Invesco Ltd at Barclays Global Financial Services Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Benjamin Budish - Barclays Services Corp - Analyst : Maybe just to kick it off, can we start with your latest observations in the marketplace. How is investor appetite trended since the heavy volatility we saw earlier in the year. How flows look more recently? Your AUM release came out this morning.

Question: Benjamin Budish - Barclays Services Corp - Analyst : A bit out of time, but what's sort of your latest observation? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 09, 2025 / 11:30AM, IVZ.N - Invesco Ltd at Barclays Global Financial Services Conference

Question: Benjamin Budish - Barclays Services Corp - Analyst : Great. Maybe looking at a couple of the things you've done over the past year or two, the MassMutual preferred redemption, the QQQ fee structure change. Just curious from a high level before we kind of dig in a little bit more deeply, how else are you thinking about creating value at Invesco?

Question: Benjamin Budish - Barclays Services Corp - Analyst : You mentioned the IntelliFlo sale. Just curious if you could unpack that one a little bit. What was the rationale there?

Question: Benjamin Budish - Barclays Services Corp - Analyst : A lot of helpful details. Maybe just sticking on the topic of capital management. So MassMutual, you repurchased $1 billion of the preferred, you're going to be paying down your term loans over time. What are your capital priorities, otherwise? How do you think about appetite capacity for M&A? What else is sort of top of mind?

Question: Benjamin Budish - Barclays Services Corp - Analyst : We'll certainly come back to the Barings partnership. But maybe some other recent news you kind of alluded to earlier, you recently filed to make some fee structure changes to your flagship QQQ ETF. Can you talk a bit about the background why now? And a management fee for Invesco, lower fees for investors seems like a pretty easy win-win. What are the other maybe remaining hurdles that need to be overcome?

Question: Benjamin Budish - Barclays Services Corp - Analyst : Maybe staying on the subject of ETFs, can you talk about the current lineup of active ETFs? I think as of last quarter, you had 31. What sort of strategies you're seeing the greater success? What does the pipeline look like for more products? And maybe high level, how do you think about active asset management here? Does it makes sense to kind of clone prior mutual funds, generate new active strategies, come up with sort of new things, funds that use derivatives to generate income? How do you think about the approach? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 09, 2025 / 11:30AM, IVZ.N - Invesco Ltd at Barclays Global Financial Services Conference

Question: Benjamin Budish - Barclays Services Corp - Analyst : Speaking of active, ETFs being increasingly adopted, but active equity mutual funds have been across the industry trending the opposite direction for some time. You guys recently announced some management consolidation here among some other changes. What is Invesco doing to try to buck the trend? And maybe more broadly, Andrew, what are your thoughts on sort of the future of active versus passive?

Question: Benjamin Budish - Barclays Services Corp - Analyst : It's a good segue into the private side, which you mentioned. Maybe before we talk about Barings, curious on the real estate side. So in your wealth channel, you've been showing some solid inflows to INCREF. I'm curious, what would you say is going well here? It seems like most non-traded REITs, in particular, are not having that sort of kind of success. So what's going well for Invesco? And maybe can you give us an update on where you are in terms of distribution, how many wirehouse platforms, where else are you selling the product?

Question: Benjamin Budish - Barclays Services Corp - Analyst : We've mentioned the Barings partnership kind of in passing a few times. So maybe let's talk about that one a little bit, that was announced earlier this year. Talk about the arrangement. What does each party bring to the table? What are your sort of 12, 18-month expectations? And how are you thinking about potential future product creation opportunities?

Question: Benjamin Budish - Barclays Services Corp - Analyst : Maybe one last question on the private markets topic. So private asset utilization, the 401(k) channel, is one of the hot topics recently. How do you see Invesco positioned for that opportunity?

Question: Benjamin Budish - Barclays Services Corp - Analyst : Okay. Maybe switching topics, your international business. So in Q2 and early this morning, you called out positive flows outside the US in Q2, EMEA and APAC. Maybe just unpack that a little bit, what's going well there? How do you see the broader trend playing out?

Question: Benjamin Budish - Barclays Services Corp - Analyst : And what's the appetite like for domestic versus international assets? Earlier in the year that was sort of a big theme coming out of a lot of the new tariff news. There's going to be a shift in preference for local in Europe and Asia. Are we still seeing that? Has that played out?

Question: Benjamin Budish - Barclays Services Corp - Analyst : Got it. And maybe moving to China and APAC, starting with China. Can you give us an update there? It looked like the asset levels look pretty solid in August, you mentioned before, you're seeing kind of a pickup in demand, kind of an update on the latest there.

Question: Benjamin Budish - Barclays Services Corp - Analyst : Great. And can you talk a bit about some of your other key Asian markets? You mentioned Japan. You've been there a very long time. Same kind of question, what are the key drivers in that country? What does the local appetite look like? What's the latest? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 09, 2025 / 11:30AM, IVZ.N - Invesco Ltd at Barclays Global Financial Services Conference

Question: Benjamin Budish - Barclays Services Corp - Analyst : Maybe pivoting to fixed income. So Fed cuts seem increasingly likely and likely just around the corner. So what's your latest thinking on how investor appetite for fixed income may evolve.

Question: Benjamin Budish - Barclays Services Corp - Analyst : I was going to ask Allison if there's any color you have on the P&L implications of movement from shorter duration to money market assets to long-duration fixed income, how should investors think about that impact?

Question: Benjamin Budish - Barclays Services Corp - Analyst : Maybe switching gears again. You mentioned earlier in our chat, Invesco is currently transitioning its equities platform over to State Street Alpha. Can you give us an update on where you are in that integration. Maybe talk a little bit about the longer-term benefits, how you hope to drive?

Question: Benjamin Budish - Barclays Services Corp - Analyst : Curious, so maybe just unpacking that a little bit. I was going to ask, Allison, you talked a lot about simplifying the structure, raising the company's margins. This is part of that. I was going to ask what else can be done? Like where else is there space to become more efficient? Andrew, you also mentioned new technologies. Curious how you're thinking about utilization of AI, either internally to make things more efficient, to improve the investing process. A couple of questions in there.

Question: Benjamin Budish - Barclays Services Corp - Analyst : Maybe one final question here, just talking about new technologies. I'm curious your thoughts on blockchain tokenization. You guys do a few things there. Yesterday, Nasdaq was here, they had a press release in the morning talking about an application they had filed to list tokenized versions of equities. So how do you think about opportunities there, either in terms of product creation, like ETFs, in terms of back-end like fund management, they use stablecoins to settle transactions, kind of a lot of different angles there, but how are you thinking about opportunities?

Question: Benjamin Budish - Barclays Services Corp - Analyst : Got it. With that, we're nearly out of time, but we'll leave it there. Andrew, Allison, thanks so much for being here. It was a pleasure to having you.