Bank of America/Merrill Lynch Banking and Financial Services Conference Commitment to investment excellence Martin L. Flanagan President and Chief Executive Officer Invesco Ltd. November 15, 2011 All information as of September 30, 2011 unless otherwise noted. Please refer to the Appendix for important information
Invesco: Who we are A leading independent global investment manager Our global resources include: $598.4 billion in assets under management around the globe. Specialized investment teams managing investments across a wide range of asset classes and investment styles. More than 600 investment professionals and more than 6,000 employees worldwide. Local client support in more than 20 countries, serving clients in more than 150 countries. Our clients benefit from our: Commitment to investment excellence. Depth of investment capabilities. Organizational strength. Source: Invesco. All data as of September 30, 2011. Invesco Ltd. AUM includes all assets under advisement, distributed and overseen by Invesco, including those of its affiliates Invesco Distributors, Inc. and Invesco PowerShares Capital Management LLC, which have an agreement with Deutsche Bank to provide certain marketing services for the PowerShares DB products. Invesco PowerShares Capital Management LLC is the sponsor for the PowerShares QQQ and BLDRS products and unit investment trusts. ALPS Distributors, Inc. is the distributor of PowerShares QQQ, BLDRS Funds and the PowerShares DB Funds. Invesco PowerShares Capital Management LLC and Invesco Distributors, Inc. are wholly-owned, indirect subsidiaries of Invesco Ltd. Invesco Distributors, Inc. is the U.S. distributor for Invesco Ltd. s retail products. Invesco Ltd. is not affiliated with ALPS Distributors, Inc. or Deutsche Bank. 2
Invesco focuses on four key strategic priorities The markets are global and so is our company Achieve strong investment performance Perpetuate a high-performance organization Take advantage of our world of opportunity as a premier global investment management firm Deliver our investment capabilities anywhere in the world to meet client needs Harness the power of our global operating platform 3
Achieve strong investment performance 4 Source: Invesco. Client-related data, investment professional and employee data are as of Sept. 30, 2011. Invesco Ltd. assets under management are as of Sept. 30, 2011; refer to page 2 for additional information on AUM. 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. The entities listed are each wholly owned, indirect subsidiaries of Invesco Ltd., except ALPS Distributors Inc., Deutsche Bank and 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.
Achieve strong investment performance Invesco s Enterprise Risk Management (ERM) Framework: A strong and effective foundation for a sound risk-management culture Board of Directors and Independent Fund Boards Executive Management Team Risk Oversight & Governance Investment Credit/Asset/ Liability Risk Areas of Focus Financial Operational Business Global Performance Measurement and Risk Facilitates investment oversight function Independently reviews investment execution and process application Monitors consistency of investment results with mandates, market environments, client and CIO expectations 50+ professionals Corporate Risk Management Committee Timely and consistent identification, evaluation, and mitigation of operational and business risk Senior executives from all major business functions including: Investment management/trading Product management Administration (IT, IO, HR, Procurement) Portfolio operations Legal and compliance Finance and internal audit Strategy Risk Management Facilitation Investment Risk Management Managing our core risks through the Investment Centers Business/Operational Risk Management Managing all other risks in the business Risk management embedded in the business Compliance and Internal Audit Facilitate and monitor internal control at all levels Internal Control
Achieve strong investment performance Aggregate performance analysis asset weighted Percent of assets in top half of peer group* 1-Year 3-Year 5-Year 68% 78% 82% 32% 22% 18% % Assets top half of peer group % Assets bottom half of peer group * Includes AUM of $338.8 billion (57% of total IVZ) for 1 year, $333.7 billion (56% of total IVZ) for three year, and $329.1 billion (55% 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 assetweighted 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 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. 6
Deliver our investment capabilities anywhere in the world A wide range of investment capabilities Equity Fixed Income and Money Market Asset Allocation Alternative AUM: $253.2 B AUM: $220.3 B AUM: $41.5 B AUM: $83.5 B Market cap Investment style Global/regional/ single country Developed/ emerging Sector Quantitative Directional long/short (130/30) Duration Quality Sector Global/regional Developed/ emerging Taxability Municipals Investment grade High yield State specific Active balanced Global macro Risk parity (risk premia capture) Target maturity Target risk Traditional balanced Absolute return Market neutral Multistrategy Private equity Fund of funds Buyout, emerging Capital protection (Europe/ Australia) Commodities Financial structures Bank loans Credit arbitrage Opportunistic Real estate Public real estate securities Private direct U.S., Asian, European, global Source: Invesco. Invesco Ltd. AUM is as of September 30, 2011; refer to slide 2 for additional information on AUM. Not all products, materials or services are available to all investors. Offshore products are only available via financial intermediaries and include residency restrictions. 7
Deliver our investment capabilities anywhere in the world A wide range of investment capabilities Equity Fixed Income and Money Market Asset Allocation AUM: $253.2 B AUM: $220.3 B AUM: $41.5 B AUM: $83.5 B Market cap Investment style Global/regional/ single country Developed/ emerging Sector Quantitative Directional long/short (130/30) Duration Quality Sector Global/regional Developed/ emerging Taxability Municipals Investment grade High yield State specific Active balanced Global macro Risk parity (risk premia capture) Target maturity Target risk Traditional balanced Absolute return Market neutral Multistrategy Private equity Fund of funds Buyout, emerging Capital protection (Europe/ Australia) Commodities Institutional separate accounts Private placements Collective trusts Subadvised Mutual funds (open/closed end, on/offshore) Separately managed accounts/unified managed accounts Alternative Delivered to investors through diverse investment vehicles Exchange-traded funds (ETFs) Variable insurance funds Financial structures Bank loans Credit arbitrage Opportunistic Real estate Public real estate securities Private direct U.S., Asian, European, global Unit investment trusts (UITs) Customized solutions 8 Source: Invesco. Invesco Ltd. AUM is as of September 30, 2011; refer to slide 2 for additional information on AUM. Not all products, materials or services are available to all investors. Offshore products are only available via financial intermediaries and include residency restrictions.
