AI interpretation based on checked source excerpts. Issuer assertions and evidence limitations remain explicit.
Policy quality-scores-2: six equally weighted categories. The overall score requires full coverage. Missing inputs are not zero. Qualitative grades are sourced interpretations, not probabilities. 5/6 · 18/10/2026
Moat31
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
structural advantage · 1/4 · Broad product inflows and distribution demonstrate a relevant franchise, but successful entry and relatively low barriers leave structural protection weak. Management's capability claim does not prove an enduring advantage.
durability · 1/4 · Short termination periods, immediate retail withdrawal rights and continuing fee pressure weaken durability. Recent organic growth is favorable but does not establish long-term protection.
customer dependency · 1/4 · Contracts generally permit termination within thirty days or less, and customers can withdraw or reduce assets quickly. No offsetting operational dependency or material switching friction is demonstrated.
erosion resilience · 2/4 · Strong organic inflows and increased operating income show adaptation to demand shifts, while declining revenue yield and ongoing fee pressure demonstrate erosion. This is mixed resilience, not evidence of a moat.
Pricing power38
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
realized pricing · 1/4 · Net revenue yield excluding performance fees declined from 23.4 to 22.7 basis points, partly reflecting lower-yield product demand. QQQ improved company monetization while lowering investor fees. These observed outcomes indicate weak aggregate pricing power rather than demonstrated fee increases.
retention · 2/4 · Positive net long-term inflows across many products provide indirect evidence of continuing aggregate demand, balanced against easy contractual exit. Net flows combine subscriptions and redemptions; they do not establish a customer retention rate or repeat demand by cohort.
margin resilience · 2/4 · First-half operating income increased from $491.5 million to $697.4 million, and expenses fell relative to operating revenues despite lower net revenue yield. QQQ conversion and favorable AUM levels limit attribution to pricing, while imperfect expense flexibility leaves downside exposure. No stress-period durability is established.
contractual freedom · 1/4 · Short termination rights and rapid withdrawal materially constrain the ability to impose unfavorable pricing or terms without risking assets. The passages do not disclose unilateral repricing rights or contractual fee escalators.
Predictability83
Five consecutive annual periods. Equal weights: nondeclining revenue frequency; revenue-growth volatility (5–40pp); positive FCF frequency; FCF-margin volatility (3–20pp). Stability indicator, not a growth forecast.
- Nondeclining revenue years (%)
- 50.00
- Revenue growth volatility (pp)
- 7.64
- Positive FCF years (%)
- 100.00
- FCF margin volatility (pp)
- 4.97
Financial strength—
Missing required inputs: currentRatioGrade. Equal-weight grades: debt/FCF (1–8x), net debt/earnings before interest and tax (0–5x), interest service (1–12x), current ratio (0.75–2x). Earnings use reported operating income, or reported pretax profit plus reported interest expense when operating income is unavailable. Interest service uses earnings/interest expense; if unavailable, it uses reported operating cash flow/cash interest paid, without relabeling cash paid as accrued expense. Nonpositive cash flow/earnings score 0 for their service component; reported zero interest with a positive numerator scores 100. Net cash scores 100 for net leverage. Missing disclosures remain unavailable. General nonfinancial-company rubric, not a credit rating; exceptional and nonoperating gains are not normalized out. IFRS finance-cost and cash-flow classifications retain their reported scope.
- debtFcfGrade
- 96.19
- netDebtEbitGrade
- 0.00
- interestCoverageGrade
- 0.00
- Debt / FCF (x)
- 1.27
- Interest coverage (x)
- -8.43
Capital allocation50
Three-year equal-weight indicators: pretax return on average invested capital (0–25%; equity + debt − cash, each year and its prior year), share-count growth (0–5%, lower better), share-based cost/revenue (2–20%, lower better), consolidated FCF/net income (0–1x). Return uses reported operating income or, if unavailable, EBIT calculated from reported pretax profit plus reported interest expense; exceptional/nonoperating gains are not normalized out. Share-based cost uses the reported cash-flow add-back or, if absent, separately reported recognized compensation expense; the latter never becomes an FCF adjustment. Nonpositive net income scores 0 for cash conversion; absent income/FCF stays unavailable. Nonpositive invested capital has no defined return and remains unavailable. Does not establish acquisition quality or buyback timing.
