Invesco first quarter 2014 results

Invesco first quarter 2014 results Martin L. Flanagan President and Chief Executive Officer Loren M. Starr Chief Financial Officer May 1, 2014

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 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 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. 1

Discussion topics First quarter overview Investment performance and flows Update on EMEA Financial Results Questions Appendix 2

First quarter overview Strong investment performance contributed to solid operating results Maintained strong, long-term investment performance 81% of actively managed assets ahead of peers on a 3-year basis Net long-term inflows of $6.5 billion driven by strong investment performance and broad demand across a diverse range of capabilities Adjusted operating income 1 up 18.5% over same quarter a year ago Adjusted operating margin 1 improved to 40.9% from 38.9% in same quarter a year ago an increase of 2 percentage points Quarterly dividend raised to 25 cents, up 11.1% from quarterly dividend paid last year 3 1. Non-GAAP financial measures - See Appendix to this presentation for a reconciliation of adjusted operating income (and by calculation adjusted operating margin), to the most directly comparable U.S. GAAP financial measure. Past performance is not a guarantee of future results.

Summary of first quarter 2014 results Assets under management March 31,2014 AUM of $787.3 billion versus $778.7 billion at December 31, 2013 Average AUM was $779.6 billion versus $761.7 billion for the fourth quarter Flows Total net outflows of $0.9 billion Long-term net inflows of $6.5 billion Overall operating results* Adjusted operating income was $363 million versus $347 million in the fourth quarter Adjusted operating margin was 40.9% in the quarter versus 40.5% in the fourth quarter Adjusted diluted EPS for the quarter was $0.60 versus $0.58 in the prior quarter Capital management Quarterly dividend of 25 cents per share, an increase of 11% versus the prior year Repurchased $119.6 million in common stock (3.6 million shares) * Non-GAAP financial measures - See 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 diluted EPS) to the most directly comparable U.S. GAAP financial measure. 4

Discussion topics First quarter overview Investment performance and flows Update on EMEA Financial results Questions Appendix 5

Investment performance overview Aggregate performance analysis asset weighted Percent of actively managed assets in top half of peer group* 1-Year 3-Year 5-Year 73% 81% 68% 27% 19% 32% Assets top half of peer group Assets bottom half of peer group *Excludes passive products, closed-end funds, private equity limited partnerships, non-discretionary funds, unit investment trusts, fund of funds with component funds managed by Invesco, stable value building block funds 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. Data as of 3/31/2014. Includes AUM of $471.5 billion (60% of total IVZ) for 1 year, $469.5 billion (60% of total IVZ) for three year, and $445.1 billion (57% 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, IMA, Russell, Mercer, evestment Alliance, SITCA, Value Research) 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. Performance assumes the reinvestment of dividends. Past performance is not indicative of future results and may not reflect an investor s experience. 6

Quarterly long-term flows Continued strong gross sales across our global business Quarterly long-term flows ($ billions) Total Active Passive 47.6 44.4 41.8 45.8 50.2 34.1 32.6 33.1 37.2 41.6 13.5 11.8 29.4 34.0 34.4 8.5 2.7 14.3 1.4 5.0 1.0 6.5 23.8 25.2 27.7 3.3 1.2 7.9 0.1 4.8 0.3 3.2 5.6 0.3 8.8 5.2 6.7 1.5 6.4 1.3 8.7 8.6 8.6 3.3 0.7 0.2-3.0-3.3-32.4-25.5-31.7-33.3-36.8-43.0-44.8-43.7-21.9-26.5-27.1-26.2-32.5-28.3-36.9-38.4-5.3-3.6-5.2-7.1-10.5-8.5-7.9-5.3 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 Gross sales Gross redemptions Net long-term flows 7

Quarterly long-term flows Continued strong gross sales in the retail channel Quarterly long-term flows ($ billions) Retail (a) Institutional (b) 36.2 37.7 35.5 35.8 39.6 24.3 26.0 26.9 5.7 2.1 10.3 4.9 6.5 7.6 5.1 8.0 2.8 7.5 0.6 11.4 4.0 6.7 6.3 10.0 1.3 10.6-0.3-0.3-20.3-24.6-24.8-25.9-29.0-32.0-32.8-36.1 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14-1.5-1.1-2.7-3.5-5.2-7.8-6.9-7.4-7.8-8.7-10.2-11.7 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 Gross sales Gross redemptions Net long-term flows 8 (a) Retail quarterly flows include retail products in the U.S., Canada, U.K., Continental Europe, Asia and our offshore product line. (b) Institutional quarterly flows include our institutional business in the U.S., U.K., Continental Europe and Asia and excludes institutional money market.

US Retail gross sales remained strong $19.2 billion for the quarter up 4% versus the prior quarter Gross and net sales Percentage above the bars is change in gross sales from prior quarter ($ billions) 16.4 3.5 (11%) 14.6 0.7 +17% 17.1 5.9 (6%) 16.1 0.6 +37% (1%) (1%) 22.0 21.8 21.6 6.8 1.1 2.9 Net sales 4% (15%) 18.4 19.2 2.9 (0.7) Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Annualized Redemption rate (rolling 3-month average) Invesco Industry 33% 24% 32% 25% 28% 31% 26% 30% 25% 34% 32% 33% 29% 31% 31% 27% 27% 20% Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 9 Source: Data underlying the industry redemption rates are sourced from the ICI and calculated by Invesco. Invesco US Retail excludes PowerShares QQQ and money market, and is through February 28, 2014 Industry redemption rates include proprietary, non-proprietary, direct, institutional, VA and ETF channels and reflects Q1 2014 through February 28, 2014.

Discussion topics First quarter overview Investment performance and flows Update on EMEA Financial results Questions Appendix 10

Well-positioned in EMEA A strong and growing business We are well-positioned for long-term success in EMEA. Our strong and growing business is supported by: A record of delivering strong, long-term investment performance An experienced, capable and well-tenured fund management team supported by a robust investment culture Tremendous breadth and diversity of investment capabilities Strong organic growth Highly regarded and well-recognized brand Resources of a global firm 11

Invesco Perpetual A deep and well-tenured team with strong investment performance Percent of assets in top half of peer group asset weighted First quarter, 2014 3 year 5 year Top half of peer group Bottom half of peer group 97% of AUM in the top half of peers over three years Past performance is not a guide to future returns Source: Invesco Perpetual as at 31 March 2014. Performance data includes all Invesco Perpetual branded UK domiciled ICVC Funds in their representative IMA Sectors. Performance is based in Sterling on a mid-to-mid basis, inclusive of net reinvested income and net of the annual management charge and all other fund expenses. Peer Group rankings are sourced and based upon IMA sectors. Performance data excludes funds within the IMA Specialist Fund sector as there are no peers, and also excludes two Invesco Perpetual fund of fund ICVC s to avoid double counting the assets. Any reference to a rating, a ranking or an award is not a guarantee of investment performance and is not constant over time. AUM measured in three and five year quartile rankings represents 11%, and 10% of total Invesco AUM, respectively. 12

