.5)

(0.3)47.7

49.5

(0.2)

BPS

Net revenue yield is a Non-GAAP financial measure - See pages 40-47 in the Appendix to this presentation for a reconciliation of net revenues, adjusted operating income (and by calculation adjusted operating margin), and adjusted net income (and by calculation adjusted EPS) to the most directly comparable U.S. GAAP financial measure.

17

Low revenue yield products & incremental margins

32.2 32.937.1 38.6

42.0

1Q10 2Q10 3Q10 4Q10 1Q11

69.1

68.1

65.8

64.2

66.9

1Q10 2Q10 3Q10 4Q10 1Q11

Ending 1Q11 AUM: $42.0 billion1Q11 net flows: +$3.1billionTrailing 12M net flows: +$8.0 billion

Ending 1Q11 AUM: $66.9 billion1Q11 net flows: +$2.6 billionTrailing 12M net flows: ($2.4 billion)

Ending 1Q11 AUM: $35.4 billion1Q11 net flows: +$2.7 billionTrailing 12M net flows: +$4.3 billion

STABLE VALUE INST. MONEY MARKET INVESCO POWERSHARES*

• We have achieved sufficient scale in each of these products to achieve and maintain competitive margins

• The incremental margins from net inflows are in excess of the firm’s total operating margin

*Excludes the QQQ product. Total Invesco PowerShares franchise AUM, including the QQQ, is $60.6 billion as at March 31, 2011

26.724.4

27.231.0

35.4

1Q10 2Q10 3Q10 4Q10 1Q11

Ending Period AUM ($, billion) Ending Period AUM ($, billion) Ending Period AUM ($, billion)

18

19

Continued momentum in our business

• Long-term investment performance is strong across the enterprise

• Positive trend in long-term net flows – strong long-term net flows across all distribution channels

• Active share repurchase program – purchased 2.1 million shares for $53.1 million during the quarter

• Integration of acquisition-related funds nearly complete; no discernible merger-related outflows year to date; combined business demonstrating solid momentum

• Reflecting the firm’s continued financial strength, first-quarter dividend increasing 11.4% to 12.25 cents per share

First quarter overview

20

Discussion topics



Financial results

Questions

Appendix

21

Discussion topics



Financial results

Questions

Appendix

Investment performanceBy investment objective*

16%

64%

96%

1-yr 3-yr 5-yr

3%12%

3%7%

57%60%

1-yr 3-yr 5-yr

48%55%

60%

1-yr 3-yr 5-yr

38%

8%

23%

48%

25%

35%

1-yr 3-yr 5-yr

10%3%

53%

91% 94%

1-yr 3-yr 5-yr

61%

87%

75%

1-yr 3-yr 5-yr

46%

65%

22%

31%

1%

1-yr 3-yr 5-yr

63%

95%96%

1-yr 3-yr 5-yr

100%

% of AUMabovebenchmark

1st quartile

2nd quartile

U.S. Core U.S. Growth U.S. Value Sector

U.K.

100% 100% 100%

Canadian Asian European

Equities

94% 95%99%

1-yr 3-yr 5-yr

90%

2%1%

89%

1%

1-yr 3-yr 5-yr

77%

44%

78%

1-yr 3-yr 5-yr

41%25%

32%

25%

3%

41%

1-yr 3-yr 5-yr

100%

76%

95%

50%

1-yr 3-yr 5-yr

10%

61%

36%27%

22%

43%

1-yr 3-yr 5-yr

100% 100%

62%

84% 83%

1-yr 3-yr 5-yr

8%1%

45%36%

32%

31%

1-yr 3-yr 5-yr

100%

* AUM measured in the one, three, and five year quartile rankings represents 60%, 60%, and 58% of total Invesco AUM, respectively, and AUM measured versus benchmark on a one, three, and five year basis represents 73%, 71, and 69% of total Invesco AUM, respectively, as of 3/31/11. Peer group rankings are sourced from a widely-used third party ranking agency in each fund’s market (Lipper, Morningstar, Russell, Mercer, eVestment Alliance, SITCA) and asset-weighted in USD. Rankings are as of prior quarter-end for most institutional products and prior month-end for Australian retail funds due to their late release by third parties. Rankings for the most representative fund in each GIPS composite are applied to all products within each GIPS composite. Excludes passive products, closed-end funds, private equity limited partnerships, non-discretionary direct real estate, unit investment trusts, CDOs, alternative and stable value products. Certain funds and products were excluded from the analysis because of limited benchmark or peer group data. Had these been available, results may have been different. These results are preliminary and subject to revision. Performance assumes the reinvestment of dividends. Past performance is not indicative of future results and may not reflect an investor’s experience. 22