- 3-year pre-tax operating return (%)
- -0.70
- 3-year average dilution (%)
- -0.36
- 3-year average SBC / revenue (%)
- 1.66
- cashConversionGrade
- 0.00
Management56
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
capital discipline · 2/4 · Actual common repurchases and preferred-capital reduction demonstrate capital actions, but retiring $1.5 billion of preferred stock cost $1.74 billion. Claimed full EPS benefits depend on repayment of associated debt; increased purchase commitments and revolving borrowings temper the assessment. Available cash-flow and return evidence cannot establish superior allocation.
incentive alignment · 2/4 · The disclosed program uses performance-based equity, relative TSR and three-year average adjusted operating margin, and actual 2025 CEO compensation includes substantial equity. Cash and time-based awards remain material, and adjusted-margin incentives do not themselves establish capital-return discipline. Executive holdings and realized vesting outcomes are missing.
execution · 3/4 · Reported 6% organic growth, broad product inflows, completed QQQ monetization and subsequent fee growth demonstrate strong recent execution. The completed Canadian sale adds concrete implementation evidence. Attribution relies partly on indirect operating results, and the record does not establish exceptional durability.
governance · 2/4 · Disclosed compensation-committee responsibilities and an independent consultant provide oversight mechanisms. Concentrated common and preferred ownership with board representation creates a governance consideration without proving abuse. The April proxy described removal only for cause and proposed broader removal rights; approval and final terms are not established by the supplied passages.
Evidence
Schlossberg’s leadership. Overall assets under management increased 17.5% over the prior year to a record high of almost $2.2 trillion generating $81.2 billion in net long-term inflows with 6% organic growth.
2025 key achievements: AUM, net long-term inflows and organic growth · Filed 02/04/2026
Nearly 40 products each generated at least $1.0 billion in net long-term inflows, reflecting the diversity and breadth of our product offering.
2025 key achievements: breadth of product inflows · Filed 02/04/2026
Dedicated sales forces deliver our investment strategies through a variety of vehicles that meet the needs of retail and institutional clients.
Business: distribution channels and dedicated sales forces · Filed 24/02/2026
Investment Management Capabilities We believe that the proven strength of our distinct and globally located investment teams and their well-defined investment disciplines and risk management approaches provide us with a competitive advantage.
Business: management's claimed investment-capability advantage · Filed 24/02/2026
Investment management contracts are generally terminable upon thirty or fewer days' notice.
Management contracts: termination notice · Filed 24/02/2026
Typically, retail investors may withdraw their funds at any time without prior notice and institutional clients may elect to terminate their relationship with investment managers or reduce the aggregate amount of AUM with very short notice periods.
Management contracts: retail withdrawals and institutional termination · Filed 24/02/2026
There are relatively few barriers to entry by new investment management firms, and the successful efforts of new entrants around the world have also resulted in increased competition.
Competition: entry barriers and successful new entrants · Filed 24/02/2026
We continue to face market pressures regarding fee levels in many products, including low fee, passively managed products that compete with our actively managed products.
Competition: continuing fee pressure and passive alternatives · Filed 24/02/2026
As a result, net revenue yield excluding performance fees declined to 22.7 bps for the six months ended June 30, 2026 from 23.4 bps for the six months ended June 30, 2025.
MD&A: first-half 2026 net revenue yield excluding performance fees · Filed 04/08/2026
As secular shifts in client demand continue, our broad set of investment capabilities have allowed us to capture evolving client product preferences, including products that have lower net revenue yields.
MD&A: client preferences and lower-yield product mix · Filed 04/08/2026
In addition, the modernization of the Invesco QQQ Trust converted over $400 billion of AUM into long-term revenue-earning AUM while lowering fees for shareholders.
CEO letter: QQQ conversion, revenue-earning AUM and lower investor fees · Filed 02/04/2026
Excluding the impact of foreign exchange movements, Investment management fees increased by $615.6 million primarily driven by QQQ’s investment management fees following its conversion to an open-end fund ETF and higher average AUM.