Cross Border fund range Well positioned for success in the $1.6T cross-border market Percent of assets in top half of peer group asset weighted First quarter, 2014 3 year 5 year Top half of peer group Bottom half of peer group 91% of AUM in the top half of peers over three years Past performance is not a guide to future returns Source: Morningstar as of March 31, 2014 Data includes asset-weighted performance rankings of all actively-managed Invesco Cross-Border Product Range funds domiciled in Luxembourg and Ireland. PowerShares ETFs are excluded because they are passively-managed. Peer group rankings are based on GIF sectors in Morningstar s International/Offshore universe and calculated on a bid-to-bid basis, inclusive of gross reinvested income and net of fees. Any reference to a rating, a ranking or an award is not a guarantee of investment performance and is not constant over time. Certain funds and products were excluded from the analysis because of limited peer group data. Had these been available, results may have been different. These results are preliminary and subject to revision. AUM measured in three and five year quartile rankings represents for both periods 6% of total Invesco AUM. 13

Well-positioned in EMEA Our UK retail fund range is increasingly diversified Share of gross sales by investment team ($ millions) 3,500 Share of gross sales by investment team % 100 90 3,000 80 2,500 2,000 1,500 1,000 Multi-Asset US Equity GEMs Equity Europe Equity Asia Equity Japan Equity Global Equity UK Equity Fixed Income 70 60 50 40 30 20 Multi-Asset US Equity GEMs Equity Europe Equity Asia Equity Japan Equity Global Equity UK Equity Fixed Income 500 10 0 Q1 13 Q1 14 0 Q1 13 Q1 14 Source: Chronicle. Please note that UK retail fund range refers to UK-domiciled ICVC range. 14

Well-positioned in EMEA Strong growth in European Cross Border Cross Border AUM ($s millions) Cross Border market share 45,000 40,000 4.0% 35,000 3.5% 30,000 3.0% 25,000 2.5% 20,000 2.0% 15,000 1.5% 10,000 1.0% 5,000 0.5% 0 0.0% Dec 2008 Dec 2009 Dec 2010 Dec 2011 Dec 2012 Dec 2013 Source: IMA and SalesWatch, and Chronicle. 15

Well-positioned in EMEA A strong and growing business Ending AUM ($ billions) 1Q 2014 4Q 2013 Invesco Ltd. 787.3 778.7 Invesco EMEA 133.8 178.3 125.3 171.9 44.5 46.6 UK Equity Income AUM EMEA Ex-UK Equity Income AUM 1Q14 LT Net Flows (billions) 4Q13 LT Net Flows (billions) Change in Ending AUM (1Q14 vs. 4Q13) Invesco Ltd. +$6.5 +$1.0 +1% Invesco EMEA (ex-uk Equity Income) +$6.5 +$4.3 +7% UK Equity Income ($3.4) ($4.8) (5%) 16

Well-positioned in EMEA A strong and growing business We are well-positioned for long-term success in EMEA. Our strong and growing business is supported by: A record of delivering strong, long-term investment performance An experienced, capable and well-tenured fund management team supported by a robust investment culture Tremendous breadth and diversity of investment capabilities Strong organic growth Highly regarded and well-recognized brand Resources of a global firm 17

Discussion topics First quarter overview Investment performance and flows Update on EMEA Financial results Questions Appendix 18

Total assets under management 1Q14 vs. 4Q13 ($ billions) 1Q-14 4Q-13 % Change Beginning Assets $778.7 $745.5 4.5% Long-Term Inflows 50.2 45.8 9.6% Long-Term Outflows (43.7) (44.8) (2.5)% Long-Term Net flows 6.5 1.0 550.0% Net flows in Invesco PowerShares QQQ (1.3) 2.6 N/A Net flows in Inst. Money Market Funds (6.1) 1.6 N/A Total Net Flows (0.9) 5.2 N/A Market Gains and Losses/Reinvestment 9.4 27.2 (65.4)% Foreign Currency Translation 0.1 0.8 (87.5)% Ending Assets $787.3 $778.7 1.1% Average Long-Term AUM $659.7 $643.5 2.5% Average Short-Term AUM* $119.9 $118.2 1.4% Average AUM $779.6 $761.7 2.4% Net Revenue Yield (annualized)** 45.6bps 45.0bps Net Revenue Yield Before Performance Fees (annualized)** 43.8bps 44.4bps 19 * Short-term average AUM includes money market of $74.5 billion and PowerShares QQQ $45.4 billion ** Non-GAAP financial measure - See 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 diluted EPS) to the most directly comparable U.S. GAAP financial measure.

Non-GAAP operating results 1Q14 vs. 4Q13 ($ millions) 1Q-14 4Q-13 % Change Adjusted Revenues Investment Management Fees 989 983 0.6% Service and Distribution Fees 239 230 3.7% Performance Fees 34 11 202.7% Other 36 33 7.2% Third-Party Distribution, Service and Advisory Expenses (409) (400) 2.3% Adjusted Net Revenues 888 857 3.6% Adjusted Operating Expenses Employee Compensation 353 332 6.3% Marketing 24 31 (22.2)% Property, Office and Technology 78 75 3.7% General and Administrative 70 72 (2.8)% Total Adjusted Operating Expenses 525 510 2.9% Adjusted Operating Income 363 347 4.6% Adjusted Other Income/(Expense) Equity in Earnings of Unconsolidated Affiliates 3 5 (36.0)% Interest and Dividend Income 4 4 5.0% Interest Expense (19) (15) 23.0% Other Gains and Losses, net 3 2 47.1% Other income/(loss) of CSIP,net 8 4 134.3% Adjusted Income from continuing operations before income taxes 362 346 4.7% Effective Tax Rate 27.0% 25.4% N/A Adjusted Net Income 265 258 2.4% Adjusted net (income)/loss attributable to non-controlling interests in consolidated entities (3) - N/A Adjusted Net Income attributable to common shareholders 262 258 1.4% Adjusted diluted EPS $0.60 $0.58 3.4% Adjusted Operating Margin 40.9% 40.5% Average AUM ($ billions) 779.6 761.7 2.4% Headcount 6,005 5,932 1.2% 20 Non-GAAP financial measures - See 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 diluted EPS) to the most directly comparable U.S. GAAP financial measure.

First quarter overview Strong investment performance contributed to solid operating results Maintained strong, long-term investment performance 81% of actively managed assets ahead of peers on a 3-year basis Net long-term inflows of $6.5 billion driven by strong investment performance and broad demand across a diverse range of capabilities Adjusted operating income 1 up 18.5% over same quarter a year ago Adjusted operating margin 1 improved to 40.9% from 38.9% in same quarter a year ago an increase of 2 percentage points Quarterly dividend raised to 25 cents, up 11.1% from quarterly dividend paid last year 21 1. Non-GAAP financial measures - See Appendix to this presentation for a reconciliation of adjusted operating income (and by calculation adjusted operating margin), to the most directly comparable U.S. GAAP financial measure. Past performance is not a guarantee of future results.