Investment performanceBy investment objective*

100%

% of AUMabovebenchmark

1st quartile

2nd quartile

GlobalGlobal ex-U.S. andEmerging markets Balanced

Money market

100% 100%

U.S. fixed income Global fixed income

Equities

100% 100% 100%

Balanced

Fixed income

33%

54%

78%

1-yr 3-yr 5-yr

13%22% 21%

15%

30%19%

1-yr 3-yr 5-yr

69%

93% 92%

1-yr 3-yr 5-yr

60%

30% 28%

3% 64% 65%

1-yr 3-yr 5-yr

43%

80% 82%

1-yr 3-yr 5-yr

10% 12%4%

24%

66%68%

1-yr 3-yr 5-yr

36%

75% 75%

1-yr 3-yr 5-yr

10% 10% 11%

86% 83% 83%

1-yr 3-yr 5-yr

53%

43% 41%

1-yr 3-yr 5-yr

57%

19%

41%

10%

19%

19%

1-yr 3-yr 5-yr

82% 83% 86%

1-yr 3-yr 5-yr

20% 17% 15%

69% 69% 72%

1-yr 3-yr 5-yr

* AUM measured in the one, three, and five year quartile rankings represents 60%, 60%, and 58% of total Invesco AUM, respectively, and AUM measured versus benchmark on a one, three, and five year basis represents 73%, 71, and 69% of total Invesco AUM, respectively, as of 3/31/11. Peer group rankings are sourced from a widely-used third party ranking agency in each fund’s market (Lipper, Morningstar, Russell, Mercer, eVestment Alliance, SITCA) and asset-weighted in USD. Rankings are as of prior quarter-end for most institutional products and prior month-end for Australian retail funds due to their late release by third parties. Rankings for the most representative fund in each GIPS composite are applied to all products within each GIPS composite. Excludes passive products, closed-end funds, private equity limited partnerships, non-discretionary direct real estate, unit investment trusts, CDOs, alternative and stable value products. Certain funds and products were excluded from the analysis because of limited benchmark or peer group data. Had these been available, results may have been different. These results are preliminary and subject to revision. Performance assumes the reinvestment of dividends. Past performance is not indicative of future results and may not reflect an investor’s experience. 23

Commitment to investment excellence

Source: Invesco. All data as of March 31, 2011. The listed centers do not all provide products or services that are available in all jurisdictions, nor are their products and services available on all platforms. All entities listed are wholly owned, indirect subsidiaries of Invesco Ltd., except Invesco Great Wall in Shenzhen, which is a joint venture between Invesco and Great Wall Securities, and the Huaneng Invesco WLR Investment Consulting Company Ltd. in Beijing, which is a joint venture between Huaneng Capital Services and WL Ross & Co. Please consult your Invesco representative for more information.

24

25

Retail61%

Institutional36%

PWM3%

Alternative13%

Fixed Income

22%

Money Market

11%

Balanced7%

Equity47%

Asia7%

Europe6%

U.K.15%

Canada4%

U.S.68%

As of March 31, 2011

$435.2$28.2$94.2$36.2$48.1

$641.9Total

U.S.CanadaU.K.Europe Asia

49.9%(3.4)%12.3%34.1%76.8%

40.2%

1-Yr Change($ billions)

$396.2$228.3$17.4

$641.9Total

RetailInstitutionalPWM

62.6%15.0%11.5%

40.2%


$303.0$44.7$71.0

$139.7$83.5

Total

Equity BalancedMoney MarketFixed IncomeAlternative

52.6% 9.8%

(2.2)%75.9%25.6%

40.2%


$641.9

We are diversified as a firmDelivering a diverse set of solutions to meet client needs

By client domicile By channel By asset class

26

Non-GAAP operating results – quarterly

($ millions) 1Q-11 4Q-10 % Change* 3Q-10 2Q-10 1Q-10 4Q-09 3Q-09 2Q-09

Investment Management Fees 816 799 2.1% 749 653 618 628 587 516

Service and Distribution Fees 199 202 (1.6)% 192 139 113 111 112 100

Performance Fees 4 19 (79.7)% 3 4 1 7 4 8

Other 33 35 (5.5)% 33 16 11 18 20 15

Third-party distribution, service and advisory expense (300) (293) 2.3% (269) (223) (198) (199) (187) (169)

Total Operating Revenues 752 762 (1.3)% 707 589 544 566 537 470

Employee Compensation 300 305 (1.8)% 298 260 234 245 236 226

Marketing 54 52 3.7% 45 36 28 31 28 24

Property, Office and Technology 65 66 (2.6)% 64 56 54 56 64 49

General and Administrative 62 58 5.8% 54 48 45 47 37 45

Adjusted Operating Expenses 480 482 (0.4)% 461 400 361 378 365 344

Adjusted Operating Income 272 280 (2.9)% 246 189 183 188 172 127

Equity in Earnings of Unconsolidated Affiliates 2 7 (68.5)% 5 4 1 2 (1) (1)

Interest and Dividend Income 3 3 8.0% 2 2 2 2 2 1

Interest Expense (16) (16) 1.3% (16) (14) (12) (15) (17) (17)

Other Gains and Losses, net 4 6 (33.9)% 4 (4) (5) - 2 10

Adjusted Income Before Income Taxes, Including Gains and Losses Attributable to NoncontrollingInterests

