ATLANTA, June 30, 2016 /PRNewswire/ -- Invesco Ltd. (NYSE:
IVZ) today reported long-term net flow information for its EMEA
business to provide greater transparency to the market in light of
the recent UK Referendum (see table, below). Additionally,
long-term net flows for Invesco Ltd. from June 1 through June 29, 2016, were positive at
$1.3 billion.
|
Total daily long-term
net flows for EMEA*
($s in
millions)
|
Thursday, June 23,
2016
|
$137
|
Friday, June 24,
2016
|
($228)
|
Monday, June 27,
2016
|
($32)
|
Tuesday, June 28,
2016
|
$20
|
Wednesday, June 29,
2016
|
$27
|
*Daily flow data are estimated amounts; actual flows are
subject to confirmation and may vary from these estimated
amounts. For each day, the estimated amount includes
estimated retail flows (1) through the midday NAV valuation time on
such day and (2) from and after such midday NAV valuation time the
immediately preceding day.
"Clients and investors across the UK and Continental Europe have
reacted thoughtfully to the current market volatility," said
Martin L. Flanagan, president and
CEO of Invesco Ltd. "Long-term net flow activity over the
past few days has been consistent with what we've seen in other
volatile markets, but not exceptional. Clients are taking
advantage of the market's movement by utilizing the full range of
Invesco's comprehensive fund range to achieve their investment
objectives.
"Even though the UK has voted to leave the European Union,
clients across EMEA will continue to need investment advice as
governments and the markets work through the implications of the
vote. The market that comprises the UK and Continental Europe
is one of the world's largest and, even with currency fluctuations
and market volatility, will remain dynamic and highly
attractive.
"Invesco provides a comprehensive range of capabilities –
including equities and fixed income (domestic and global), balanced
and alternative strategies – managed by experienced investment
teams located across the globe and delivered locally by client
relationship teams on the ground in the UK and Continental Europe
to meet local investor needs.
"Our clients are located in a variety of countries across the UK
and Continental Europe, and Invesco's people and our fund ranges
are organized to meet their needs – a key competitive advantage for
the firm. Our client relationship teams are locally based –
generally, UK client relationship teams are based in the UK and
serve clients in the UK, while Continental European client
relationship teams are deployed across the Continent serving
clients on the Continent.
"The UK vote to leave the EU has no impact on our ability to
continue to offer our products in their respective markets.
For example, we have separate fund ranges that are sold to clients
in the UK (UK-domiciled ICVCs) and Continental Europe (Luxembourg-domiciled SICAVs and Ireland-domiciled unit trusts). We've
been organized for many years in this manner to meet client needs
in this market.
"The largest impact to asset managers will be felt in NAV/FX
declines from markets. In 2015 Invesco generated
approximately 21% and 14% of its net revenue1 in the UK
and Continental Europe, respectively. As we've noted
previously, Invesco has hedged 75% of our GBP-based operating
income for each quarter through March
31, 2017. This hedge is in the form of put option
contracts set at a strike level of $1.4355 based on the average daily foreign
exchange rate for the applicable time period. The gains
derived from these hedges would help offset the impact on earnings
per share resulting from a decline in the GBP.
"In the current market environment, clients and investors are
seeking a range of investment capabilities that meet their needs,
and Invesco's well-diversified range of capabilities positions us
very well to help them meet their long-term investment
objectives."
Accelerated share repurchase
Reflecting confidence in the fundamentals of its business over
the long term, the company intends to take advantage of the current
price of Invesco shares by executing an accelerated share
repurchase program.
As part of the previously announced Board-approved share
repurchase program, the company intends to enter into an
accelerated share repurchase agreement with Morgan Stanley &
Co. LLC to repurchase $150 million of
the company's outstanding common stock (the "ASR"). The
company expects to receive an initial delivery of shares on
July 1, 2016, based on the closing
price on June 30, 2016. The
total number of shares that the company will repurchase under the
ASR will be determined upon final settlement based generally on the
volume-weighted average price of the company's common stock during
the repurchase period. Final settlement of the ASR is
expected to occur no later than third quarter of 2016.
About Invesco Ltd.
Invesco Ltd. is an independent investment management firm
dedicated to delivering an investment experience that helps people
get more out of life. NYSE: IVZ; www.invesco.com.
1 Net revenue is a non-GAAP financial measure
calculated for Invesco Ltd. as US GAAP operating revenues adjusted
for the proportional share of revenues, net of third-party
distribution expenses, from joint venture investments, third party
distribution, service and advisory expenses and the impact of
consolidated investment products.
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SOURCE Invesco Ltd.