Discussion topics First quarter overview Investment performance and flows Update on EMEA Financial results Questions Appendix 22

Discussion topics First quarter overview Investment performance and flows Update on EMEA Financial results Questions Appendix 23

Investment performance (5-year) By investment objective (actively managed assets)* Percentages in parentheses represent %AUM of each investment objective as a ratio of all objectives (Total ranked AUM of $445.1 billion) Equities % of assets top half of peer group U.S. Core (5%) U.S. Growth (5%) U.S. Value (12%) Sector (1%) % of assets bottom half of peer group 9 13 21 15 91 87 79 85 U.K. (9%) Canadian (1%) Asian (5%) European (4%) 13 28-43 57 87 72 100 *Excludes passive products, closed-end funds, private equity limited partnerships, non-discretionary funds, unit investment trusts, fund of funds with component funds managed by Invesco, stable value building block funds 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. Data as of 3/31/2014. Includes AUM of $445.1 billion (57% 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, IMA, Russell, Mercer, evestment Alliance, SITCA, Value Research) 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. Performance assumes 24 the reinvestment of dividends. Past performance is not indicative of future results and may not reflect an investor s experience.

Investment performance (5-year) By investment objective (actively managed assets)* Percentages in parentheses represent %AUM of each investment objective as a ratio of all objectives (Total ranked AUM of $445.1 billion) Equities Global (4%) Other % of assets top half of peer group % of assets bottom half of peer group Global ex-us and emerging markets (5%) Alternatives (7%) Balanced (9%) 26 4 23 3 74 96 77 97 Fixed income Money market (16%) U.S. fixed income (5%) Global fixed income (5%) Stable value (6%) 3 14 18 24 97 86 82 76 *Excludes passive products, closed-end funds, private equity limited partnerships, non-discretionary funds, unit investment trusts, fund of funds with component funds managed by Invesco, stable value building block funds 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. Data as of 3/31/2014. Includes AUM of $445.1 billion (57% 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, IMA, Russell, Mercer, evestment Alliance, SITCA, Value Research) 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. Performance assumes 25 the reinvestment of dividends. Past performance is not indicative of future results and may not reflect an investor s experience.

Investment performance By investment objective (actively managed assets)* Equities U.S. Core U.S. Growth U.S. Value Sector 1 st quartile 2 nd quartile AUM above benchmark 100% 100% 100% 100% 95% 62% 62% 80% 7% 54% 57% 57% 53% 77% 91% 42% 33% 19% 16% 16% 21% 16% 2% 7% 33% 30% 25% 38% 25% 73% 44% 26% 6% 29% 35% 15% 1% 6% 9% 1-Yr 3-Yr 5-Yr 1-Yr 3-Yr 5-Yr 1-Yr 3-Yr 5-Yr 1-Yr 3-Yr 5-Yr U.K. 100% 99% 100% 98% Canadian Asian European 100% 100% 100% 100% 97% 94% 28% 87% 85% 87% 100% 100% 48% 10% 33% 98% 10% 3% 0% 1-Yr 0% 3-Yr 0% 5-Yr 66% 26% 37% 68% 57% 1-Yr 3-Yr 5-Yr 1-Yr 3-Yr 5-Yr 59% 27% 81% 11% 1-Yr 3-Yr 5-Yr *Excludes passive products, closed-end funds, private equity limited partnerships, non-discretionary funds, unit investment trusts, fund of funds with component funds managed by Invesco, stable value building block funds 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. Data as of 3/31/2014. AUM measured in the one, three, and five year quartile rankings represents 60%, 60%, and 57% of total Invesco AUM, respectively, and AUM measured versus benchmark on a one, three, and five year basis represents 72%, 71, and 67% of total Invesco AUM, respectively, as of 3/31/14. Peer group rankings are sourced from a widely-used third party ranking agency in each fund s market (Lipper, Morningstar, IMA, Russell, Mercer, evestment Alliance, SITCA, Value Research) 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 26 for the most representative fund in each GIPS composite are applied to all products within each GIPS composite. Performance assumes the reinvestment of dividends. Past performance is not indicative of future results and may not reflect an investor s experience. 54% 27% 67% 8% 54% 18% 52%

By investment objective (actively managed assets)* Equities Other Global 85% Investment performance 100% 27% 59% 94% 74% 84% 63% 15% 11% Global ex-u.s. and Emerging markets 78% 100% 99% 99% 1% 22% 20% 79% 75% 76% Alternatives 100% 69% 71% 44% 1 st quartile 2 nd quartile Balanced 100% 22% 47% 50% 62% 33% 23% AUM above benchmark 44% 72% 71% 61% 53% 27% 1-Yr 3-Yr 5-Yr Fixed income 65% 65% 87% 94% 9% 2% 1-Yr 3-Yr 5-Yr 77% 20% 1-Yr 3-Yr 5-Yr 11% 61% 20% 73% 1-Yr 3-Yr 5-Yr 28% 58% 1-Yr 3-Yr 5-Yr Money market U.S. fixed income Global fixed income 100% 60% 70% 100% 87% 90% 100% 71% 5% 33% 35% 51% 47% 1-Yr 3-Yr 5-Yr 1-Yr 3-Yr 5-Yr Stable value 100% 100% 24% 24% 1-Yr 3-Yr 5-Yr *Excludes passive products, closed-end funds, private equity limited partnerships, non-discretionary funds, unit investment trusts, fund of funds with component funds managed by Invesco, stable value building block funds 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. Data as of 3/31/2014. AUM measured in the one, three, and five year quartile rankings represents 60%, 60%, and 57% of total Invesco AUM, respectively, and AUM measured versus benchmark on a one, three, and five year basis represents 72%, 71, and 67% of total Invesco AUM, respectively, as of 3/31/14. Peer group rankings are sourced from a widely-used third party ranking agency in each fund s market (Lipper, Morningstar, IMA, Russell, Mercer, evestment Alliance, SITCA, Value Research) 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 27 for the most representative fund in each GIPS composite are applied to all products within each GIPS composite. Performance assumes the reinvestment of dividends. Past performance is not indicative of future results and may not reflect an investor s experience. 79% 94% 97% 100% 100% 100%

We are diversified as a firm Delivering a diverse set of solutions to meet client needs By client domicile By channel By asset class 3% 12% 67% 15% 68% 22% 7% 8% 32% 10% 7% 49% ($ billions) 1-Yr Change ($ billions) 1-Yr Change ($ billions) 1-Yr Change U.S. Canada U.K. Europe Asia $526.1 $27.1 $115.9 $63.4 $54.8 9.1% 4.2% 10.8% 43.1% 8.7% Retail Institutional $534.6 $252.7 17.5% 0% Equity Balanced Money Market Fixed Income Alternative $388.0 $54.6 $76.1 $177.0 $91.6 21.6% 10.8% (2.2)% 0.6% 7.0% Total $787.3 11.2% Total $787.3 11.2% Total $787.3 11.2% As of March 31, 2014 28