265 280 (5.4)% 241 178 169 177 158 120

Effective Tax Rate** 27.6% 26.0% N/A 23.1% 29.3% 28.7% 26.2% 25.6% 27.1%

Adjusted Net Income 192 209 (8.4)% 185 125 120 131 118 87

Adjusted EPS $0.41 $0.44 (6.8)% $0.39 $0.27 $0.27 $0.30 $0.27 $0.21

* % change based on unrounded figures** Effective tax rate = Adjusted Tax Expense / (Adjusted income before taxes, including gains and losses attributable to noncontrolling interests +

(gains)/losses attributable to non-controlling interests in consolidated entities, net)See Reconciliation of US GAAP results to non-GAAP results in this appendix

27

US GAAP operating results – quarterly

($ millions) 1Q-11 4Q-10 % Change* 3Q-10 2Q-10 1Q-10 4Q-09 3Q-09 2Q-09

Investment Management Fees 792 774 2.4% 726 628 594 612 570 502

Service and Distribution Fees 199 202 (1.6)% 192 139 113 111 112 100

Performance Fees 4 19 (79.7)% 3 4 1 7 4 8

Other 33 34 (4.7)% 33 16 12 18 19 15

Total Operating Revenues 1,027 1,029 (0.1)% 953 787 719 748 706 625

Employee Compensation 306 313 (2.2)% 304 261 238 247 239 229

Third-Party Distribution, Service and Advisory 297 290 2.4% 267 221 196 195 184 166

Marketing 53 51 3.7% 45 35 28 30 28 24

Property, Office and Technology 64 66 (2.4)% 64 56 54 55 63 49

General and Administrative 73 84 (12.0)% 65 64 50 50 40 47

Transaction & Integration 8 27 (70.4)% 27 79 17 10 1 -

Total Operating Expenses 801 830 (3.4)% 770 716 582 587 554 515

Operating Income 226 199 13.6% 183 71 137 161 152 110

Equity in Earnings of Unconsolidated Affiliates 7 13 (49.6)% 11 10 6 9 8 8

Interest and Dividend Income 2 4 (41.7)% 3 2 2 2 2 1

Interest Income of Consolidated Investment Products 74 65 14.2% 70 53 53 - - -

Gains and (Losses) of Consolidated Investment Products, net

(86) (28) 205.4% (148) 187 103 26 2 (48)

Interest Expense (16) (16) 1.3% (16) (14) (12) (15) (17) (17)

Interest Expense of Consolidated Investment Products

(40) (37) 9.3% (36) (26) (21) - - -

Other Gains and Losses, net 8 12 (36.3)% 15 (9) (2) (0) 2 10

Income Before Income Taxes, Including Gains and Losses Attributable to Noncontrolling Interests

175 212 (17.7)% 82 275 265 182 148 64

Effective Tax Rate** 29.9% 24.1% N/A 26.1% 47.4% 34.5% 30.3% 29.3% 32.2%

(Gains)/Losses Attributable to NoncontrollingInterests in Consolidated Entities, net

78 19 N/A 127 (197) (119) (23) 1 48

Net Income Attributable to Common Shareholders 177 175 1.3% 155 41 95 111 105 76

EPS Diluted $0.38 $0.37 2.7% $0.32 $0.09 $0.21 $0.25 $0.24 $0.18

* % change based on unrounded figures** Effective tax rate = Tax Expense / (Income before income taxes, including gains and losses attributable to noncontrolling interests + (gains)/losses

attributable to noncontrolling interests in consolidated entities, net)

28

Total assets under management - quarterly($ billions) 1Q-11 4Q-10 % Change 3Q-10 2Q-10 1Q-10

Beginning Assets $616.5 $604.52.0% $557.7 $457.7 $459.5

Long-Term Inflows 48.0 40.4 18.8% 36.8 45.3 32.1

Long-Term Outflows (41.4) (57.4) (27.9)% (31.9) (31.4) (28.5)

Long-Term Net flows 6.6 (17.0) N/A 4.9 13.9 3.6

Net flows in Inst. Money Market Funds 2.6 (1.6) N/A (2.4) (0.9) (10.6)

Market Gains and Losses/Reinvestment 12.9 24.2 (46.7)% 34.4 (24.2) 9.7

Net Acquisitions/(Dispositions) - 5.0 N/A 1.7 114.6 -

Foreign Currency Translation 3.3 1.4 135.7% 8.2 (3.4) (4.5)

Ending Assets $641.9 $616.5 4.1% $604.5 $557.7 $457.7

Ending Long-Term AUM 575.0 552.3 4.1% 538.7 489.6 388.7

Average Long-Term AUM 564.4 550.9 2.5% 516.4 413.4 374.3

Average Institutional Money Market AUM 65.8 65.1 1.1% 66.9 67.1 75.3

Average AUM $630.2 $616.0 2.3% $583.3 $480.5 $449.6

Gross Revenue Yield (annualized)* 65.6bps 67.2bps (1.6)pts 65.7bps 66.0bps 64.5bps

