IVZ - Earnings call transcript Q4 2018

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Unidentified Company Representative

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, geopolitical events and their potential impact on the company, 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 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. and to to on described carefully most Form not and forward-looking in investors filed recent you XX-Q urge consider XX-K caution rely SEC. any unduly statements the with We the forms subsequent the risk

reports the inaccurate. You update later website at obligation in turns forward-looking statements any public out the www.sec.gov.We may from SEC's be disclaim expressly obtain any any to these information to disclosure if

Operator

listen-only have participants to until Invesco's is Results Quarter session. be Instructions] the at mode Welcome you a [Operator Conference Call. question-and-answer disconnect will being in All time. recorded, any Fourth Today's may this conference if objections you

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

Martin Flanagan

very Thank if that so inclined much you us. on joining website. thank we'll is Again, you everybody you're addressing the that and presentation for be

So follow please if to. feel you'd like free to

potential in an financials. investment like. the - we'll for going combination. business investment we Oppenheimer talk on what on will And go will quarter are combined look look where Loren greater then the And investment the update environment fourth finally, results but about also highlights, the the give the go through is and to firm our Greg also today. So details cover I'll with also the

and all on XXXX. there's on asset their worst were Eight no ten challenging fourth market five, out companies that record the us. territory in of highlights the It's were is to for listed for page negative classes turning in and So very question XX% territories. quarter industry decades, the of

million generally during our these net many absolutely, by It further of quarter the our the than I'd capabilities period a indicator, of much during did risk performance of understood The with stock impact $X.X by will to that's number up, the a That's at And again announced program And we market the with marketplace. a mentioned, October. the key more of just health impacted dynamics nice a we've during was by bias value stock minute. purchased Loren and had again, good news quarter. those around under we relative if from billion dynamics. results, fourth time. that these investors were the last So immune world. was buyback you look in market gross have flows financials not get I that but we into say the big $XXX in quarter, move sales were off driven difficult We investment a

fourth they're we're in and to been talked very, Oppenheimer revisit we've point we As I financial on quarter that the million work returns will the second a in see synergies market. close towards few of opportunities do our year you'll the the a more we make this the greatly track with Oppenheimer. meaningful and making we accelerate to an in $XXX difficult because over is to of are have about, will we being still. the actively are past with previous question progress very combination, the activities. And hit years, hitting want talk so repositioning and that minutes. the about the of quarter compelling specifically what think And part we'll no There's important company few this our of

to. want And that Loren, you with so

Loren Starr

Marty. much, you Thank Yes. very

of And in XXXX. managed year going performance significant the one bit top about presentation. So We going that XX%. and XX% to dropped improvement numbers the on summary the see while into the five to later a see half did to peers bit a little and slide is you're actively assets quarter. in a results of the for fourth three XX% six, over the Greg in were and talk year periods, of December

in gross market that continue and performance a to about, level. redemptions. billion prior to talked the of up set significantly institutional redemptions The of the income dynamics While adjusted operating quarter revenue quarter, XX% some operating for $XXX were million buybacks. just did down million lower and Total net million capital Adjusted We through near-term nearly outflows $XXX also the the quarter, XX% Martin than which was of versus net in client million results sales quarter. number environment the the margin, decreased to the quarter, impacted small at from $XXX for $XXX long-term this quarter. our prior were higher larger dividends $XX.X XX.X% normal challenges returned are of contributing a from million $XXX prior during to shareholders

flows at now on long-term page So the look found let's seven.

U.S. For October UK investment some faced associated for a by Active and elevated redemption performance actively experienced single a were products, outflows, equity strategies QX. we managed outflows This handful true flows billion with also in impacted retail mandate in our example fee particularly a was $X.X client. for institutional which headwinds. of remained low

XXX Our shares, and we ultra-short passive ETFs. mixed somewhat quarter, in flows European were saw low good also into S&P duration sales bullet our the volatility

benefited results than products, at account to of inflows while wall great market bullet negative $X added it in The from single flows you real money ETF. quarter. to these we was sales were gross flow shares equity billion XX% strong in nearly billion our strength into into institutional quantitative gross this don't fee stable value, QX. billion income well versus year our fixed like pipeline offset The and senior and from that of diversified by up flows than reflected outflow was $X.X The that due estate outflow our $X.X of naturally end strength I'd territory. previously charts our from sales mentioned I billion more loan and products. also maturing However was low net see JV us more on which our led in negative $X.X as in drove note the

or assets reflects the our by decreased X.X negative management $XXX returns which billion Next, slide market and under points, turning eight, impact of percentage outflows. long-term to

yield Our net AUM down primarily decline was basis higher the real other impact and which points was revenues. XX.X This performances offset mix, market transaction fees an points. driven count excluding of to by was estate our day negative fees X.X basis by the revenue end on and partially increase in FX

integration where on related before slide the turning be to to U.S. But quarter. item by restructuring non-GAAP restructuring operating financials transaction on line expenses. includes quarter is integration My costs move our line item provide costs. for want will acquisitions, a today slide results, This our highlight Let's I XX. and to those related to expense named for nine, as on as U.S. transaction variances adjusted GAAP we can new found item our focus related which one GAAP results well and comments measures, the

that amounts You same period presentation. Oppenheimer prior a net non-GAAP income has might did has expenses or this reclassified the remember we The also acquisition the revenues, we fact that And when and annual to period optimization no basis. on the a presentation business finally, the reclassification deal like total the given deal. on absolutely Kampen use approach the on GAAP combinations with to size consistent size Van or impact line and that of adjusted in operating given been note to current I would total be operating of

average or just million net me non-GAAP quarter-over-quarter primarily higher X.X% let revenues $XX.X million. decrease for for AUM results partially now $XX.X performances XX see that investment So quarter, our page decreased European estate turn primarily This offset earned by a from our the to lower real our and reflects you'll teams. by to

at or a which launches quarter. million The $XX seasonally on marketing X.X% relative our million $XX.X increase increased focused were share of offerings operating new and $XXX.X expense was in third our UK, to including driven efforts ETF on by in higher million expenses, by bullet focus adjusted Our the ETF expenses quarter-over-quarter fund U.S. Europe products. about the