Non-GAAP operating results quarterly ($ millions) 1Q-14 4Q-13 % Change* 3Q-13 2Q-13 1Q-13 4Q-12 3Q-12 2Q-12 Investment Management Fees 989 983 0.6% 938 905 863 836 813 775 Service and Distribution Fees 239 230 3.7% 221 216 206 200 196 187 Performance Fees 34 11 202.7% 9 9 39 4 3 16 Other 36 33 7.2% 33 29 26 27 24 26 Third-party distribution, service and advisory expense (409) (400) 2.3% (384) (369) (346) (336) (328) (318) Total Operating Revenues 888 857 3.6% 816 790 788 731 708 686 Employee Compensation 353 332 6.3% 328 323 335 320 312 290 Marketing 24 31 (22.2)% 24 24 23 24 26 27 Property, Office and Technology 78 75 3.7% 73 68 66 69 66 65 General and Administrative 70 72 (2.8)% 64 64 58 60 59 60 Adjusted Operating Expenses 525 510 2.9% 488 480 482 472 464 441 Adjusted Operating Income 363 347 4.6% 328 311 306 258 244 245 Equity in Earnings of Unconsolidated Affiliates 3 5 (36.0)% 8 4 4 3 2 6 Interest and Dividend Income 4 4 5.0% 3 3 4 4 5 5 Interest Expense (19) (15) 23.0% (10) (10) (10) (13) (13) (13) Other Gains and Losses, net 3 2 47.1% 7 (1) (1) - 10 (2) Other income/(loss) of CSIP, net 8 4 134.3% (1) - - - - - Adjusted Income from Continuing Operations before income taxes and minority interest 362 346 4.7% 335 307 304 252 248 240 Effective Tax Rate** 27.0% 25.4% N/A 26.6% 27.1% 26.6% 24.8% 26.3% 25.1% Adjusted Net Income 265 258 2.4% 246 224 223 189 183 180 Adjusted net (income)/loss attributable to noncontrolling interests in consolidated entities (3) - N/A - - 2 - - - Adjusted Net Income Attributable to Common Shareholders 29 262 258 1.4% 246 224 226 189 183 180 Adjusted Diluted EPS $0.60 $0.58 3.4% $0.55 $0.50 $0.50 $0.42 $0.40 $0.40 * % change based on unrounded figures ** Effective tax rate = Adjusted Tax Expense / (Adjusted income before taxes + (gains)/losses attributable to non-controlling interests in consolidated entities, net) See Reconciliation of US GAAP results to non-gaap results in this appendix

US GAAP operating results quarterly ($ millions) 1Q-14 4Q-13 % Change* 3Q-13 2Q-13 1Q-13 4Q-12 3Q-12 2Q-12 Investment Management Fees 965 955 1.1% 914 886 845 818 791 753 Service and Distribution Fees 239 230 3.7% 221 216 206 200 196 187 Performance Fees 31 9 257.5% 5 6 36 2 3 16 Other 34 31 10.3% 32 28 25 27 24 26 Total Operating Revenues 1,270 1,225 3.6% 1,172 1,136 1,112 1,047 1,014 982 Employee Compensation 362 333 8.6% 330 324 342 322 315 288 Third-Party Distribution, Service and Advisory 405 396 2.3% 381 366 346 350 326 316 Marketing 23 30 (22.0)% 23 24 22 23 26 26 Property, Office and Technology 113 86 31.4% 72 69 67 70 66 65 General and Administrative 122 86 40.7% 80 77 68 73 66 85 Transaction & Integration - - N/A - 2 1 3 3 1 Total Operating Expenses 1,025 932 10.0% 886 862 845 841 803 782 Operating Income 244 293 (16.7)% 286 274 267 206 211 200 Equity in Earnings of Unconsolidated Affiliates 10 10 (2.0)% 10 7 8 8 5 7 Interest and Dividend Income 3 3 (12.1)% 2 2 2 3 3 2 Interest Expense (19) (15) 23.0% (10) (10) (10) (13) (13) (13) Other Gains and Losses, net 7 (19) N/A 3-18 (21) 18 (8) Other income/(loss) of CSIP,net 8 4 134.3% (1) - - - - - Interest Income of Consolidated Investment Products 48 43 13.6% 47 51 50 52 69 69 Interest Expense of Consolidated Investment Products (30) (27) 14.3% (34) (31) (33) (34) (42) (47) Other Gains and (Losses) of Consolidated Investment Products, net 30 27 46 (42.9)% 38 (2) (21) (28) (25) 77 Income from continuing operations before income taxes 298 339 (12.0)% 343 292 282 173 226 287 Effective Tax Rate** 29.9% 21.9% N/A 27.1% 28.7% 28.4% 27.3% 30.2% 28.7% Income from continuing operations, net of taxes Income/(loss) from discontinued operations, net of taxes 209 264 (21.0)% 250 208 196 117 154 226 (2) 66 N/A (1) (5) 4 11 3 2 Net Income 207 331 (37.5)% 249 204 200 128 157 228 Net (Income)/Loss Attributable to Noncontrolling Interests in Consolidated Entities (19) (43) (56.2)% (21) (1) 23 31 14 (74) Net Income Attributable to Common Shareholders 188 287 (34.7)% 228 203 222 159 171 154 Diluted EPS from continuing operations $0.43 $0.50 (14.0)% $0.51 $0.46 $0.49 $0.33 $0.37 $0.33 Diluted EPS from discontinued operations - $0.15 N/A - ($0.01) $0.01 $0.02 $0.01 - Total diluted $0.43 $0.64 (32.8)% $0.51 $0.45 $0.49 $0.35 $0.38 $0.34 * % change based on unrounded figures ** Effective tax rate = Tax Expense / (Income before income taxes+ (gains)/losses attributable to noncontrolling interests in consolidated entities, net)

Total assets under management quarterly ($ billions) 1Q-14 4Q-13 % Change 3Q-13 2Q-13 1Q-13 Beginning Assets $778.7 $745.5 4.5% $705.6 $707.7 $667.4 Long-Term Inflows 50.2 45.8 9.6% 41.8 44.4 47.6 Long-Term Outflows (43.7) (44.8) (2.5)% (36.8) (43.0) (33.3) Long-Term Net flows 6.5 1.0 550.0% 5.0 1.4 14.3 Net flows in Invesco PowerShares QQQ (1.3) 2.6 N/A 0.8 0.7 (0.4) Net flows in Inst. Money Market Funds (6.1) 1.6 N/A 3.3 (0.7) 4.8 Total Net Flows (0.9) 5.2 N/A 9.1 1.4 18.7 Market Gains and Losses/Reinvestment 9.4 27.2 (65.4)% 22.4 (1.3) 30.6 Foreign Currency Translation 0.1 0.8 (87.5)% 8.4 (2.2) (9.0) Ending Assets $787.3 $778.7 1.1% $745.5 $705.6 $707.7 Average Long-Term AUM $659.7 $643.5 2.5% $616.2 $609.1 $586.0 Average Short-Term AUM $119.9 $118.2 1.4% $113.2 $110.7 $105.6 Average AUM $779.6 $761.7 2.4% $729.4 $719.8 $691.6 Gross Revenue Yield (annualized)* 65.6bps 64.7bps 64.6bps 63.4bps 64.6bps Gross Revenue Yield Less Performance Fees (annualized)* 64.0bps 64.3bps 64.3bps 63.1bps 62.5bps Net Revenue Yield (annualized)** 45.6bps 45.0bps 44.8bps 43.9bps 45.6bps Net Revenue Yield Less Performance Fees (annualized)** 43.8bps 44.4bps 44.3bps 43.4bps 43.3bps 31 * Gross revenue yield on AUM is equal to total operating revenues divided by average AUM, excluding JV AUM. Average AUM for 1Q14, for our joint ventures in China were $5.1bn (4Q13:$4.8bn;3Q13:$4.0bn;2Q13:$3.6bn; 1Q13:$3.3bn) **Net Revenue Yield on AUM is equal to net revenues divided by average AUM including JV AUM. Average AUM for 1Q14, for our JV in China were $5.1bn (4Q13:$4.8bn;3Q13:$4.0bn;2Q13:$3.6bn; 1Q13:$3.3bn)