Gross Revenue Yield Less Performance Fees (annualized)* 65.3bps 66.0bps (0.7)pts 65.6bps 65.7bps 64.4bps

Net Revenue Yield (annualized)** 47.7bps 49.5bps (1.8)pts 48.5bps 49.0bps 48.4bps

Net Revenue Yield Less Performance Fees

(annualized)**

47.5bps 48.2bps (0.7)pts 48.3bps 48.7bps 48.3bps

* Gross revenue yield on AUM is equal to total operating revenues divided by average AUM, excluding JV AUM. Average AUM for 1Q11, for our joint ventures in China were $3.5bn (4Q10:$3.6bn;3Q10:$3.4bn ;2Q10: $3.1bn ;1Q10: $3.8bn)

**Net Revenue Yield on AUM is equal to net revenues divided by average AUM including JV AUM. Average AUM for 1Q11, for our JV in China were $3.5bn (4Q10:$3.6bn;3Q10:$3.4bn ;2Q10:$3.1bn;1Q10: $3.8bn )

The beginning balances were adjusted to reflect certain asset reclassifications

2929

Total assets under management – by asset class

December 31, 2010 $616.5 $294.0 $132.0 $43.5 $68.3 $78.7

Long-Term Inflows 48.0 25.0 13.3 2.1 0.4 7.2

Long-Term Outflows (41.4) (27.8) (6.7) (2.4) (0.4) (4.1)

Long-Term Net flows 6.6 (2.8) 6.6 (0.3) - 3.1

Net flows in Inst. Money Market Fund

2.6 - - - 2.6 -

Market Gains and Losses/Reinvestment

12.9 9.7 0.7 0.9 0.1 1.5

Net Acquisitions/(Dispositions) - - - - - -

Foreign Currency Translation 3.3 2.1 0.4 0.6 - 0.2

March 31, 2011 641.9 303.0 139.7 44.7 71.0 83.5

* The beginning balances were adjusted to reflect certain asset reclassifications

($ billions)Total Equity

Fixed

Income Balanced

Money

Market Alternative

September 30, 2010 $604.5 $294.4 $130.8 $41.3 $69.9 $68.1



Long-Term Net flows (17.0) (24.2) 4.4 0.6 - 2.2


(1.6) - - - (1.6) -


24.2 23.1 (3.3) 1.4 - 3.0

Net Acquisitions/(Dispositions) 5.0 (0.4) - - - 5.4

Foreign Currency Translation 1.4 1.1 0.1 0.2 - -

3030

Total assets under management – by asset class


Fixed

Income Balanced

Money

Market Alternative

March 31, 2010 $457.7 $198.5 $79.4 $40.7 $72.6 $66.5



Long-Term Net flows 13.9 14.5 0.7 (0.1) 0.2 (1.4)

Net flows in Inst. Money Market Funds

(0.9) - - - (0.9) -


(24.2) (21.6) 1.7 (1.9) - (2.4)

Net Acquisitions 114.6 73.7 37.8 0.3 0.6 2.2

Foreign Currency Translation (3.4) (2.0) (0.3) (0.7) - (0.4)

June 30, 2010 $557.7 $263.1 $119.3 $38.3 $72.5 $64.5



Long-Term Net flows 4.9 (1.1) 6.1 0.1 (0.3) 0.1


(2.4) - - - (2.4) -


34.4 25.3 4.3 2.0 - 2.8

Net Acquisitions 1.7 1.7 - - - -

Foreign Currency Translation 8.2 5.4 1.1 0.9 0.1 0.7

September 30, 2010 $604.5 $294.4 $130.8 $41.3 $69.9 $68.1


3131

Total assets under management – by channel

($ billions) Total Retail Institutional PWM

September 30, 2010 $604.5 $359.3 $229.0 $16.2

Long-Term Inflows 40.4 29.6 10.0 0.8

Long-Term Outflows (57.4) (30.0) (26.7) (0.7)

Long-Term Net flows (17.0) (0.4) (16.7) 0.1

Net flows in Inst. Money Market Funds (1.6) - (1.6) -

Market Gains and Losses/Reinvestment 24.2 18.7 4.8 0.7

Net Acquisitions/(Dispositions) 5.0 (0.1) 5.1 -

Foreign Currency Translation 1.4 0.6 0.8 -

December 31, 2010 $616.5 $378.1 $221.4 $17.0



Long-Term Net flows 6.6 4.1 2.4 0.1

Net flows in Inst. Money Market Funds 2.6 - 2.6 -


Net Acquisitions/(Dispositions) - - - -


March 31, 2011 $641.9 $396.2 $228.3 $17.4


3232

Total assets under management – by channel


March 31, 2010 $457.7 $243.6 $198.5 $15.6



Long-Term Net flows 13.9 (2.4) 15.7 0.6


Market Gains and Losses/Reinvestment (24.2) (18.6) (4.8) (0.8)

Net Acquisitions/(Dispositions) 114.6 105.1 9.5 -

Foreign Currency Translation (3.4) (2.4) (1.0)