QX costs run digital saw also million $X back services. that's about credit was by higher These platforms about increases expense. finally in we $XX professional that offset recognized partially We G&A variable million costs then less our the quarter. And from there as outsourcing expense our VAT non-recurring in as well large $X services with and were compensation associated a office - million third of rate of administrative expense administration outsource a in in

investments the decreased during income to $XX.X million non-operating the compared adjusted seed our mark Our on the quarter. largely quarter market third to negative reflecting

for the us adjusted impact margin the firm's effective mark from resulting that increased terms to operating And losses. EPS the of of to these percentage of $X.XX tax primarily of XX.X our points adjusted net to our XX%, market In unrealized brings and quarter. rate

turning just XX. slide Next, to

of of you say on the joins Clearly represent roughly combined So Invesco a we know that Oppenheimer expense XX%. let in as me reduction. that QX base firms will year, the plan by spending when significant reducing this total

are given extreme revenue operating we environment our our volatility with number However, integration to been efforts control impact approach results, we experiencing, consistent implementing continue we're negative immediate historical that should currently limit These like the help we're to that through focus measures of challenging a cost to the efforts. manage we've when the seeing. on while

all professional training Some canceling service when travel of as possible, slew limiting include as open and spend assessing discretionary hiring, requisitions opportunities. additional other areas of for of conferences, actions deferring new other non-client well expenses, these the

on So of the will combined minutes. we is that, in turn the in plan synergies are it to with addition a to to working detail upon firms be over And and accelerate that going hard covered the the many I'm to few synergies of we Oppenheimer activities, greater close. in also Greg. the that topic This mentioned delivering

Greg McGreevey

Loren. couple the I'd much, cover just to very set stage. like key you of Thank a to topics today There's that

context, and improvement. look want investment And as performance. long-term on to color provide I investment Invesco for some standalone early within of some signs that firm First, cover at we'll a our performance

OppenheimerFunds. Second, want outcomes our highlight enable I'll us combination of we the excited will how we'll the to we're I finally, of believe about. the our through expansion benefits something provide with clients very And better with OppenheimerFunds addition and highlight to that to achieve that's capabilities significant

five five chart turn at peer as referenced and Loren his So a And in take year our this performance earlier on half slide, months. one, this and Favorably group. performance peers what's look if you quick speaks aware a actively we'll of overall. on remarks, XX% can three performance slide remained managed XX, entire that just strong and year shows In despite total long-term we relative challenging for of remained the overall basis you're total, long-term Marty top slide, past relative actively the the with basis, of our peers on top which see, market not referenced, investment can has to firm. our managed under management quartile which our our XX five XX% conditions our you assets reflection in capabilities of a all And our year had of a in to our our as quality the peer assets strong on performance assets teams. our for to over of the to

So early the of let's in to performance. to next look investment signs at slide our turn improvement

slide the look one not at active growth was XXXX you which If benefit should momentum, for fueled and management. market and XXXX XX, by much of

team producing strong belief investment is through our stayed market the alpha critical cycles. Our repeatable that reflecting course, discipline to

while at in number a seeing performance investment of results, it's areas. you improvement days, look significant recent still early we're As

So touch provide couple let me a of points.

our portion the the of XX%, year improved total a in significant last of hand this of seen performance slide, end of November top upper mutual left the January U.S. in half show middle also funds the to mutual performance the basis, On to one this from fund of of we groups peer U.S. XX% We've the of largest our improvements year. year trailing assets. that's in On

in the several the relative As challenge, have one as right for rankings flow hand that greatest highlighted improvement peer of this important, slide. experienced we're year seeing strategies on material the portion

markets percentile income from one moving true to their from UK XX teams improvement to international moving year moving to moving to XX XX was on percentile from staying percentile percentile; from approach. percentile percentile this and a philosophy XX and to developing XX basis; percentile XX XX percentile. achieved by growth Again, Specifically, diversified XX income investment

up our of short-term for Now, continuation encouraged weeks believe in that, would trend that experience not us recognize a we we while in we're the improvement of early this nature months. is six coming a which flow by the performance, necessarily better set

it's Invesco can with over the ever Let of been situated on transaction, me more investment on next slide now will world investment and cycle. the upon closing teams turn relative perspective. produce clients an strong class the slide to capabilities with XX, OppenheimerFunds that better combination comprehensive to be than a market a And from array complete serve performance

we'll believe the clients long-term two, with have a investment across of post-closing. investment following complimentary in that more stable to better deeper better positioned needs drive globe sources enhanced different we the Specifically, benefits alpha organization; to investment to results; have and client channels. greater provide will be and three, and have capabilities align One, stronger

I to now wanted these Touching be and first XX. global that together as a would equity, high organization. Oppenheimer more will investment asset markets international and their So detail we alpha categories in brings cover of emerging that on and It's these separate class teams equities. the like demand off world high potential better points importance. points on very three given clear slide

the slide. the access the and to relevance fund retail capital intermediaries we to critical looking scale we is afford us important access combination to mutual market, will channel can be deal markets, from is which greater exposure. and seen will of hand enhances partner significantly platform think obtaining greater access portion U.S. increased with size scale in clients. our and flow, As this firms. research which this This The right also as to greater within provide fewer believe firm are And and

turn if So now slide can we to XX.

stable styles records, As performance performance strong stronger earlier, complimentary the assertion. on produce Oppenheimer the chart improves in very basis. and marketplace. mentioned that page history and a And capabilities more position combined investment combined suggests our our this on supports will brings investment Moreover track which

you wanted backdrop So a give on of to just I bit little it.

the at would of average peer XX% three and our or were made Invesco more look for the the this improved XX% the would over retail And the you been have Oppenheimer under of standalone assets since the results firms the having of for group for performance in if the combined for of time batting half threshold rolling time top XX% even standalone, If year performance of management for have standalone firm. combined XXXX, the XX% the similar shown higher. time firm U.S.

when versa. is means firms perspective correlated Z Invesco's performance driving vice Oppenheimer's and transaction the home point, this from time us that is performance the by the So has two the between often for performance Indicated A fact inversely and is through XXXX. And of cycle. to since combined positions majority what vast the this full stronger investment performance products with the our solutions better been promote

of XX. relevance turn expansion to portfolios global now represents opportunity on unique and specifically, strategies final my our meet better of a this our needs to as the me enable this provide solutions the us with product-by-product enhanced partnership product let in will to with our investment So massive slide think leveraging across uncorrelated and of us all-weather greater a in outcome having our with customize needs for network deepen to better to will retail an And alpha We that within clients. clients capabilities basis. to improve sources addition and varied more having to the our a distribution suite suite channels. discussed, section both across institutional will of by us globe. And leading diverse our set product of meet the we our increase the clients ability on And capabilities clients oriented

not created, globally. about the and positive this clients will we it this, could on excited all our impact with the have So of be combination because opportunities more

the turn Marty. So to I'm now going back call over to

Martin Flanagan

Greg. Thanks,

minute let spend put and me update to pick about talking So of and context earlier. in I'll talked about on an what I set, to there up turn if level you a a Oppenheimer page just XX,

