Invesco Ltd. (NYSE:IVZ) Q4 2019 Earnings Conference Call - Final Transcript

Jan 29, 2020 • 09:00 am ET


Invesco Ltd. (NYSE:IVZ) Q4 2019 Earnings Conference Call - Final Transcript


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Unidentified Speaker

Good morning and thank you all for joining us. As a reminder, this conference call and the related presentation may include forward-looking statements, which reflect management's expectation about future events and overall operating plans and performance. These forward-looking statements are made as of today and are not guaranteed. They involve risks, uncertainties and assumptions, and there can be no assurance that actual results will not differ materially from our expectations.

For a discussion of these risks and uncertainties, please see the risks described in our most recent Form 10-K and subsequent filings with the SEC. Invesco makes no obligation to update any forward-looking statements. We may also discuss non-GAAP financial measures during today's call. Reconciliations of these non-GAAP financial measures may be found at the end of our earnings presentation.


Welcome to Invesco's Fourth Quarter Results Conference Call. All participants will be on a 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.

Now, I would like to turn the call over to your speakers for today, Marty Flanagan, President and CEO of Invesco; Loren Starr, Chief Financial Officer; and Greg McGreevey, Senior Managing Director, Investments.

Mr. Flanagan, you may begin.

Martin L. Flanagan

Thank you very much, and thanks everybody for joining. This is Marty Flanagan, along with Loren Starr, our CFO, and Andrew Schlossberg, Head of the Americas. And if you're so inclined, the presentation is on the website if you want to follow along. That said, we're going to follow the format that we did last quarter where much shorter prepared remarks so we can get to Q&A. Loren will get a brief overview of the business results before we get into the questions though.

And as we've discussed on previous calls, we view this combination with Oppenheimer's multi growth -- multi-year growth story that deepened our relationship with Invesco clients, expanded the capabilities offered globally, scaled the business for both the benefit of our clients and shareholders, and we're already seeing that. This expansion meaningfully enhances our ability to grow our business, achieve very strong operating results, and compete in the ever increasing dynamic market environments.

Importantly, this is a long-term growth story. That said, we are seeing real and meaningful signs of the power of the combined firm. We ended the year with just over $1.2 trillion in assets under management. That's a 38% increase year-over-year. That's a record high for the firm. We also have higher assets under management across all channels and all regions as we ended the year.

Long-term outflows for the year were $34 billion. That's a 11% improvement from the prior year. We hit record levels of revenue and record levels of operating profits for the year ended 2019. We also achieved significant expense savings delivering ahead of schedule and at $551 million is more than $25 million ahead of the synergy target that we talked about at the time of the combination. And we'll continue to look for