June 30, 2010 $557.7 $325.3 $217.0 $15.4



Long-Term Net flows 4.9 0.9 3.9 0.1



Net Acquisitions/(Dispositions) 1.7 (1.0) 2.7 -


September 30, 2010 $604.5 $359.3 $229.0 $16.2


3333

Total assets under management – by client domicile

($ billions) Total U.S. Canada U.K.Continental

Europe Asia

September 30, 2010 $604.5 $400.0 $26.7 $89.8 $33.6 $54.4



Long-Term Net flows (17.0) 1.4 (1.2) - 0.9 (18.1)

Net flows in Inst. Money Market Funds (1.6) (1.3) - (0.1) (0.1) (0.1)

Market Gains and Losses/Reinvestment 24.2 15.7 1.5 2.9 1.2 2.9

Net Acquisition/(Dispositions) 5.0 (0.4) - - - 5.4

Foreign Currency Translation 1.4 - 0.9 (0.5) (0.3) 1.3

December 31, 2010 $616.5 $415.4 $27.9 $92.1 $35.3 $45.8




Long-Term Net flows 6.6 6.9 (1.0) (0.8) (0.6) 2.1

Net flows in Inst. Money Market Funds 2.6 2.7 0.1 (0.3) - 0.1


Net Acquisition/(Dispositions) - - - - - -

Foreign Currency Translation 3.3 - 0.6 2.2 0.7 (0.2)

March 31, 2011 $641.9 $435.2 $28.2 $94.2 $36.2 $48.1

3434


Europe Asia

March 31, 2010 $457.7 $290.4 $29.2 $83.9 $27.0 $27.2



Long-Term Net flows 13.9 (2.4) (1.2) 1.0 0.1 16.4

Net flows in Inst. Money Market Funds (0.9) (1.7) - (0.3) 2.0 (0.9)

Market Gains and Losses/Reinvestment (24.2) (12.9) (1.4) (5.6) (1.4) (2.9)

Net Acquisitions/(Dispositions) 114.6 103.7 0.6 1.8 2.9 5.6

Foreign Currency Translation (3.4) - (1.2) (1.2) (1.0) -

June 30, 2010 $557.7 $377.1 $26.0 $79.6 $29.6 $45.4




Long-Term Net flows 4.9 3.9 (1.2) 0.9 0.7 0.6

Net flows in Inst. Money Market Funds (2.4) (1.9) - (0.5) (0.1) 0.1


Net Acquisitions/(Dispositions) 1.7 (0.9) (0.5) - - 3.1

Foreign Currency Translation 8.2 - 0.8 4.0 1.2 2.2

September 30, 2010 $604.5 $400.0 $26.7 $89.8 $33.6 $54.4

Total assets under management – by client domicile

3535

Assets under management – ETF, UIT and passive – by asset class


Fixed

Income Balanced

Money

Market Alternative

September 30, 2010 $89.9 $57.5 $17.1 $0.0 $0.0 $15.3

Long-Term Inflows 15.8 9.3 4.3 - - 2.2

Long-Term Outflows (30.4) (28.4) (0.6) - - (1.4)

Long-Term Net flows (14.6) (19.1) 3.7 - - 0.8


- - - - - -


4.3 3.9 (1.0) - - 1.4

Net Acquisitions/(Dispositions) 0.7 - - - - 0.7

Foreign Currency Translation 0.5 0.5 - - - -

December 31, 2010 $80.8 $42.8 $19.8 $0.0 $0.0 $18.2



Long-Term Net flows 8.1 2.4 4.0 - - 1.7


- - - - - -


2.8 2.1 (0.1) - - 0.8


Foreign Currency Translation - - - - - -

March 31, 2011 $91.7 $47.3 $23.7 $0.0 $0.0 $20.7


3636

June 30, 2010 $79.2 $48.9 $15.2 $0.0 $0.0 $15.1



Long-Term Net flows 3.6 2.9 1.5 - - (0.8)

Net flows in Inst. Money Market Funds

- - - - - -


6.0 4.8 0.4 - - 0.8


Foreign Currency Translation 1.1 0.9 - - - 0.2

September 30, 2010 $89.9 $57.5 $17.1 $0.0 $0.0 $15.3


Fixed

Income Balanced

Money

Market Alternative

March 31, 2010 $55.7 $34.3 $4.5 $0.0 $0.0 $16.9



Long-Term Net flows 14.7 14.7 0.6 - - (0.6)


- - - - - -


(4.8) (4.6) 0.9 - - (1.1)

Net Acquisitions/(Dispositions) 13.7 4.5 9.2 - - -

Foreign Currency Translation (0.1) - - - - (0.1)