been last where the growth is ETFs, client repositioning see investing same have need, over done in are leadership industry we've the and We aggressively think this And the we we time strengthening of digital going focusing China, by areas while at rapid clients business et factors, and markets, cetera. number on positions years, the in platforms, where our core going. where

about that's organizations. framework create and we market where you get do minute, about combining it scale about better served the that. that of accelerate number all for as this complexity, rationalization talked of think high growth us used We're largest channel get it of eliminating very, and we focusing wealth the in work. this. it but combination unique is that the competitive actually we about Yes we've the is to those this importantly, world in the actually it's expanded to with that put the like. and it obvious, greater in of talked execute let's pool a of want we assets very in important, I'll a and build the the that U.S. I on most in MassMutual areas the resources and client well. our really opportunity It a quite greater but in home we drive frankly relationship see and this And will in operating generate relevant location matters talked throughout an point to You and before And it's particular, to Oppenheimer enormously. Oppenheimer being leverage the leadership in using in by can well detail management and position with context quite to But it very also the strengthen I light know in the past, optimization, very ability that business you save two platforms the Oppenheimer, does the greater past. money, the these going will Clearly,

quarter, it's of lot quite update I and exciting want got an during done to during lot on where in both and a have thank an you good the give been things quarter everybody awful happening. been organizations me let So the are we

So we transaction. know close. foundational and that gating the opportunities. to The market that actively to you targets then about us the achieve initially do very engaged the think comments investment a close, and in be a now. the And place, stronger the and is element very million proxies be do Trustees to have the Oppenheimer a coming filed fund confident feeling confirming The highlight target of we'll happen there the program with important talented way. strong stronger part special the clear also of also But of making one. we that about no key synergy a have want out more for feel retention SEC the Board MassMutual is becomes Greg's feel in was that partnership quarter combine highly which are confident be future catalyst have been They artfully we start are that in value we we're real important to impart I very another as matters organization we've And talked particular, that that that described complementary business going excited be a A important really finally, very question from transaction by collectively that which is it. that talked and factor point focused initiative $XXX of this with the we happened investment firm. we I some been the OppenheimerFunds I are post organization. reality to teams approved will day it's soon the what the want Greg making reiterate and is culture to of the firm synergy milestone is combine in on a a of team, the something the mutual really about as which an that is initially. in and of during

during again, good So quarter. progress very the

back to back that very, We recap and difficult the turn fourth to wanted Let's the in come quarter. sort of financials financials. of very light

you compelling forma and and expect on it'll I accretion still, assuming very think - a combination pro in look add XXXX that's million three expected but at if $X.XX inclusive $XXX as we've the so what the down you you'll strong time result looked than EPS a points close, basis, stunningly you strong XX% light $X.X again $XXX if EBITDA management at see you of from in the annual IRR the $X.XX add so it look XXXX is announcement, be just year. the billion. at operating half per at remained remains returns under synergies and of if excess run if is the accretion they so that QX XXXX, to And been and of in of you of the share have be assets million margin XX% of XX/XX/XXXX, an we'll percentage market through. and more EBITDA we extremely the for look QX rate When will we combined of

light quarter in dramatically than again, a stronger So compelling say to financial very firm very, are of very shareholders to being a returns the prior of transaction. fourth nothing difficult the just to

the spend And let's on various emerging. opportunities for XX little time go out synergies. are a greater in the categories laid detail that So on we've a more the page

plans have heading execution, addressing execution which moving place and such common towards closing the We of and many product key plan. and in overlap infrastructure consolidating areas to support through distribution, consolidating as robust functions in technology are platforms, in

synergies from. areas we right where are emerging So the and coming well see the now these underway

our Some activities experiences. reasons to close permitting not of day accelerate will client us get of this very frankly will important and be part start other done of due post to or mitigating time one ahead a regulatory by

with and of these for the and to our strengthen very reduce along while of is don't of people helping organization us a strategy, advantage it. organization, often on the reduced scale. this and down our benefits further and and opportunities them Those combined decisions All identifying very taking refine organization, shareholders operational ultimately. talented the in stronger continue activities location of drive we're are clients And further unique reiterate, cost opportunity complexity gaining this the materially to group one to want heads do I come

well will and framework approach fact very that much a want get and again the the target synergy close. we I be make the a to of past have high and just that has to a I We our serviced organization point stronger post degree confidence in ability using are the

let questions. to recap up before me So sort up we of open

all last that XXXX, we've talked straight not as nine that case to about various net the the As prior year negative had years styles market you and was of and know, the our we positive with of approaches. inflows dynamics

in are continue and want driving reiterate further point, Post investment the scale demand Greg We market an Invesco invest disappointed we'll close, with will and continues think management, very to client strong outflows, the the growth combination client be where we to compelling to continuing comes clients the degree those net and I are. putting business great these and is in in of Oppenheimer it our under made strengthen but serve organization. a to our progress efforts, to financial to high made provide have position grow firm with And we've we'll for approximately territory. our in That for repositioning the trillion assets of confidence where teams trading $X.X a us evolve. opportunities and accelerate relevance in yes, we the returns said, as have in our and ahead shareholders. performance

answer any I I are Greg that, anybody Loren, and happy have. will Operator? with So to questions may and stop

Operator

question Ken Worthington [Operator Instructions] is Our open. Mr. with is from line Worthington, first JPMorgan. your

Ken Worthington

questions. my taking for you thank and morning Good Hi.

guess of there why pivot when And seasonality able there XQ, other XQ conditions in to the or but in better realized how cost go weak in such your was you into expenses, any your of Loren, marketing as run for market given lastly, program And weren't and or expenses? non-comp the we earlier XQ cutting pull then, on the of is I market were in then expenses, actual prepaying quarter? the forwards much XXXX as into rate from clearly XQ? both expenses in savings from started efficiency general First XXXX maybe maybe XQ sort

Loren Starr

lot marketing well of related the of of to a advance in let's So were expenses Ken, expenses, probably say fourth planned the quarter. being terms in in

have these are been scheduled these So product are that to. of committed launches, events and sort

near-term of Obviously, we isn't but unusually could really levels marketing pull the management on into expense it dial of that parts challenging really market of as generally think. say consideration. we as flexibility did, sort expense marketing there So taken I we QX, move got you was high would be million around much might about of back expense. the as would not what enough call what run should the sort rate to of that there's $XX I time But into more

like a any probably of for QX think which QX. into G&A by nothing should there QX some about would of forward terms true us. what pulled was from pull as expenses, forward, particularly $X rate I In no, well, million the Again, of around one-time mentioned run considered numbers cost look higher I've was were punctuated that as be in terms

the track terms of feel optimization. on we're In terms like cutting, the we cost in of absolutely

terms maybe to I total at rate a so little that of expense savings, in the going QX. achieving And think level, we in of are still run goal bit happen