Total assets under management by asset class ($ billions) Total Equity Fixed Income Balanced Money Market Alternative September 30, 2013 $745.5 $353.2 $172.4 $53.5 $81.1 $85.3 Long-Term Inflows 45.8 26.2 7.2 3.4 0.8 8.2 Long-Term Outflows (44.8) (24.7) (8.9) (4.6) (0.9) (5.7) Long-Term Net flows 1.0 1.5 (1.7) (1.2) (0.1) 2.5 Net flows in Invesco PowerShares QQQ Net flows in Inst. Money Market Fund Market Gains and Losses/Reinvestment 2.6 2.6 - - - - 1.6 - - - 1.6-27.2 25.1 0.9 0.8 0.1 0.3 Foreign Currency Translation 0.8 0.7 0.1 0.2 - (0.2) December 31, 2013 $778.7 $383.1 $171.7 $53.3 $82.7 $87.9 Long-Term Inflows 50.2 27.4 9.6 5.0 0.8 7.4 Long-Term Outflows (43.7) (26.2) (6.7) (4.4) (1.0) (5.4) Long-Term Net flows 6.5 1.2 2.9 0.6 (0.2) 2.0 Net flows in Invesco PowerShares QQQ Net flows in Inst. Money Market Fund Market Gains and Losses/Reinvestment (1.3) (1.3) - - - - (6.1) - - - (6.1) - 9.4 5.0 2.3 0.8 (0.3) 1.6 Foreign Currency Translation 0.1-0.1 (0.1) - 0.1 March 31, 2014 $787.3 $388.0 $177.0 $54.6 $76.1 $91.6 32

Total assets under management by asset class ($ billions) Total Equity Fixed Income Balanced Money Market Alternative March 31, 2013 $707.7 $319.1 $175.9 $49.3 $77.8 $85.6 Long-Term Inflows 44.4 21.0 9.6 5.6 1.2 7.0 Long-Term Outflows (43.0) (22.4) (9.5) (3.5) (0.7) (6.9) Long-Term Net flows 1.4 (1.4) 0.1 2.1 0.5 0.1 Net flows in Invesco PowerShares QQQ 0.7 0.7 - - - - Net flows in Inst. Money Market Fund Market Gains and Losses/Reinvestment (0.7) - - - (0.7) - (1.3) 4.3 (2.7) (1.5) 0.2 (1.6) Foreign Currency Translation (2.2) (1.3) (0.2) (0.2) - (0.5) June 30, 2013 $705.6 $321.4 $173.1 $49.7 $77.8 $83.6 Long-Term Inflows 41.8 22.8 8.4 3.7 1.0 5.9 Long-Term Outflows (36.8) (18.2) (9.5) (3.5) (1.1) (4.5) Long-Term Net flows 5.0 4.6 (1.1) 0.2 (0.1) 1.4 Net flows in Invesco PowerShares QQQ 0.8 0.8 - - - - Net flows in Inst. Money Market Fund Market Gains and Losses/Reinvestment 3.3 - - - 3.3-22.4 20.7 (0.7) 2.3 0.2 (0.1) Foreign Currency Translation 8.4 5.7 1.1 1.3 (0.1) 0.4 September 30, 2013 $745.5 $353.2 $172.4 $53.5 $81.1 $85.3 33

Total assets under management by channel ($ billions) Total Retail Institutional September 30, 2013 $745.5 $492.0 $253.5 Long-Term Inflows 45.8 35.8 10.0 Long-Term Outflows (44.8) (36.1) (8.7) Long-Term Net flows 1.0 (0.3) 1.3 Net flows in Invesco PowerShares QQQ 2.6 2.6 - Net flows in Inst. Money Market Funds 1.6-1.6 Market Gains and Losses/Reinvestment 27.2 24.0 3.2 Foreign Currency Translation 0.8 1.3 (0.5) December 31, 2013 $778.7 $519.6 $259.1 Long-Term Inflows 50.2 39.6 10.6 Long-Term Outflows (43.7) (32.0) (11.7) Long-Term Net flows 6.5 7.6 (1.1) Net flows in Invesco PowerShares QQQ (1.3) (1.3) - Net flows in Inst. Money Market Funds (6.1) - (6.1) Market Gains and Losses/Reinvestment 9.4 8.8 0.6 Foreign Currency Translation 0.1 (0.1) 0.2 March 31, 2014 $787.3 $534.6 $252.7 34

Total assets under management by channel ($ billions) Total Retail Institutional March 31, 2013 $707.7 $454.9 $252.8 Long-Term Inflows 44.4 37.7 6.7 Long-Term Outflows (43.0) (32.8) (10.2) Long-Term Net flows 1.4 4.9 (3.5) Net flows in Invesco PowerShares QQQ 0.7 0.7 - Net flows in Inst. Money Market Funds (0.7) - (0.7) Market Gains and Losses/Reinvestment (1.3) (1.6) 0.3 Foreign Currency Translation (2.2) (1.2) (1.0) June 30, 2013 $705.6 $457.7 $247.9 Long-Term Inflows 41.8 35.5 6.3 Long-Term Outflows (36.8) (29.0) (7.8) Long-Term Net flows 5.0 6.5 (1.5) Net flows in Invesco PowerShares QQQ 0.8 0.8 - Net flows in Inst. Money Market Funds 3.3-3.3 Market Gains and Losses/Reinvestment 22.4 19.6 2.8 Foreign Currency Translation 8.4 7.4 1.0 September 30, 2013 $745.5 $492.0 $253.5 35

