Invesco Ltd. (NYSE:IVZ) Q4 2015 Earnings Conference Call - Final Transcript

Jan 28, 2016 • 09:00 am ET


Invesco Ltd. (NYSE:IVZ) Q4 2015 Earnings Conference Call - Final Transcript


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


Welcome to Invesco's Fourth Quarter Results Conference Call. All participants will be on listen-only mode until the question-and-answer session. [Operator Instructions] Today's conference is being recorded. If you have any objections, you may disconnect at this time.

I'd like to turn the call over to your speakers for today, Mr. Martin L. Flanagan, President and CEO of Invesco; and Mr. Loren Starr, Chief Financial Officer. Mr. Flanagan, you may begin.

Martin Flanagan

Thank you very much, and thank you everybody for joining Loren and myself, and I'll briefly review the 2015 highlights before getting into a review of the business results for the fourth quarter, and then, Loren, will go into the more depth of the financial results and then of course we will open up to Q&A as we always do.

So let me start by providing a brief overview of the operating results for the full-year, and if you're so inclined, I'm on page 3 of the presentation. Long-term investment performance remained very strong in 2015, 79% and 85% of actively managed assets were ahead of peers over three-year and five-years respectively at the end of the fourth quarter. Strong investment performance, combined with a comprehensive range of strategies and solutions we offer, helped clients achieve their desired investment objectives contributed to long-term net inflows of $16.2 billion for the year.

Our efforts to deliver for clients while taking a disciplined approach to managing our business resulted in an operating margin of 41% for the full-year, off just slightly from the very strong prior year. The annual dividend totaled $1.08 per share which represents an 8% increase over the prior year. We also returned more than $1 billion to shareholders during 2015 through dividends and stock buybacks.

Assets under management were