Ken Worthington

asset manager. preferred some of that your the balance $X.X levered investors the And characterize this feedback as what suggests are deleveraging a you. just billion thank seems post about sheet it take for dead thoughts on With once the like thus your Oppenheimer? in getting mind, the buybacks you're priorities is that commitment over highly as Invesco priority see Oppenheimer, Okay, post - are And complete? the does cash and thoughts

Loren Starr

Great question.

accelerating that discussed. to the further And to that within XXXX two still opposed as the clearly delay billion the $X.X some of do to part that to but but part into feel billion we upfront something year are we clearly, little of economics. sensitive it we're do of think $X.X is believe do I I the originally leverage we a complete as of bit we in more timeframe need the we as the So intending it, may part this transaction,

say true We still markets impact, right to per the might that are again. want say have billion. are, at deliver now the schedule. it's it. sort we're I going to be downturn, to Markets leverage to think very don't immutable - to clearly I it's will we blind billion some another going of ratio, we're looking want we $X.X But took about where it comfortable completing we If really $X.X feel don't

Ken Worthington

you. Thank

Operator

Mr. you, for Worthington question. Thank your

with comes line next Siegenthaler is open. from question Suisse. Our Credit Sir, your Craig

Craig Siegenthaler

expense on Loren. OppenheimerFunds you to the XX, a office. include just there categories? in are is And Invesco of the lot overlap provide redundancies, Marty. back update to you that can $XXX businesses. But in two million I morning, the potential us I on is same slide back and the merge Good of this to come between focused wanted didn't an know product which mostly the

just So update here. an wanted

Martin Flanagan

Yes.

And again, those normal as decisions. unique and will our a So the we of not come will reasons. I'm again, it's some product after than we at various turn areas There's probably that for practice close to give and to for just at regulatory rationalization. be to transaction. it look is you that shelf you Again, back say sure you there's less I until imagine will opportunity attention But to close, that that. Oppenheimer in just we And opportunity, after insights. wouldn't I overlap make one going there our is look

a could give in I wish but we that. can not position clear a I we're update, just more where you So, do

Craig Siegenthaler

follow up my business. the ETF then And is on

year what positioned us can bank in ETF, the view the loss? really of sort give quarter. of some to for But the a the or of how that in but business organically You the last ETF XXXX large and ETFs And future? in loan business in you're participate your know through terms And both didn't also, you share growth build migration I M&A. in fourth happened was on

Martin Flanagan

where a feel launches placed. by things be a look year points And well we you're to some will dollars utilizing us. And of where done I right. this will at self-indexing was. said, I like look of from think we're And Yes, think be think as the position this been to of of us Guggenheim the make continue had look year. We The if we bullet And shares. do where unit - started lot to back again think moving were if very important where just we'll we where final has grow. you some that we undertaking lineup what a we at we for in our on are, important build we you good and we very last think of and the the QX very be the end we

life, So, those what - that's are of bank comes with in market. [indiscernible] loans that other part

Craig Siegenthaler

Marty. you, Thank

Operator

your you Siegenthaler. Thank for Mr. question

Bank Our Michael with America. from question is next Carrier of

Your line is open.

Michael Carrier

one maybe Loren, you. guys. Thanks, for first

Oppenheimer the environmental commentary around throughout your like the given from say year. and Just it synergies expenses more separating

about rate? Just a run bit like granularity to maybe quarter wanted maybe relative like the you're to say more how Invesco get core base on thinking fourth little forward expense going the

Loren Starr

absolutely, Yes, Mike.

giving think, run I I was points rate versus So, you some one-time. sort of around

basis. in $XX there's my on in nature let's onetime to million of a mind, say So specific recur in say roughly I'd and sort won't related more QX that, events were of regular expense elevated that

of the say go out you to were forward certainly take number. to that to flat our will that QX QX I So numbers, down, if down into be would

at that we be QX QX confident is number to level wise one-time run in going feel versus we into lower ex-those a So things. where rate very that are

Michael Carrier

maybe And one… thanks. Okay,

Loren Starr

want to Marty think, Wait, Michael, just add… I

Martin Flanagan

I of the Yes, your really But And is very, get do I very to responsible done. we're combination that out take and turning environment. And that this this organization this matters. There U.S. costs side want able being stronger an One pivot put is to you around like full and from a the operating in coming to you forced very, few organizations create largely going through to what are side, QX. by fact in very world. opportunities understand, if very I is literally few organization think the again, the attention is - where going can XX%

beyond again, conversation we I really when Oppenheimer. attracted material us highlight is it's actual benefits and of capabilities real. And QX as you they So at the scale everybody the that are it's said fact. the look sort that But really for think

Michael Carrier

just Okay, growth flow the that's organic helpful. And outlook. or Marty, then, on the

for tough everyone. fourth quarter clearly So was

I elevated you some quarter think had guys in third the outflows.

kind stabilizing or were looking XXXX of could of sales the on markets you guys to you're surprising to the some pointed seeing with the more you're to at rebound. to want trajectory some that redemptions unusual were versus what your things start more things around. the Just maybe when traction turn some investment get perspective Where maybe slow you're of that performance where hopeful most of

Martin Flanagan

Yes.

organization year put because in serve let if me we've make you value class us look built if asset a the the had. and thing So of that context, and capabilities But it geography. up you and we business couldn't again, you we line almost didn't feel up at very diversified by last well by

clearly is by for to there. sterling quite X.XX you and funds EMEA real dropped year that impacted largely U.S. they proxy think if Brexit a business. happened mutual XX% at look But that the fund peak I the as literally from us just mutual in and saw saw a X.XX. you a You what use a dropped topic flows

will wars So, I capabilities so had capabilities - point risk then and got happened you and nothing our I that. went you that in at mean really tell We off. terminated good equity Asian very can trade look people there's there. some clients during the well

just have So trade I Brexit. thought as organization I for again, the like excuse, Invesco. not add that. we're the and are And importantly, an if that if It's seeing Greg, for you the an would disproportionately reality. that. and not think, breadth that's could have impacting it's don't a active notion And possible. know markets was about good talking Greg, the management these investment you'd performances depth to of actually capabilities, I saying

Greg McGreevey

factor pretty pipeline of of a income areas kind is before the maybe need we fixed significant too. they The look thing couple of of I'd kind is about increase there of a there's to, starting And I as pockets when our out where one returns. overall at add overall think then talked in that you income need to that clients only pipeline where see kind business when alternative

estate quarter kind fourth a within of loans. to troubled an starting and real interest very we're after starting see of increase to the in within specifically see bank So we're within bank kind overall loans

we've So investment solutions ramped in businesses the up really our there. made given being that

a see come we're so clients. having to with that number engagement out we're things that of of starting And

would of increase. kind pipeline if think you just the I an be look our those seen So areas at we've

Michael Carrier

a thanks lot. Okay,

Operator

Thank Carrier. you your for question Mr.