MD&A: investment management fee growth drivers excluding foreign exchange · Filed 04/08/2026
Condensed Consolidated Statements of Income (Unaudited) Three months ended June 30, Six months ended June 30, (in millions, except per common share data) 2026 2025 2026 2025 Operating revenues: Investment management fees $ 1,461.8 $ 1,100.9 $ 2,844.0 $ 2,201.2 Service and distribution fees 309.9 363.8 611.7 734.7 Performance fees 3.7 2.6 15.0 6.1 Other 50.2 48.2 99.4 102.7 Total operating revenues 1,825.6 1,515.5 3,570.1 3,044.7 Operating expenses: Third-party distribution, service and advisory 627.1 500.7 1,228.5 1,009.7 Employee compensation 546.7 510.4 1,059.4 975.0 Marketing 36.7 23.1 74.1 40.1 Property, office and technology 109.3 118.2 213.9 232.1 General and administrative 133.5 139.2 280.6 276.5 Amortization of intangible assets 8.1 9.7 16.2 19.8 Total operating expenses 1,461.4 1,301.3 2,872.7 2,553.2 Operating income 364.2 214.2 697.4 491.5 Other income/(expense): Equity in earnings of unconsolidated affiliates 35.1 25.0 69.1 44.6 Interest and dividend income 9.9 10.5 19.1 21.8 Interest expense (23.6) (20.7) (47.9) (33.8) Other gains/(losses), net 105.8 59.7 105.4 35.4 Other income/(expense) of CIP, net (36.0) (14.3) (87.5) 59.8 Income before income taxes 455.4 274.4 755.6 619.3 Income tax provision (116.5) (77.0) (197.6) (154.6) Net income 338.9 197.4 558.0 464.7 Net (income)/loss attributable to noncontrolling interests in consolidated entities 43.4 6.0 92.9 (31.0) Dividends declared on preferred shares (37.0) (56.6) (75.2) (115.8) Cost of preferred share repurchase — (159.3) — (159.3) Net income/(loss) attributable to Invesco Ltd.
Unaudited consolidated income statement: first-half 2026 and 2025 results · Filed 04/08/2026
(in millions) Three months ended June 30, 2026 % of Total Operating Expenses % of Total Operating Revenues Three months ended June 30, 2025 % of Total Operating Expenses % of Total Operating Revenues Third-party distribution, service and advisory $ 627.1 42.9 % 34.4 % $ 500.7 38.5 % 33.0 % Employee compensation 546.7 37.4 % 29.9 % 510.4 39.2 % 33.7 % Marketing 36.7 2.5 % 2.0 % 23.1 1.8 % 1.5 % Property, office and technology 109.3 7.5 % 6.0 % 118.2 9.1 % 7.8 % General and administrative 133.5 9.1 % 7.3 % 139.2 10.7 % 9.2 % Amortization of intangibles 8.1 0.6 % 0.4 % 9.7 0.7 % 0.7 % Total operating expenses $ 1,461.4 100.0 % 80.0 % $ 1,301.3 100.0 % 85.9 % (in millions) Six months ended June 30, 2026 % of Total Operating Expenses % of Total Operating Revenues Six months ended June 30, 2025 % of Total Operating Expenses % of Total Operating Revenues Third-party distribution, service and advisory $ 1,228.5 42.8 % 34.4 % $ 1,009.7 39.5 % 33.2 % Employee compensation 1,059.4 36.9 % 29.7 % 975.0 38.2 % 32.0 % Marketing 74.1 2.6 % 2.1 % 40.1 1.6 % 1.3 % Property, office and technology 213.9 7.4 % 6.0 % 232.1 9.1 % 7.6 % General and administrative 280.6 9.8 % 7.9 % 276.5 10.8 % 9.1 % Amortization of intangibles 16.2 0.5 % 0.5 % 19.8 0.8 % 0.7 % Total operating expenses $ 2,872.7 100.0 % 80.6 % $ 2,553.2 100.0 % 83.9 % During the three months ended June 30, 2026, Operating expenses increased $160.1 million compared to the three months ended June 30, 2025.
MD&A: comparative expenses and expense-to-revenue ratios · Filed 04/08/2026
Certain expenses, including distribution and compensation expenses, may not vary in proportion with the changes in the market value of AUM.
Market risk: expense sensitivity to AUM changes · Filed 04/08/2026
Preferred Stock Repurchase During 2025, the company repurchased $1.5 billion of the $4.0 billion outstanding Series A Preferred Stock held by MassMutual for $1.74 billion.