Assets under management – ETF, UIT and passive – by asset class


3737


September 30, 2010 $89.9 $66.7 $23.2 $0.0

Long-Term Inflows 15.8 12.9 2.9 -

Long-Term Outflows (30.4) (11.8) (18.6) -

Long-Term Net flows (14.6) 1.1 (15.7) -

Net flows in Inst. Money Market Funds - - - -

Market Gains and Losses/Reinvestment 4.3 2.8 1.5 -

Net Acquisitions/(Dispositions) 0.7 - 0.7 -

Foreign Currency Translation 0.5 - 0.5 -

December 31, 2010 $80.8 $70.6 $10.2 $0.0


Long-Term Outflows (10.9) (10.7) (0.2) -

Long-Term Net flows 8.1 4.7 3.4 -


Market Gains and Losses/Reinvestment 2.8 2.9 (0.1) -


Foreign Currency Translation - - - -

March 31, 2011 $91.7 $78.2 $13.5 $0.0


Assets under management – ETF, UIT and passive – by channel

3838


March 31, 2010 $55.7 $49.6 $6.1 $0.0


Long-Term Outflows (11.9) (11.9) - -

Long-Term Net flows 14.7 (1.3) 16.0 -


Market Gains and Losses/Reinvestment (4.8) (4.6) (0.2) -

Net Acquisitions/(Dispositions) 13.7 13.7 - -

Foreign Currency Translation (0.1) - (0.1) -

June 30, 2010 $79.2 $57.4 $21.8 $0.0

Long-Term Inflows 15.2 15.2 - -

Long-Term Outflows (11.6) (11.6) - -

Long-Term Net flows 3.6 3.6 - -


Market Gains and Losses/Reinvestment 6.0 5.7 0.3 -


Foreign Currency Translation 1.1 - 1.1 -

September 30, 2010 $89.9 $66.7 $23.2 $0.0


Assets under management – ETF, UIT and passive – by channel

3939


Europe Asia

September 30, 2010 89.9 70.5 $0.0 $0.0 $1.1 $18.3

Long-Term Inflows 15.8 15.7 - - 0.1 -

Long-Term Outflows (30.4) (11.7) - - (0.1) (18.6)

Long-Term Net flows (14.6) 4.0 - - - (18.6)

Net flows in Inst. Money Market Funds - - - - - -

Market Gains and Losses/Reinvestment 4.3 2.8 - - 0.1 1.4

Net Acquisitions/(Dispositions) 0.7 - - - - 0.7

Foreign Currency Translation 0.5 - - - - 0.5

December 31, 2010 $80.8 $77.3 $0.0 $0.0 $1.2 $2.3


Long-Term Inflows 19.0 18.8 - - 0.2 -

Long-Term Outflows (10.9) (10.8) - - (0.1) -

Long-Term Net flows 8.1 8.0 - - 0.1 -


Market Gains and Losses/Reinvestment 2.8 2.7 - - 0.1 -


Foreign Currency Translation - - - - - -

March 31, 2011 $91.7 $88.0 $0.0 $0.0 $1.4 $2.3

Assets under management – ETF, UIT and passive – by client domicile

4040


Europe Asia

March 31, 2010 $55.7 $52.9 $0.0 $0.0 $1.1 $1.7

Long-Term Inflows 26.6 10.7 - - 0.1 15.8


Long-Term Net flows 14.7 (1.1) - - - 15.8


Market Gains and Losses/Reinvestment (4.8) (4.0) - - (0.1) (0.7)

Net Acquisition/(Dispositions) 13.7 13.7 - - - -

Foreign Currency Translation (0.1) - - - - (0.1)

June 30, 2010 $79.2 $61.5 $0.0 $0.0 $1.0 $16.7


Long-Term Inflows 15.2 15.2 - - - -


Long-Term Net flows 3.6 3.7 - - (0.1) -


Market Gains and Losses/Reinvestment 6.0 5.3 - - 0.2 0.5


Foreign Currency Translation 1.1 - - - - 1.1

September 30, 2010 89.9 70.5 $0.0 $0.0 $1.1 $18.3

Assets under management – ETF, UIT and passive – by client domicile

41

Reconciliation of US GAAP results to non-GAAP results – three months ended March 31, 2011

($ millions)

Operating Revenues

US GAAP

Basis

Proportional Consolidation

of Joint Ventures

3rd party distribution, service and

advisory expenses

Acquisition related

Market appreciation / depreciation of

deferred compensation

awards

Consolidated Investment

Products

Other Reconciling

Items

Non-GAAP basis

Investment Management Fees 792 13 - - - 11 - 816

Service and Distribution Fees 199 - - - - - - 199

Performance Fees 4 - - - - - - 4

Other 33 - - - - - - 33

Third-Party Distribution, Service and Advisory - (3) (297) - - - - (300)

Total Operating Revenues reconciled to net revenues

Operating Expenses

1,027 10 (297) - - 11 - 752

Employee Compensation 306 3 - (5) (4) - - 300

Third-Party Distribution, Service and Advisory 297 - (297) - - - - -

Marketing 53 1 - - - - - 54

Property, Office and Technology 64 1 - - - - - 65

General and Administrative 73 1 - (9) - (3) - 62

Transaction & Integration 8 - - (8) - - - -

Total Operating Expenses 801 5 (297) (22) (4) (3) - 480

Operating Income reconciled to adjusted cash operating income

226 5 - 22 4 15 - 272

Equity in Earnings of Unconsolidated Affiliates 7 (6) - - - 1 - 2

Interest and Dividend Income 2 - - - (1) 1 - 3

Interest Income of Consolidated Investment Products 74 - - - - (74) - -


(86) - - - - 86 - -

Interest Expense (16) - - - - - - (16)