Dan is Fannon question with next from Jefferies. Our

Your line is open, sir.

Dan Fannon

I Good how talk the kind to I transaction? how from I guys based building know Marty, consultants, clients and us have maybe the changes you your an quarter gave be based you're your quarter outflow may assumption upon Can And of the you guess there's morning. what not just last transaction, kind or of that update Thanks. that hearing think excited of us you you any what or may guess, are deal. integration about about on comments about on intermediaries, last if conservative? you about the and the - on

Martin Flanagan

can to not single positive. I very look speak specific Yes, if every incredibly of my them one was conversation

beyond talked but capabilities if investment So can that platform type all for the together U.S. two of you wealth capabilities. about, is depth it's just investment firms very, those Oppenheimer the what the had right. the very where beyond of of clients serve nothing, capability, strong with fundamental notion of that you positive Greg start the feedback the strength in reasons management It's we've capabilities

is them. to world emerging There are that to actually number also positive. attracted markets, a in already name global equities very very two the clients parts the institutional of very, of So of capabilities different Oppenheimer

we're Oppenheimer us, feedback again, do very together. So but we client just joining can of also what getting good

the So fast get closed. few perspective if can we want next again months those go to our from

Dan Fannon

redemption the deal. the assumption because The on - of

Loren Starr

of in still sort $XX I think conservatism. a completed nothing that's billion outflow assumptions, of after changed again deal is assumption we're in So at of looking terms those XXXX the a degree

mean right people are overhang deal in seeing close. little a now bit the I of on Oppenheimer flows you're as for the some ways I waiting think to

but And so excessive. again nothing sort manageable is good it the to is seems news of it's number, - be that

We we're to redemption are we to feeling very be bring going confident experience firms honesty. together the for both that firms able the quite that once improve

Dan Fannon

Okay.

So closed the obviously announcement also, I and have just us to us things clarify of the of specific in the just couple think on you give your I a outflows markets. what can accretion, you change timing But change, the just think could factor been? Oppenheimer's since update

Loren Starr

numbers. AUM on the both the the year So for terms the first at think impact timing versus which base sort accretion had the we're again, we I and in business, second assumption. three lower quarters also Obviously, of only roughly quarters have of biggest prior be of year the two will change the so we accretion in starting that has a

a of annualized. essentially The market that forth. think outflow terms assumptions Beyond and the are other roughly I so all X% in same Oppenheimer, is the decay for

that bit we've picked just generally of and again, a because surprised the not quarter So fourth it to environment. up little as entered the about be one market

watch to continue we nothing in we're seeing that said terms so flow all pattern I the extreme or there's but So it, as alarming far. of at

Dan Fannon

you. thank Great,

Operator

your Mr. you for question Fannon. Thank

comes Our Citigroup. with Bill question from next Katz

is line sir. open Your

William Katz

Okay, thank much. you very

bit work containment revenue think cost with other words you in side quantify the you maybe had that, would well. other could if I you're relax improve I delayed your release that? as on that your some and potentially in wondering, little maybe mentioned prepared pursuing press some a in you still was remarks And then, is backdrop how some if that? of spending the sticky of to were that

Loren Starr

terms stopping of and lot a that transaction context in of in freezing the that going makes it So, for hiring a occur quarter. us is in I mean, large second of sense the

delayed. really internal affecting of obviously thing of if able But time they discretionary elements they otherwise close what combined the now really in say do. that and or might between to be that, training, the curtail clients bring are then, hires of a really to around we the want And fair development, on of services We can investment sort asking performance number folks company. to I people without bringing are that to sort would any we are the of

in a is cost far together until So just that to based, bigger the of by reduce get of the event way sort we we our reducing impact. be spend can coming firms the it the some the XX% biggest of of of is combined the sort will point where time

at We a just the - to I talked reduce some with there to of sort basis that on permanent we as said term opposed of about. that are mean, longer looking opportunities things cost are

again a things of longer those happening, two take we firms and lot opportunity bringing still be going is do to see together, that. it is that So impacted by to but the

William Katz

Okay.

Just as billion $X.X thanks so part previously the $X mentioned them. up also both billion. EBITDA versus you being question, In follow guidance two forma of a your pro for taking

legacy guess how gave I from the And into much So are the well the if as wondering, was we part any you update of of flows on Oppenheimer new and as at look unpack some quantitative that of But year you both that comes around you could qualitative footprint how or assumptions. the I Oppenheimer? that standalone the of then, will? sort as if Invesco

Loren Starr

really terms really a earnings. just of of our So AUM both firms numbers the of Nothing function in is more is sort EBITDA EBITDA for that what in just reduction lower is unpacking, driving quantitatively lower it's down.

the into sort there's of terms preview in now. we right quarter think the that variability feel of I of a lot think I

monthly We sort releases a sort when of come through. think if glimpses sort of about to we're all of it see as better - quarter. they result three provide the see be will months' we you that talk into hesitant can completed so, and And we as we the will

William Katz

thank very much. Okay, you

Martin Flanagan

Will. thanks, Yes,

Operator

Katz. Thank Mr. you your for question,

Goldman is question Alex Blostein from next Sachs. Your with

line Your open. is

Alex Blostein

guys. morning, good Hey,

go questions, you So run done rate numbers some give revenue things ending couple rate I of guys we're of specific a us already. and Oppenheimer could know just just where these kind the maybe today? AUM through run expense of But

Loren Starr

you, of I number AUM is have the to the have we for that provided. don't I XXX, detail we think Obviously, Alex. that XXX

literally will of think scale you revenue scale with down, I down, again, kind AUM. expect it will the should So,

Alex Blostein

of purchase Got price. the you. And in terms

XX% XXXX provided in bit understand, or But, a that talk $X.XX obviously, conditions lot last you call. So, $X.XX little about to you flows, the room accretion was could a bit. as wondered think if the the any market it relates out it, a worse. something below got the in was flash that there's the price there little I purchase to but negotiate you there Can

Loren Starr

close of or close well client Yes, an there's type I flow, between are adjustment some assets sort as successful mean now in the there - contractual terms to if over of we the related outflows bringing adjustments of aren't the there.

that pretty in. it's to So hurdle a significant kick for

it's at be and percentage least to on run has a it points revenue X.X think rate. done I

that So when is below happens. at and - and the point adjustment

even the anything of know purchase about no want made So concept X Marty, not between renegotiating on talk to X.X a be I don't of adjustment And price. would there you sort if that's to thought.