Total assets under management by client domicile ($ billions) Total U.S. Canada U.K. Continental Europe Asia September 30, 2013 $745.5 $502.5 $26.4 $113.1 $51.6 $51.9 Long-Term Inflows 45.8 23.3 0.9 4.2 9.3 8.1 Long-Term Outflows (44.8) (24.5) (1.1) (8.4) (5.9) (4.9) Long-Term Net flows 1.0 (1.2) (0.2) (4.2) 3.4 3.2 Net flows in Invesco PowerShares QQQ 2.6 2.6 - - - - Net flows in Inst. Money Market Funds 1.6 (1.6) 0.1 (0.3) 3.2 0.2 Market Gains and Losses/Reinvestment 27.2 18.9 1.7 3.8 2.5 0.3 Foreign Currency Translation 0.8 0.1 (0.9) 2.4 0.2 (1.0) December 31, 2013 $778.7 $521.3 $27.1 $114.8 $60.9 $54.6 Long-Term Inflows 50.2 24.7 1.1 5.1 11.3 8.0 Long-Term Outflows (43.7) (21.1) (1.2) (6.9) (6.5) (8.0) Long-Term Net flows 6.5 3.6 (0.1) (1.8) 4.8 - Net flows in Invesco PowerShares QQQ (1.3) (1.3) - - - - Net flows in Inst. Money Market Funds (6.1) (3.4) (0.1) 0.5 (3.1) - Market Gains and Losses/Reinvestment 9.4 5.9 1.2 1.6 0.8 (0.1) Foreign Currency Translation 0.1 - (1.0) 0.8-0.3 March 31, 2014 $787.3 $526.1 $27.1 $115.9 $63.4 $54.8 36

Total assets under management by client domicile ($ billions) Total U.S. Canada U.K. Continental Europe Asia March 31, 2013 $707.7 $482.4 $26.0 $104.6 $44.3 $50.4 Long-Term Inflows 44.4 25.6 0.9 4.4 7.5 6.0 Long-Term Outflows (43.0) (25.9) (1.3) (5.0) (5.0) (5.8) Long-Term Net flows 1.4 (0.3) (0.4) (0.6) 2.5 0.2 Net flows in Invesco PowerShares QQQ 0.7 0.7 - - - - Net flows in Inst. Money Market Funds (0.7) (0.4) - 0.1 (0.1) (0.3) Market Gains and Losses/Reinvestment (1.3) (0.9) 0.1 0.3 (0.4) (0.4) Foreign Currency Translation (2.2) - (0.9) (0.1) 0.1 (1.3) June 30, 2013 $705.6 $481.5 $24.8 $104.3 $46.4 $48.6 Long-Term Inflows 41.8 25.7 0.8 4.0 6.4 4.9 Long-Term Outflows (36.8) (23.7) (1.0) (4.3) (4.2) (3.6) Long-Term Net flows 5.0 2.0 (0.2) (0.3) 2.2 1.3 Net flows in Invesco PowerShares QQQ 0.8 0.8 - - - - Net flows in Inst. Money Market Funds 3.3 3.4 0.1 (0.2) - - Market Gains and Losses/Reinvestment 22.4 14.7 1.1 2.7 2.5 1.4 Foreign Currency Translation 8.4 0.1 0.6 6.6 0.5 0.6 September 30, 2013 $745.5 $502.5 $26.4 $113.1 $51.6 $51.9 37

Passive assets under management by asset class ($ billions) Total Equity Fixed Income Balanced Money Market Alternative September 30, 2013 $129.6 $74.1 $39.6 - - $15.9 Long-Term Inflows 8.6 6.3 1.7 - - 0.6 Long-Term Outflows (7.9) (4.5) (1.6) - - (1.8) Long-Term Net flows 0.7 1.8 0.1 - - (1.2) Net flows in Invesco PowerShares QQQ Net flows in Inst. Money Market Funds Market Gains and Losses/Reinvestment 2.6 2.6 - - - - - - - - 7.0 7.1 (0.2) - - 0.1 Foreign Currency Translation (0.2) - - - - (0.2) December 31, 2013 $139.7 $85.6 $39.5 - - $14.6 Long-Term Inflows 8.6 5.4 2.2 - - 1.0 Long-Term Outflows (5.3) (3.2) (1.2) - - (0.9) Long-Term Net flows 3.3 2.2 1.0 - - 0.1 Net flows in Invesco PowerShares QQQ Net flows in Inst. Money Market Funds Market Gains and Losses/Reinvestment (1.3) (1.3) - - - - - - - - 1.2 0.5 0.4 - - 0.3 Foreign Currency Translation - - - - - - March 31, 2014 $142.9 $87.0 $40.9 - - $15.0 38

Passive assets under management by asset class ($ billions) Total Equity Fixed Income Balanced Money Market Alternative March 31, 2013 $123.1 $62.0 $41.9 - - $19.2 Long-Term Inflows 11.8 6.8 4.0 - - 1.0 Long-Term Outflows (10.5) (4.8) (2.2) - - (3.5) Long-Term Net flows 1.3 2.0 1.8 - - (2.5) Net flows in Invesco PowerShares QQQ Net flows in Inst. Money Market Funds Market Gains and Losses/Reinvestment 0.7 0.7 - - - - - - - - (1.0) 1.0 (1.2) - - (0.8) Foreign Currency Translation (0.4) - - - - (0.4) June 30, 2013 $123.7 $65.7 $42.5 - - $15.5 Long-Term Inflows 8.7 6.0 1.6 - - 1.1 Long-Term Outflows (8.5) (3.6) (3.9) - - (1.0) Long-Term Net flows 0.2 2.4 (2.3) - - 0.1 Net flows in Invesco PowerShares QQQ 0.8 0.8 - - Net flows in Inst. Money Market Funds Market Gains and Losses/Reinvestment - - - - - - 4.9 5.2 (0.6) - - 0.3 Foreign Currency Translation - - - - - - September 30, 2013 $129.6 $74.1 $39.6 - - $15.9 39

Passive assets under management by channel ($ billions) Total Retail Institutional September 30, 2013 $129.6 $108.3 $21.3 Long-Term Inflows 8.6 7.6 1.0 Long-Term Outflows (7.9) (7.1) (0.8) Long-Term Net flows 0.7 0.5 0.2 Net flows in Invesco PowerShares QQQ 2.6 2.6 - Net flows in Inst. Money Market Funds - - - Market Gains and Losses/Reinvestment 7.0 6.8 0.2 Foreign Currency Translation (0.2) - (0.2) December 31, 2013 $139.7 $118.2 $21.5 Long-Term Inflows 8.6 7.9 0.7 Long-Term Outflows (5.3) (4.5) (0.8) Long-Term Net flows 3.3 3.4 (0.1) Net flows in Invesco PowerShares QQQ (1.3) (1.3) - Net flows in Inst. Money Market Funds - - - Market Gains and Losses/Reinvestment 1.2 1.2 - Foreign Currency Translation - - - March 31, 2014 $142.9 $121.5 $21.4 40

Passive assets under management by channel ($ billions) Total Retail Institutional March 31, 2013 $123.1 $98.5 $24.6 Long-Term Inflows 11.8 10.1 1.7 Long-Term Outflows (10.5) (8.2) (2.3) Long-Term Net flows 1.3 1.9 (0.6) Net flows in Invesco PowerShares QQQ 0.7 0.7 - Net flows in Inst. Money Market Funds - - - Market Gains and Losses/Reinvestment (1.0) (1.1) 0.1 Foreign Currency Translation (0.4) - (0.4) June 30, 2013 $123.7 $100.0 $23.7 Long-Term Inflows 8.7 8.7 - Long-Term Outflows (8.5) (6.0) (2.5) Long-Term Net flows 0.2 2.7 (2.5) Net flows in Invesco PowerShares QQQ 0.8 0.8 - Net flows in Inst. Money Market Funds - - - Market Gains and Losses/Reinvestment 4.9 4.8 0.1 Foreign Currency Translation - - - September 30, 2013 $129.6 $108.3 $21.3 41