Deliver our investment capabilities anywhere in the world A wide range of investment capabilities Equity Fixed Income and Money Market Asset Allocation AUM: $253.2 B AUM: $220.3 B AUM: $41.5 B AUM: $83.5 B Market cap Investment style Global/regional/ single country Developed/ emerging Sector Quantitative Directional long/short (130/30) Duration Quality Sector Global/regional Developed/ emerging Taxability Municipals Investment grade High yield State specific Active balanced Global macro Risk parity (risk premia capture) Target maturity Target risk Traditional balanced Absolute return Market neutral Multistrategy Private equity Fund of funds Buyout, emerging Capital protection (Europe/ Australia) Commodities Institutional separate accounts Private placements Collective trusts Subadvised Mutual funds (open/closed end, on/offshore) Separately managed accounts/unified managed accounts Alternative Delivered to investors through diverse investment vehicles Exchange-traded funds (ETFs) Variable insurance funds Financial structures Bank loans Credit arbitrage Opportunistic Real estate Public real estate securities Private direct U.S., Asian, European, global Unit investment trusts (UITs) Customized solutions Delivered in key markets across the globe US Canada UK Continental Europe Asia-Pacific 9 Source: Invesco. Invesco Ltd. AUM is as of September 30, 2011; refer to slide 2 for additional information on AUM. Not all products, materials or services are available to all investors. Offshore products are only available via financial intermediaries and include residency restrictions.
Strength in local markets Canada 33 investment professionals 868 employees in 10 cities Top 10 position in Canadian retail market US 371 investment professionals 2,956 employees in 18 cities U.S. top 10 fund manager 1 Ranked 10 th (out of 272) largest manager of DC assets with nearly $71 billion in AUM 3 Ranked #1 (out of 24) largest manager of REITs in DC plans 4 UK/Europe 164 investment professionals 1,281 employees in 19 cities #1 retail asset manager in the U.K. 2 Global Product Range has 3 rd highest percentage of 4 & 5-star funds among competitors 5 Asia-Pacific 127 investment professionals 544 employees in 11 cities First US joint venture in China currently ranked #1 among 35 JVs Currently rank 3 rd among 63 Chinese equities managers 6 10 1. Source: Invesco and Strategic Insight. All data as of June 30, 2011 2. Invesco, Investment Management Association. All data as of June 30, 2011 3. Pensions & Investments. Ranked by U.S. institutional, tax-exempt assets, in millions, as of Dec. 31, 2010. 4. Pensions & Investments. Ranked by U.S. institutional, tax-exempt assets managed internally for DC plans, in millions, as of Dec. 31, 2010. 5. Morningstar as at 31.05.11 - The data refer to all GPR Funds having a Morningstar Rating, hence excluding all funds without a Morningstar Rating. For example, funds with a track record of less than 3 years do not have a Morningstar Rating. 6. WIND, June 2011. Data is subject to change
REITS delivered to meet client needs across the globe Launched the first actively managed RE ETF in the US (Nov 08) Originally introduced to US institutional and retail markets in 1988 Added to Canadian mutual fund market (Nov 07) Added to offshore fund market (Sep 05) Subadvise open-end fund in Japan onshore market (Sep 04) Real Estate Securities/ REITs Managed from Dallas by Invesco Real Estate; sold globally Team has been managing REITs for over 20 years Offers US, global, global ex-us, and regional variations Oversees $17.8 billion in real estate securities AUM* in aggregate Added to Australian onshore fund market (Oct 09) 11 * Data as of September 30, 2011
Risk parity delivered to meet client needs across the globe Design elements exported to Canada on Intactive mutual funds (Sep 10) Added to US retail market (Jun 09) Originally introduced to US institutional market in 2008 Added to offshore fund market (Sep 09) Risk Parity Strategy Managed from Atlanta by the Invesco Global Asset Allocation team Introduced to the US institutional marketplace in 2008 Currently expanding the approach to a broader set of strategies Raised more than $5 billion in AUM globally to date 12 * Data as of September 30, 2011