I think we're continue. contractually and bound happy to

Martin Flanagan

of just your quite going I that financial Look, front And it. compelling. are in returns again, very you after turn you attention a firm of be we're coming out put the dramatically to very, stronger market to difficult

So…

Loren Starr

I markets would say, off I mean, obviously have improved point. that

percentage I we are. rose where of X.X points above think, and sort

just to look January of numbers those coming a light weeks in through. better all of So few going are

Alex Blostein

enough. Okay, Thanks. fair

Operator

Blostein. Mr. your for you question, Thank

Our Brennan UBS. next from question Hawken is with

Your line is open, sir.

Brennan Hawken

morning. Thanks for the Good question. taking

clarify to So asked on just that Alex about. the triggers just

quarter to number, decay the the said to exactly decay It's the post rate, close? that's update to that unpack a X% update the announcement very a announcement - But the decline, us close. you billion is think announcement. $XX at how deal period. the X.X% market while number lot difficult not on fourth to I I billion the attributed And to when a that you come of did what of in versus in $XX or period hard post that seem annualized appreciate is rate, from that

sort it bit some please? a for anticipate of of of little would out just us, close. happening you those Thanks. Can ahead flush that So potentially outflows

Loren Starr

is we're $XX out, So, XXX markets doing the I through assuming flat what billion right. the and taking mean, then this close

it's a before right. it XXX place, happens So it's a happens. essentially of sort same sort not not of when XXX it the But close, becomes refined before if the getting

outflow was deal happened So not kind that that - the happen. a immediate it's - almost when assumed when of it we

flow economics the at right? in the still really of it is work. it's that I economics that's So $XX think deal just happens the for billion looking the less affect that the So that you when those off deal of assumption be should don't fact terms would XXX numbers,

Brennan Hawken

X.X% the you required then And that annualized? Okay. decay that is

Loren Starr

that's so filed is more in decline deal. X.X% run what due you coming I'm complicated was clients rate, the making. through there's a that's can - and one all But purely a at documents look revenue not of there run things, off there it's place the so So details over that the in due rate our two put originally the to of contract little just probably terms

if again, it's around there's just So, it I note details think that, don't know that, to makes… I important

Martin Flanagan

these practice, It's transactions. common a we have

Brennan Hawken

you close. expectations be that a those et then, had between announced you the around an announcement you for you Can cetera and in timing, had to guys your you're had And Okay. indicated and those? initially, repurchase when executing it repurchases update on that us give going

Loren Starr

done I happens So we've to what after to that. stock $XXX $XXX million price. originally the at the still looking obviously then think of We're rest we're had prior said million that $XXX we to done at million close, market; already and the looking being

to also just mean to And we're decisions. So, mindful We're so going the to I all to period, so of blackout are there's repurchase again transact in sorts again, the sort coming stock. and of be leverage able begin our our exiting ratios of forth. elements

of reasonably conservative you close the the to to prior expect. going would sort buyback we're of So around be pace as

Brennan Hawken

Thanks questions. for my taking

Martin Flanagan

Yes, thank you.

Operator

Hawken. Mr. question, your for you Thank

Bedell Brian from is with Deutsche question next Our Bank.

Your line open, is sir.

Brian Bedell

million. cost much. of back more to coming the in Maybe very the Thanks saves Great. just one $XXX the

it that part given you XX% later think the to now And expense XX% over synergy then, to margin to XXXX, those just think clarified, just on you you environment? is saves may that have And trajectory? the conditions? I of the then sort back closer I reaffirm can us think quarter. - the timing the walk - post think AUM actually of give the deal this, can through And from missed accelerate whether and the closing lower of you then, synergy you to is that due whether the office market get down all I Just on second can

Loren Starr

Yes.

you want. if in jump can you Marty So,

Martin Flanagan

on. start, hop Why don't I'll you

Loren Starr

Okay.

mean of we should of talking pushed been expect of So, the has more a that the that because close XXXX, about, so on first the quarter million, that in share - be numbers sort quarter I capturing terms because delayed our just that you timing to going of into $XXX is timing. XX%, synergies XX% of effectively around were getting synergies

of So point. that's one kind

margin, I than think that's due around XX the just being greater in of terms AUM levels. - all XX, XX, to

just associated Again, be that markets that And would we've so respect better firms. in because today impact. of the the lift to with the both seen

very to sensitive of numbers. we'll obviously where at and those we've deal a hopefully sort deal bottom to So see we'll in but more continue upside again are, economic these again, hit economics markets look

Martin Flanagan

Yes. the big are would and undertakings. add, And just the like. platforms I Look, these

job. do meet got a well, doing to to we them do have do good to also we'll them clients, how of possible. do we need Now you got serve history as importantly, it, But know quickly as a your you very we - to

again, back to So the would picture. I come big

We will will very hit frankly $XXX margin hit scale million, important and a do. will we to build about target we for into very opportunity markets the it's we unique organization, which talked as the some us

Brian Bedell

Great.

maybe Is new try would then than handle product you structures them don't sooner teams and think synergy products Okay. expense rather geographically do any Oppenheimer - that new on process management and where those able to have how - growth And the using product that geographies revenue a going that? guess against whether Europe would to timing Is you or into the about something that back get presence. growth some additional - combine the the opportunity, think about into to then, have I rather big going first initiatives and to and those get launch like later you is structures as to growth investment being that your investment a of some you're comments and you this around sacrifice expanding these - also about go spending talent that they about of that? on prefer

Martin Flanagan

is not there. very of Yes, investment beauty combination incremental is spend of much. The I think the the the teams are the quality

it. We There institutional distributional demand is an for have capability.

into determined clients their as So Oppenheimer a range you processes. capability. the already [ph] institutionally range, And that frankly our go getting SECOP those through takes by it pace to it a be time non-U.S. and will it's distribution has appetite. know

MassMutual back revenue I institutional these So to as move anything are just that things or but do and none that to to fine, there's want the of that rapidly. ourselves. going from non-U.S. the pretty again, those or come is there that's come And numbers business will we between no in forward. in synergies business

Brian Bedell

the product teams synergizing just the you timing that, for just doing it first go be Would to on wait expectation kind Is on And or of that product? you of those. Oppenheimer synergies? right would those out combined

Martin Flanagan

about together and already are to will with we other in one. an is expectation firm we opportunities to the are. conversation But conversations going what MassMutual again, the relationship there than in important teams deep what also I front and And don't an what's combined be the want we're set Look, MassMutual us. execute do. But can with of and with what a

Brian Bedell

very Okay, much. great. Thanks

Operator

Thank question you for Bedell. your Mr.