Passive assets under management by client domicile ($ billions) Total U.S. Canada U.K. Continental Europe Asia September 30, 2013 $129.6 $125.4 $0.1 - $1.4 $2.7 Long-Term Inflows 8.6 8.4 - - 0.2 - Long-Term Outflows (7.9) (7.9) - - - - Long-Term Net flows 0.7 0.5 - - 0.2 - Net flows in Invesco PowerShares QQQ 2.6 2.6 - - Net flows in Inst. Money Market Funds - - - - - - Market Gains and Losses/Reinvestment 7.0 6.7 - - 0.2 0.1 Foreign Currency Translation (0.2) - - - - (0.2) December 31, 2013 $139.7 $135.2 $0.1 - $1.8 $2.6 Long-Term Inflows 8.6 8.5 - - 0.1 - Long-Term Outflows (5.3) (5.1) - - (0.1) (0.1) Long-Term Net flows 3.3 3.4 - - - (0.1) Net flows in Invesco PowerShares QQQ (1.3) (1.3) - - Net flows in Inst. Money Market Funds - - - - - - Market Gains and Losses/Reinvestment 1.2 1.2 - - - - Foreign Currency Translation - - - - - - March 31, 2014 $142.9 $138.5 $0.1 - $1.8 $2.5 42

Passive assets under management by client domicile ($ billions) Total U.S. Canada U.K. Continental Europe Asia March 31, 2013 $123.1 $116.9 $0.1 - $1.2 $4.9 Long-Term Inflows 11.8 11.5 - - 0.2 0.1 Long-Term Outflows (10.5) (8.3) - - (0.1) (2.1) Long-Term Net flows 1.3 3.2 - - 0.1 (2.0) Net flows in Invesco PowerShares QQQ 0.7 0.7 - - Net flows in Inst. Money Market Funds - - - - - - Market Gains and Losses/Reinvestment (1.0) (1.1) - - - 0.1 Foreign Currency Translation (0.4) - - - - (0.4) June 30, 2013 $123.7 $119.7 $0.1 - $1.3 $2.6 Long-Term Inflows 8.7 8.6 - - 0.1 - Long-Term Outflows (8.5) (8.4) - - (0.1) - Long-Term Net flows 0.2 0.2 - - - - Net flows in Invesco PowerShares QQQ 0.8 0.8 - - Net flows in Inst. Money Market Funds - - - - - - Market Gains and Losses/Reinvestment 4.9 4.7 - - 0.1 0.1 Foreign Currency Translation - - - - - - September 30, 2013 $129.6 $125.4 $0.1 - $1.4 $2.7 43

Reconciliation of US GAAP results to non-gaap results three months ended March 31, 2014 * Other: Please refer to pages 18-22 in the 1Q 2014 earnings press release for a description of the adjustments ($ millions) Operating Revenues US GAAP Basis Proportional Consolidation of Joint Ventures 3 rd party distribution, service and advisory expenses Acquisition related Market appreciation / depreciation of deferred compensation awards Consolidated Investment Products Other* Non-GAAP basis Investment Management Fees 965 18 - - - 6-989 Service and Distribution Fees 239 - - - - - - 239 Performance Fees 31 - - - - 3-34 Other 34 1 - - - - - 36 Third-Party Distribution, Service and Advisory - (4) (405) - - - - (409) Total Operating Revenues reconciled to net revenues Operating Expenses 1270 15 (405) - - 8-888 Employee Compensation 362 3 - - (4) - (7) 353 Third-Party Distribution, Service and Advisory 405 - (405) - - - - - Marketing 23 1 - - - - - 24 Property, Office and Technology 113 1 - - - - (36) 78 General and Administrative 122 2 - (4) - (13) (37) 70 Transaction & Integration - - - - - - - - Total Operating Expenses 1025 6 (405) (4) (4) (13) (80) 525 Operating Income reconciled to adjusted operating income 244 10-4 4 21 80 363 Equity in Earnings of Unconsolidated Affiliates 10 (8) - - - 1-3 Interest and Dividend Income 3 1 - - (1) 1-4 Interest Expense (19) - - - - - - (19) Other Gains and Losses, net 7 - - - (4) - - 3 Other income/(loss) of CSIP, net 8 - - - - - - 8 Interest Income of Consolidated Investment Products 48 - - - - (48) - - Interest Expense of Consolidated Investment Products (30) - - - - 30 - - Other Gains and (Losses) of Consolidated Investment Products, net 27 - - - - (27) - - Income from continuing operations before income taxes 298 3-4 - (21) 80 362 Income Tax Provision (89) (3) - 5 - - (11) (98) Income from continuing operations, net of income taxes 209 - - 9 - (21) 69 265 Income/(loss) from discontinued operations, net of taxes (2) - - 2 - - - - Net income 207 - - 11 - (21) 69 265 Net (Income)/Loss Attributable to Noncontrolling Interests in Consolidated Entities (19) - - - - 16 - (3) Net Income Attributable to Common Shareholders reconciled to adjusted net income attributable to common shareholders 188 - - 11 - (5) 69 262 Diluted EPS from continuing operations $0.43 Adjusted diluted EPS $0.60 Diluted EPS from discontinued operations - Diluted Shares Outstanding 437.4 Diluted EPS $0.43 Adjusted Operating Margin 40.9% Diluted Shares Outstanding Operating margin 44 437.4 19.2%