Chinese equity delivered to meet client needs across the globe Added to US retail fund market (Mar 06) Added QFII A- share offshore fund (Jun 05) Added to UK onshore fund market (Oct 01) Added to offshore fund market (Jul 92) Added to Japan onshore fund market (Jun 09) Originally introduced to Asia Pacific market in (1992) Chinese Equities Managed from Hong Kong and Shenzhen Introduced to the marketplace in 1992 Approved as QFII manager in 2004; Invesco Great Wall JV formed in 2003 Manage more than $10 billion* in Chinese equity AUM globally 13 * Data as of September 30, 2011
The global opportunity for growth in significant Equity ($253.2 billion) 6% 8% 4% Fixed Income ($146.7 billion) 4% 4% 2% 10% Balanced ($41.5 billion) 6% 3% 21% 56% 26% 49% 81% 16% 5% Alternatives ($83.5 billion) 19% 1% Money Market ($73.6 billion) 1% 2% 2% 5% 7% 11% 3% 66% 84% US Canada United Kingdom Client Domicile Continental Europe Asia Pacific Middle East 14 AUM data as of September 30, 2011 and is subject to change. Refer to slide 2 for additional information on AUM
and is creating additional value for shareholders over the long term (bps) 2006 2007 2008 2009 2010 9 months ended 9/30/11 Invesco 11.6 bps 14.0 bps 11.2 bps 9.1 bps 12.0 bps 12.3 bps Peer Group Median Global Peer Group Median 10.9 bps 10.1 bps 9.9 bps 9.1 bps 10.3 bps 10.4 bps 14.4 bps 15.1 bps 8.8 bps 8.2 bps 10.7 bps 11.3 bps * Net income for Invesco and peer group is adjusted (or as reported) net income divided by average assets under management for the period. Adjusted net income is a non-gaap financial measure. A reconciliation of Invesco s adjusted net income for the periods presented can be found in the appendix of this presentation. Peer group includes Franklin Resources (BEN), BlackRock Inc. (BLK), Legg Mason (LM), T. Rowe Price (TROW), Janus Capital Group (JNS), Federated Investors (FII), Waddell and Reed (WDR), Calamos (CLMS), Alliance Bernstein (AB), Eaton Vance (EV), Affiliated Managers Group (AMG), and Schroder's (SDR-LN) 15 Global peer group includes Franklin Resources (BEN), BlackRock Inc.(BLK), Legg Mason (LM), Alliance Bernstein (AB) and Schroder s (SDR-LN)
Bank of America/Merrill Lynch Banking and Financial Services Conference Appendix
Reconciliation of non-gaap to US GAAP ($ millions) 2006 2007 2008 2009 2010 Nine-months ended 9/30/2011 Net income attributable to common shareholders, US GAAP basis 482.7 673.6 481.7 322.5 465.7 527.4 Transaction and integration charges, net of tax - - - 8.9 103.1 14.8 Amortization of acquisition-related prepaid compensation - 25.0 20.0 20.0 20.0 15.0 Change in contingent consideration estimates, net of tax - - - - (2.5) (10.8) Amortization of other intangibles, net of tax 9.8 11.7 13.0 12.3 27.4 32.7 Deferred compensation plan market valuation changes and - - - - (5.3) 5.7 dividend income less compensation expense, net of tax Deferred income taxes on intangible assets 7.2 7.9 12.4 14.4 21.1 20.7 Consolidation of investment products - - - - (6.8) (18.3) European infrastructure, net of tax - - - - - 10.0 Other reconciling items - - - - 17.0 (6.1) Adjusted net income 499.7 718.2 527.1 378.1 639.7 591.1 Average shares outstanding, diluted Diluted EPS Adjusted EPS*** 406.1 $1.19 $1.23 411.9 $1.64 $1.74 399.1 $1.21 $1.32 423.6 $0.76 $0.89 463.2 $1.01 $1.38 466.8 $1.13 $1.27 Average AUM (billions) $430.7 $511.7 $468.9 $415.8 $532.3 $638.5 17
Important Information The opinions expressed are those of Mr. Flanagan, are based upon current market conditions and are subject to change without notice. This presentation is for informational purposes only. This is not to be construed as an off to buy or sell any financial instruments and should not be relied upon as the sole factor in an investment making decision. As with all investments, there are associated inherent risks. Please obtain and review all financial material carefully before investing. This presentation does no form part of any prospectus. While great care has been taken to ensure that the information contained herein is accurate, no responsibility can be accepted for any errors, mistakes, or omissions or for any action taken in reliance thereon. Asset management services are provided by Invesco in accordance with appropriate local legislation and regulations. For additional information, contact the Invesco representative in your local jurisdiction 18