RBC Capital from Markets. with is question next Lee Kenneth Our

Your open, sir. line is

Kenneth Lee

for taking Thanks my Hi. question.

just a OppenheimerFunds. of terms the In the - question on

on call have the that you been over think rates mentioned years. the last last upwards trending few fee I

or a Just or mix just over give up there. down? factors bit color either Thanks. Wonder What the if near-term? that wondering shift push the us little expectation fee could could rate you more what's

Martin Flanagan

can start us. Yes. Loren than it's I'll different Look no and add. maybe

emerging the period organization. those money markets sort again imagine money Our of effective and you happen. see aggressive that of And putting is would successful topic There natural an and international down in that the a had fee what trending equities say et is exact funds, was capabilities. mix during I higher us. and really aggressive shift - off risk quite opposite. people or flow in within you rate it's things for that see you the an fee Oppenheimer cetera shouldn't are it environments, And

There's very mix can those client it. drive demand we So will little shifts. do about

Loren Starr

mean very and say, from is I'd we stable. what their can see, rate Yes, I fee

I though been sort offset continued of market the negative, platform. nothing So in even - that alternative through to they've think has the growth is really

stable. And so, say pretty I'd it's overall

Kenneth Lee

housekeeping. a Got And a of you. bit just one

categories behind located? details you billion Some redemption Thanks. mentioned, LOP that mandate which $X.X were asset those

Loren Starr

was all mostly was a equity single-digit component basis points. income. There of that fixed So bit little

Kenneth Lee

Got you. Very helpful, thanks.

Operator

Thank you for your Mr. question. Lee.

comes Our next Autonomous with Davitt question from Patrick Research.

sir. open, is line Your

Patrick Davitt

expectations deal, announce some of Could was a and you optimism particular, distribution guys initiatives, year Good Gem you. Oppenheimer on around there flow really you're Step lot you been generate be for focus before your XXXX pipes. the focused Oppenheimer, ramped Earlier chatter Thank with walk from a up new some the helpful of on that through guys. forward? that now? little pushed has changed, on but bit or that to to an on morning, flows newer pulled Has out incremental [ph] last it'd you ability as update or stuff getting more in well. Now from get

Loren Starr

Yes.

business to are start into from models. sort of our when production of and we've still largest the along one Gem on second XXXX going is that with we're is quarter capability putting track client So the Step using

So in win a scope for Gem end and into of the flows of coming things from not of we going think into this how are a immediately. to will size of it I out, But immediately think The to still model very to these they're one built we second that using of going I flood XXXX Step client we number and is given the is the the into Again, it's into revenues be that is will begin XXXX. AUM to pipeline revenues of business. they continues as the quarter. sort strong, breadth play see it get material and to and advisors said build, going and

around China it And so production, other time. progressing, is, been capabilities imagined called characterized just these that that in mean takes factor-based that actual of thing our the just is growing quarter. going as thing say to the are originally of as institutional every of growth overall engines would so excited a we said again and just we is of we I ETFs have business, design, the about all than terms but from to execution had have in terms anybody slower I'd possibly the investing, sales percentage

our being important factor an we see So do of as terms success. that increasingly in

talked off we've which for And that the believe investments so will even I we've made, are XXXX. about and paying us into more so

Patrick Davitt

a got quick follow I've up.

bad? mentioned be of could kind out this have everybody to you gauge what earlier April, has But in goes kind And outflows be they there, much it plays much at it of that could as handicap You better if Brexit conversely vital think goes March and done will any to trying happens good? work UK and worse how through decided I business point. to how the if the be

Martin Flanagan

Yes.

- not continent you as I literally the year-over-year you like mentioned it's question. XX% half the has on I good risk but that doing environment Everybody across, at of down just this really business been say Brexit it's - too. our it's really in what for calculations, second So And look UK types it's would And and if imagine. year. the I this those of didn't a year earlier, past mentioned until flows the off is become can't it real I've

be my I this on we're Loren there smarter people and about perspective, you making take decisions. looks outcome, investor sentiment So clients a be it how us. and to table it's We the spend lot I and for it. back no was we the better on if time quarter lot Brexit, with But it, very position different would at a you would happen are know perspective there organization's of positive it. investment if important when talking a than That's what's like at looking in be client Brexit to going imagine to deal don't would off that me getting look think I some will sentiment, a

for The happens us. is negotiations and see we'll between other one that that U.S. what is the a that is a headwind trade China headwind

So anything think is that moves into positive us. positive I manner about for development again

Loren Starr

information. Yes. And maybe of a bit just

just size because using sort number, at through sort outcome, AUM, insurance did the XXXX strategy we've outflow we QX, a the did billion. around used other quarter, And of terms hedging it's the in operating we manageable struck under again Still in uncertainty the number. as income point in equity past for of one, full $X around X.XX the the the of similar UK Brexit that is, hedge big but So of policy. the overall was of

were So the below to policy us would down insurance case drop at would this say if scenario. the worst pound on I X.XX, protect side

just people have XXXX. it through anyway So so know, we

Operator

for your Mr. Davitt. question you Thank

is Lee question KBW. line Robert Our from Sir, your open. comes with

Robert Lee

in thanks the thank this for questions Great, morning. taking guys And your all you. patience

Martin Flanagan

Yes.

Robert Lee

back sorry want everything saves, sure but again to to And I expense maybe go correctly. the I make to understand just

I So, the XXX-ish lower to contribution with - what expectation I number correctly guess, still I'm that EBITDA of an square trying is the kind if I mean of have ultimately accretion.

so kind benefit coming should XXXX of of Am So into some close going simply was of thinking of the maybe you're why leads targeting because but I still that that that's I down. that, XXXX, to be timing that later kind correctly? really and is how thinking it of

Martin Flanagan

No.

want I this. just on really So be clear to

We - I XXXX year. quarters that of based out, having it getting mean Then we two close to full done is a that our place million from So through it on the run that outlined the that XXXX this, $XXX the impact rate and numbers past. expectation And was year how this are market. the we now. to next change of laid do $X.X that billion we've accretion in EBITDA know for the billion $X the programs the right drove in to the only

the of critical. reason is went the we're to than approval that expect at there getting just other don't believe and - have end really And back fund or year mutual on so, track. happened the you was that why through into January - quarter get the we is And

of done. we get a confidence this we'll that again, have So high degree

Robert Lee

finished a in through call from share incremental guidance XXXX? confirm repurchase share to every purchase filling count kind what now basically that you to no million perspective, post $XXX done the just the you're that maybe issue of going And you've the the rest already fit Great. and plus where of between

Loren Starr

let of mean X.X just timing is, Yes, I specifically again your me so question the I or… think

Robert Lee

share cents accretion I is or kind this additional XXXX like issue? Well, of what there plus repurchase we if are baked no you're - of to you you're today of just forma pro think more going in not point XX-ish kind from forward into that