(40) - - - - 40 - -

Other Gains and Losses, net 8 - - - (4) - - 4


175 - - 22 (1) 69 - 265

Income Tax Provision (76) - - 2 - - - (73)


78 - - - - (78) - -

Net Income Attributable to Common Shareholders reconciled to adjusted cash net income

177 - - 24 (1) (9) - 192

EPS Diluted

Diluted Shares Outstanding

Operating margin

$0.38

472.1

22.0%

Adjusted EPS


Adjusted Operating Margin

$0.41

472.1

36.2%

42

Reconciliation of US GAAP results to non-GAAP results – three months ended December 31, 2010

($ millions)

Operating Revenues

US GAAP

Basis


of Joint Ventures


advisory expenses

Acquisition related



awards


Products

Other Reconciling

Items

Non-GAAP basis




Other 34 1 - - - - - 35



Operating Expenses

1,029 11 (290) - - 12 - 762



Marketing 51 1 - - - - - 52


General and Administrative 84 1 - (9) - (2) (15) 58


Total Operating Expenses 830 5 (290) (41) (6) (2) (15) 482


199 6 - 41 6 14 15 280

Equity in Earnings of Unconsolidated Affiliates 13 (6) - - - - - 7

Interest and Dividend Income 4 - - - (1) - - 3



(28) - - - - 28 - -



(37) - - - - 37 - -



212 - - 41 (3) 14 15 280

Income Tax Provision (56) - - (14) 1 - (4) (74)


19 - - - - (15) - 3


175 - - 26 (2) (1) 11 209

EPS Diluted


Operating margin

$0.37

473.1

19.3%

Adjusted EPS



$0.44

473.1

36.8%

43

Reconciliation of US GAAP results to non-GAAP results – three months ended September 30, 2010

($ millions)

Operating Revenues

US GAAP

Basis


of Joint Ventures


advisory expenses

Acquisition related



awards


Products

Other Reconciling

Items

Non-GAAP basis




Other 33 - - - - - - 33



Operating Expenses

953 10 (267) - - 10 - 707



Marketing 45 - - - - - - 45


General and Administrative 65 1 - (9) - (2) - 54


Total Operating Expenses 770 5 (267) (41) (4) (2) - 461


183 6 - 41 4 12 - 246

Equity in Earnings of Unconsolidated Affiliates 11 (6) - - - - - 5

Interest and Dividend Income 3 - - - (1) - - 2



(148) - - - - 148 - -



(36) - - - - 36 - -



82 - - 41 (8) 126 - 241

Income Tax Provision (55) - - (3) 2 - - (56)


127 - - - - (128) - (0)


155 - - 38 (6) (2) - 185

EPS Diluted


Operating margin

$0.32

479.1

19.2%

Adjusted EPS



$0.39

479.1

34.8%

44

Reconciliation of US GAAP results to non-GAAP results – three months ended June 30, 2010

($ millions)

Operating Revenues

US GAAP

Basis


of Joint Ventures


advisory expenses

Acquisition related



awards


Products

Other Reconciling

Items

Non-GAAP basis




Other 16 0 - - - - - 16



Operating Expenses

787 10 (221) - - 12 - 589

Employee Compensation 261 3 - (5) 2 - - 260


Marketing 35 0 - - - - - 36


General and Administrative 64 1 - (5) - (3) (9) 48


Total Operating Expenses 716 4 (221) (90) 2 (3) (9) 400


71 6 - 90 (2) 15 9 189

Equity in Earnings of Unconsolidated Affiliates 10 (6) - - - 0 - 4

Interest Income 2 0 - - - - - 2



187 - - - - (187) - -



(26) - - - - 26 - -

Other Gains and Losses, net (9) - - - 6 - - (4)


275 - - 90 4 (200) 9 178

Income Tax Provision (37) - - (11) (1) - (3) (52)

(Gains)/Losses Attributable to Noncontrolling Interests in Consolidated Entities, net

(197) - - - - 197 - (0)


41 - - 79 3 (2) 6 125

EPS Diluted


Operating margin

$0.09

457.8

9.1%

Adjusted EPS



$0.27

457.8

32.0%

45

Reconciliation of US GAAP results to non-GAAP results – three months ended March 31, 2010

($ millions)

Operating Revenues

US GAAP

Basis

Proportional share of JV


advisory expenses

Acquisition

related


deferred compensation awards


Products

Non-GAAP basis

Investment Management Fees 594 14 - - - 11 618

Service and Distribution Fees 113 - - - - - 113

Performance Fees 1 - - - - - 1

Other 12 (0) - - - (0) 11

Third-Party Distribution, Service and Advisory - (3) (196) - - - (198)