Capital management: preferred-stock repurchase consideration · Filed 24/02/2026
Common Share Repurchase Plan During 2025, the company repurchased 5.4 million shares for $100.4 million in the open market as compared to 2.9 million shares for $49.6 million during 2024.
Capital management: actual common-share repurchases · Filed 24/02/2026
As of December 31, 2025, the company's purchase obligations totaled $1,015.2 million (December 31, 2024: $694.4 million) and primarily reflect standard service contracts for portfolio, market data, office-related services, and third-party marketing and promotional services.
Contractual obligations: purchase commitments at year-end 2025 and 2024 · Filed 24/02/2026
As of June 30, 2026, the interest rates on 24.1% of the company’s borrowings were fixed for a weighted average period of 17.43 years, and the company had a $736.0 million balance on its Revolving Credit Agreement.
Interest-rate risk: borrowing exposure and revolving-credit balance · Filed 04/08/2026
• The $1.5 billion of preferred stock repurchased in 2025 is expected to generate a $0.20 EPS benefit once the associated debt to fund the repurchases is repaid.
Executive achievements: preferred repurchase benefit conditional on debt repayment · Filed 02/04/2026
Performance-based equity awards. 50% or more of equity awards are performance-based.
Executive compensation: performance-based share of equity awards · Filed 02/04/2026
PSU program design. Our performance-based equity awards utilizes relative TSR and three-year average AOM.
Executive compensation: relative TSR and three-year average adjusted operating margin · Filed 02/04/2026
Base salary $750 Annual incentive award - Cash $5,321 Annual time-based equity $4,967 Annual performance-based equity $7,450 Total annual incentive compensation $17,738 2025 annual incentive target $13,750 Total annual incentive compensation as a % of 2025 incentive target 129% Total annual compensation $18,488 For 2026, the Committee approved an increase to Mr.
CEO compensation: disclosed 2025 cash and equity awards · Filed 02/04/2026
Role of the independent compensation consultant The committee has engaged Johnson Associates, an independent consulting firm, to advise it on non-executive director and executive compensation matters.
Compensation governance: independent compensation consultant · Filed 02/04/2026
FOR Recommendation of the Board of Directors The Board of Directors unanimously recommends a vote “FOR” the appointment of the Bye-Laws PROPOSAL 4: Amendment of company’s Fourth Amended and Restated Bye-Laws to allow shareholders to remove a director with or without cause The company’s Fourth Amended and Restated Bye-Laws provide that a director may be removed only for cause.
Proposal 4: existing director-removal restriction and proposed amendment · Filed 02/04/2026
RELATED PARTIES MassMutual owns approximately 18.4% of the common stock of the company and owns substantially all of the outstanding $2.5 billion in perpetual, non-cumulative preferred shares as of June 30, 2026.
Related parties: MassMutual common and preferred ownership · Filed 04/08/2026
Based on the level of shares owned by MassMutual and the corresponding customary minority shareholder rights, which includes representation on Invesco’s Board of Directors, the company considers MassMutual a related party.
Related parties: MassMutual minority rights and board representation · Filed 04/08/2026
The peer group reflects companies that align with our operating model, geographic reach and provide an appropriate industry comparison for measuring long-term relative performance.
Compensation peer-group selection: operating-model and industry comparison · Filed 02/04/2026
PSU relative TSR peer group1,2 • AllianceBernstein • Bank of NY Mellon • State Street • Artisan Partners • BlackRock • T.
Compensation: relative-TSR peer group · Filed 02/04/2026
Rowe Price • Amundi • Franklin Resources • Affiliated Managers Group • Lazard Role of the compensation committee The committee’s responsibilities include: • reviewing and making recommendations to the Board about the company’s overall compensation philosophy; • approving the company-wide incentive pool; • evaluating the performance of, and setting the compensation for, the CEO; and • overseeing management’s annual process for evaluating the performance of, and approving the compensation for, each of the other executive officers.
Compensation: continuation of peer group and committee responsibilities · Filed 02/04/2026
(8) Canadian sale and restructuring: In the second quarter of 2026, the company removed the net benefit arising from the sale of the management agreements associated with Invesco's Canadian fund business to CI Global Asset Management on June 1, 2026 and the restructuring of the company’s Canadian operations.
Non-GAAP reconciliation notes: completed Canadian management-agreement sale and restructuring · Filed 04/08/2026