Loren Starr

I it's buyback XXX was pro close and on we're then the prior mean described. as to today, and close. forma the - same it's the what to previously going Yes we after the are XXX exact just rest in to The issue where the year

Robert Lee

you. was guys. great. it, That Okay, Thank

Martin Flanagan

much. very you Thank

Operator

Mr. your for you Lee. question Thank

is Our Harris next with Chris Fargo. from Wells question

line Your open. is

Chris Harris

Hey, you. guys. Thank

highlighting the the on a bit there we Oppenheimer here, And it if or is wonder little assuming about an you're value else then you saying So in performance investing to I Is kind improvement for that mainly that investment talk more. that coming on? value be is if business? the style improved something about can back should potentially of attributable going

Martin Flanagan

the lot a Chris for thanks question. Yes, so

driven things or change kind market. I of think of in the are comments really it the stocks we January. remarks, of I there's a I into through of which think to into when we're December the going lot one kind moved a of big momentum That in that is prepared change driver couple my when on a were going of that changed started really just and mentioned

become it's that period and will environment that for time management. more over continue conducive so And active hopefully much

driver So that you of of of lot it in selection there. will the value stock driving big but really to component was really little contribute could a kind it's kind wasn't if just stock that of was biggest And momentum a changed will that a was if will. that you there if be the specifically component that the would performance growth, bit of performance you

of to your good think In of if we uncorrelated think at going going terms of zag, which the we're selection sources and will. they're about look question mean, second thing highlighted we you part I you to that and kind when a zig really stock is as I

over performance very headline I have of their think a historically value to think run really very we're our trying has specifically So short fallen the our very alpha uncorrelated on. to important not that's necessarily some of of they point performance look that sources back the come fact out more at for the off and what strategies the it, it's little we when you their bit for long in into kind is clients related

Chris Harris

thank it, Got you.

Operator

Thank you for Harris. question Mr. your

Stanley. with from your Our Sir, line is next is question Michael Morgan open. Cyprys

Michael Cyprys

I the morning. - Invesco good and formalized to circle from wanted need Hey, and is will Thanks about and get in with of partnership five just time? just for the back three your say the MassMutual. level have Thank entail, to question. how what how ensure that it Just you. it years' strategic that talk taking patience you Can what you commitment or in does of do how you you terms alignment. you

Martin Flanagan

this is Yes, Marty. Michael,

about be a of long-term good ahead that's interest right that and in very other facts move. the with there then the was alignment we how rather So Oppenheimer going a what and the just management than this relationship I'd right to again, come to interest could range conversations Roger are clear sector. are assuming could to look, marketplace. anything big a in right the of we make difference it broad synergies things of we of get we've core exposure not is They the view now to zero they a And that's and very and the Invesco of the nature business with back them. what are assuming And transaction that revenue asset now wanting together it it their have do from starts business. broadening material

Michael Cyprys

Got it.

here, perspectives hear then, in leverage to such credit ask up funds market I how the of just what's liquidity corporate any cycle just sort playing on given cycle turn the buildup to bond the cycle high present be And funds out? could a this on curious by what if with of sort of I risk liquidity you quickly And just daily the do manage? in done funds into guys risk many to and and going follow credit portion mitigate a in So loan implication that Okay. just the your yield larger industry? such a guess and does as which see you to being of

Martin Flanagan

I and it's closely heart pretty long think looking to question. probably the winded of we're answer a address your So probably very

those seeing things So we - referenced certainly if of you that out will. kind we you are are play

think funds, respond to our fiduciary part will. a the we're dealing within is really to that to able with client main the at liquidity ability that standpoint, I liquidity if be the you looking from

hopefully get perspective in that size I helpful our and to I from a that. is think the referenced to capital kind comment a get kind scale markets and access of I to liquidity and think of capital in markets be the able ability areas like improved

I multifaceted, of are you think when kind the So, talk about implications industry. the

your second of maybe time in stop kind - in the So I'll question. of there kind just raising

Loren Starr

I volatile the markets our of of issues no through sort bank and would say though in saw addressing in we like product terms terms managing absolutely loan of redemptions.

really done it all So issues. was with no

way that the manage that Given product. we

data for probably So relevant again Invesco. certainly point, one one that's but

Michael Cyprys

you. thank Okay,

Operator

your Thank Cyprys. question, Mr. you for

Our Goldman last Sachs. with follow up question Blostein is Alex from a

sir. line open, Your is

Ryan Bailey

for Alex. a standalone Invesco is question on actually Good Loren of This Ryan guess behalf I for expense XXXX. Bailey on the base morning.

synergies. expenses it's standalone then given help be for us some that about where the initiatives current the AUM So you about cost distribution happening should Can deal resetting if at look XXXX was like levels? excluding what for And with billion. ex Invesco we of you think looks outlined $X.X we

Loren Starr

Yes.

that first a looking on when I bit $XXX we're expenses quarter you I sort are million you that quarterly fourth from it So versus of going touched million, are at rate. I talking if in in QX $X sort run said kind subtract the the expenses one-time down was number. into of mean you're we which I was kind about quarter of $XXX little we where - look a out to think of million we're And we the be

so also that which and and - forth, payroll again So go includes first away. tend to quarter taxes

large year is this that's So transaction to about hard obviously little talk plan. sort and it the a again doing because we're the of full

no And XX% business Invesco combined on taking so, there planning close of anymore. we're and post is out standalone the

flat about I the in standalone the say the that So assuming right you run extrapolate provided company. if terms of that thinking guidance you markets I rate us want combined just it's year. really give But across to the view would should just

Ryan Bailey

integration I for just need more amount it. minimum of that can about mentioned of any in. should And just if half expenses first balance the maybe the thinking be the the we cash one sheet just you costs? then on given sneak seasonal What's Got you'd kind and

Loren Starr

not - changed. So our again again has policy capital we

We are capital million requirement perspective in cash in billion by regulatory is $X excess to the driven sort continue needs million $XXX on that to of required targeting capital that what somewhere $XXX rules from of of of in target the largely Europe and balance sheet. is between Europe a and stay

we'd so go target basis. on And billion the have be would of roughly a forward $X.X kind

Ryan Bailey

thank it, very Got much. you

Loren Starr

No problem.

Operator

today's of our over conference I'll to conclude turn does session That our call, not Flanagan. back Martin Q&A

Martin Flanagan

want forward a questions Again in good just to participation soon. with I of Have to speak look and everybody the everybody for day. thank the rest

Operator

does you participating. That thank call. today's conclude all for conference We

day. have may disconnect. And You now great of your rest a

Invesco (IVZ) 30 Jan 192018 Q4 Earnings call transcript