Operating Expenses

719 11 (196) - - 10 544

Employee Compensation 238 3 - (5) (2) - 234

Third-Party Distribution, Service and Advisory 196 - (196) - - - -

Marketing 28 0 - - - - 28

Property, Office and Technology 54 1 - - - - 54

General and Administrative 50 1 - (3) - (3) 45

Transaction & Integration 17 - - (17) - - -

Total Operating Expenses 582 5 (196) (25) (2) (3) 361


137 5 - 25 2 14 183

Equity in Earnings of Unconsolidated Affiliates 6 (6) - - - 0 1

Interest Income 2 0 - - - - 2

Interest Income of Consolidated Investment Products 53 - - - - (53) -


103 - - - - (103) -

Interest Expense (12) - - - - - (12)


(21) - - - - 21 -

Other Gains and Losses, net (2) - - - (2) - (5)


265 - - 25 (1) (121) 168

Income Tax Provision (50) - - 2 0 - (48)


(119) - - - - 119 (0)


95 - - 27 (0) (2) 120

EPS Diluted


Operating margin

$0.21

442.4

19.0%

Adjusted EPS

Diluted shares outstanding

Adjusted operating margin

$0.27

442.4

33.6%

46

Reconciliation of US GAAP results to non-GAAP results – three months ended December 31, 2009

($ millions)

Operating Revenues

US GAAP

Basis


of Joint Ventures

3rd party distribution, service and advisory

expenses

Acquisition related

Consolidated Investment Products

Non-GAAP basis

Investment Management Fees 612 15 - - 2 628

Service and Distribution Fees 111 - - - - 111

Performance Fees 7 - - - - 7

Other 18 - - - - 18

Third-Party Distribution, Service and Advisory - (3) (195) - - (199)


Operating Expenses

748 12 (195) - 2 566

Employee Compensation 247 3 - (5) - 245

Third-Party Distribution, Service and Advisory 195 - (195) - - -

Marketing 30 1 - - - 31

Property, Office and Technology 55 1 - - - 56

General and Administrative 50 1 - (3) (1) 47

Transaction & Integration 10 - - (10) - -

Total Operating Expenses 587 5 (195) (18) (1) 378


161 7 - 18 3 188

Equity in Earnings of Unconsolidated Affiliates 9 (7) - - - 2

Interest and Dividend Income 2 - - - - 2


26 - - - (26) -

Interest Expense (15) - - - - (15)

Other Gains and Losses, net - - - - - -


182 - - 18 (23) 177

Income Tax Provision (48) - - 2 - (46)


(23) - - - 23 -


111 - - 20 - 131

EPS Diluted


Operating margin

$0.25

440.1

21.5%

Adjusted EPS



$0.30

440.1

33.2%

47

Reconciliation of US GAAP results to non-GAAP results – three months ended September 30, 2009

($ millions)

Operating Revenues

US GAAP

Basis

Proportional Consolidation of Joint Ventures


expenses

Acquisition related


Non-GAAP basis




Other 19 1 - - - 20



Operating Expenses

706 13 (184) - 2 537



Marketing 28 - - - - 28


General and Administrative 40 1 - (3) (1) 37

Transaction & Integration 1 - - (1) - -

Total Operating Expenses 554 4 (184) (9) (1) 365


152 8 - 9 3 172

Equity in Earnings of Unconsolidated Affiliates 8 (9) - - - (1)


Gains /(Losses) of Consolidated Investment Products, net 2 - - - (2) -


Other Gains and Losses, net 2 - - - - 2


148 - - 9 1 158



1 - - - (1) -


105 - - 13 118

EPS Diluted


Operating margin

$0.24

437.7

21.5%

Adjusted EPS



$0.27

437.7

32.1%

48

Reconciliation of US GAAP results to non-GAAP results – three months ended June 30, 2009

($ millions)

Operating Revenues

US GAAP

Basis

Proportional Consolidation of Joint Ventures


expenses

Acquisition related


Non-GAAP basis




Other 15 - - - (1) 15



Operating Expenses

625 11 (166) - - 470



Marketing 24 - - - - 24


General and Administrative 47 1 - (3) - 45

Transaction & Integration - - - - - -

Total Operating Expenses 515 4 (166) (8) - 344


110 8 - 8 - 127

Equity in Earnings of Unconsolidated Affiliates 8 (8) - - (1) (1)


Gains /(Losses) of Consolidated Investment Products, net (48) - - - 48 -


Other Gains and Losses, net 10 - - - - 10


64 - - 8 48 120



48 - - - (48) -


76 - - 12 - 87

EPS Diluted


Operating margin

$0.18

416.8

17.7%

Adjusted EPS



$0.21

416.8

26.9%

Documents

Invesco first-quarter 2011 resultss21.q4cdn.com/954047929/.../earnings_releases/2011/... · 4 Summary of first-quarter 2011 results Assets under management • March 31, 2011 AUM