Reconciliation of US GAAP results to non-gaap results three months ended December 31, 2013 * Other: Please refer to pages 19-21 in the 4Q 2013 earnings press release for a description of the adjustments ($ millions) Operating Revenues US GAAP Basis Proportional Consolidation of Joint Ventures 3 rd party distribution, service and advisory expenses Acquisition related Market appreciation / depreciation of deferred compensation awards Consolidated Investment Products Other* Non-GAAP basis Investment Management Fees 955 18 - - - 6 4 983 Service and Distribution Fees 230 - - - - - - 230 Performance Fees 9 - - - - 2-11 Other 31 2 - - - - - 33 Third-Party Distribution, Service and Advisory - (4) (396) - - - - (400) Total Operating Revenues reconciled to net revenues Operating Expenses 1225 16 (396) - - 8 4 857 Employee Compensation 333 8 - - (8) - (1) 332 Third-Party Distribution, Service and Advisory 396 - (396) - - - - - Marketing 30 1 - - - - - 31 Property, Office and Technology 86 1 - - - - (12) 75 General and Administrative 86 2 - (6) - (10) - 72 Transaction & Integration - - - - - - - - Total Operating Expenses 932 11 (396) (6) (8) (10) (13) 510 Operating Income reconciled to adjusted operating income 293 5-6 8 18 17 347 Equity in Earnings of Unconsolidated Affiliates 10 (4) - - - (1) - 5 Interest and Dividend Income 3 1 - - (1) 1-4 Interest Expense (15) - - - - - - (15) Other Gains and Losses, net (19) - - - (11) - 32 2 Other income/(loss) of CSIP, net 4 - - - - - - 4 Interest Income of Consolidated Investment Products 43 - - - - (43) - - Interest Expense of Consolidated Investment Products (27) - - - - 27 - - Other Gains and (Losses) of Consolidated Investment Products, net 46 - - - - (46) - - Income from continuing operations before income taxes 339 1-6 (4) (44) 49 346 Income Tax Provision (74) (1) - 4 1 - (18) (88) Income from continuing operations, net of income taxes 264 - - 10 (3) (44) 31 258 Income/(loss) from discontinued operations, net of taxes 66 - - (66) - - - - Net income 331 - - (57) (3) (44) 31 258 Net (Income)/Loss Attributable to Noncontrolling Interests in Consolidated Entities (43) - - - - 43 - - Net Income Attributable to Common Shareholders reconciled to adjusted net income attributable to common shareholders 287 - - (57) (3) (1) 31 258 Diluted EPS from continuing operations $0.50 Adjusted diluted EPS $0.58 Diluted EPS from discontinued operations $0.15 Diluted Shares Outstanding 445.9 Diluted EPS $0.64 Adjusted Operating Margin 40.5% Diluted Shares Outstanding Operating margin 45 445.9 23.9%

Reconciliation of US GAAP results to non-gaap results three months ended September 30, 2013 * Other: Please refer to pages 19-21 in the 3Q 2013 earnings press release for a description of the adjustments ($ millions) Operating Revenues US GAAP Basis Proportional Consolidation of Joint Ventures 3 rd party distribution, service and advisory expenses Acquisition related Market appreciation / depreciation of deferred compensation awards Consolidated Investment Products Other* Non-GAAP basis Investment Management Fees 914 15 - - - 9-938 Service and Distribution Fees 221 - - - - - - 221 Performance Fees 5 - - - - 3-9 Other 32 2 - - - - - 33 Third-Party Distribution, Service and Advisory - (3) (381) - - - - (384) Total Operating Revenues reconciled to net revenues Operating Expenses 1,172 14 (381) - - 12-816 Employee Compensation 330 4 - - (7) - - 328 Third-Party Distribution, Service and Advisory 381 - (381) - - - - - Marketing 23 1 - - - - - 24 Property, Office and Technology 72 1 - - - - - 73 General and Administrative 80 1 - (4) - (13) (1) 64 Transaction & Integration - - - - - - - - Total Operating Expenses 886 7 (381) (4) (7) (13) (1) 488 Operating Income reconciled to adjusted operating income 286 6-4 7 25 1 328 Equity in Earnings of Unconsolidated Affiliates 10 (5) - - - 2-8 Interest and Dividend Income 2 1 - - (1) 1-3 Interest Expense (10) - - - - - - (10) Other Gains and Losses, net 4 - - - (9) 12 1 7 Other income/(loss) of CSIP, net (1) - - - - - - (1) Interest Income of Consolidated Investment Products 47 - - - - (47) - - Interest Expense of Consolidated Investment Products (34) - - - - 34 - - Other Gains and (Losses) of Consolidated Investment Products, net 38 - - - - (38) - - Income from continuing operations before income taxes 343 2-4 (4) (11) 1 335 Income Tax Provision (93) (2) - 5 1 - - (89) Income from continuing operations, net of income taxes 250 - - 9 (3) (11) 1 246 Income/(loss) from discontinued operations, net of taxes (1) - - 1 - - - - Net income 249 - - 10 (3) (11) 1 246 Net (Income)/Loss Attributable to Noncontrolling Interests in Consolidated Entities Net Income Attributable to Common Shareholders reconciled to adjusted net income attributable to common shareholders (21) - - - - 21 - - 228 - - 10 (3) 9 1 246 Diluted EPS from continuing operations $0.51 Adjusted diluted EPS $0.55 Diluted EPS from discontinued operations - Diluted Shares Outstanding 448.8 Diluted EPS $0.51 Adjusted Operating Margin 40.2% Diluted Shares Outstanding 448.8 Operating margin 46 24.4%

Reconciliation of US GAAP results to non-gaap results three months ended June 30, 2013 * Other: Please refer to pages 19-21 in the 2Q 2013 earnings press release for a description of the adjustments ($ millions) Operating Revenues US GAAP Basis Proportional Consolidation of Joint Ventures 3 rd party distribution, service and advisory expenses Acquisition related Market appreciation / depreciation of deferred compensation awards Consolidated Investment Products Other* Non-GAAP basis Investment Management Fees 886 13 - - - 6-905 Service and Distribution Fees 216 - - - - - - 216 Performance Fees 6 - - - - 3-9 Other 28 1 - - - - - 29 Third-Party Distribution, Service and Advisory - (3) (366) - - - - (369) Total Operating Revenues reconciled to net revenues Operating Expenses 1136 12 (366) - - 9-790 Employee Compensation 324 3 - - (3) - (1) 323 Third-Party Distribution, Service and Advisory 366 - (366) - - - - - Marketing 24 1 - - - - - 24 Property, Office and Technology 69 1 - - - - (1) 68 General and Administrative 77 1 - (4) - (9) (1) 64 Transaction & Integration 2 - - (2) - - - - Total Operating Expenses 862 5 (366) (6) (3) (9) (3) 480 Operating Income reconciled to adjusted operating income 274 7-6 3 18 3 311 Equity in Earnings of Unconsolidated Affiliates 7 (4) - - - 1-4 Interest and Dividend Income 2 1 - - (1) 2-3 Interest Expense (10) - - - - - - (10) Other Gains and Losses, net - - - - (1) - (1) (1) Interest Income of Consolidated Investment Products 51 - - - - (51) - - Interest Expense of Consolidated Investment Products (31) - - - - 31 - - Other Gains and (Losses) of Consolidated Investment Products, net (2) - - - - 2 - - Income from continuing operations before income taxes 292 3-6 1 2 3 307 Income Tax Provision (84) (3) - 4 - - (1) (83) Income from continuing operations, net of income taxes 208 - - 10 1 2 2 224 Income/(loss) from discontinued operations, net of taxes (5) - - 5 - - - - Net income 204 - - 14 1 2 2 224 Net (Income)/Loss Attributable to Noncontrolling Interests in Consolidated Entities (1) - - - - 1 - - Net Income Attributable to Common Shareholders reconciled to adjusted net income attributable to common shareholders 203 - - 14 1 4 2 224 Diluted EPS from continuing operations $0.46 Adjusted diluted EPS $0.50 Diluted EPS from discontinued operations ($0.01) Diluted Shares Outstanding 450.1 Diluted EPS $0.45 Adjusted Operating Margin 39.3% Diluted Shares Outstanding Operating margin 47 450.1 24.1%