Invesco Ltd at Goldman Sachs U.S. Financial Services Conference Transcript

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

Question: Alexander Blostein - Goldman Sachs Group Inc - Analyst : So first, I would love to start by talking a little more on organic growth and really the nice momentum you guys have seen over recent years, really driven by obviously flows into your ETF franchise, that's been powerful. Active equities continue to be a little bit of a drag, but hopefully that's starting to normalize a bit as well. So looking across the breadth of products that you guys have out there, where are you focusing your resources in terms of driving organic growth further as you look into 2026 and beyond?

Question: Alexander Blostein - Goldman Sachs Group Inc - Analyst : Great. All right. Well, lots to cover there. Got lots to cover. So why don't we start to unpack some of this? First, let's talk about the Qs. Obviously, a very important development for you guys announced several months ago. Maybe give us a mark-to-market on where you are in the process with the fee change. Obviously, we saw some headlines a few days ago earlier or last week, I guess, at this point. The deadline has been, I guess, extended. So where are you now? How close you are to finalize in this process? And I guess more importantly, aside from the financial impact that that's going to have just on the P&L of the business, any other knock-on effects we could think about from this transition for the franchise?

Question: Alexander Blostein - Goldman Sachs Group Inc - Analyst : Great. And the easiest way to stop the phone call and stop the mailing is just to vote.

Question: Alexander Blostein - Goldman Sachs Group Inc - Analyst : Yeah. Public service announcement. Okay. All right. Let's talk a little bit about private markets. You mentioned that is obviously one of the key pillars you guys are focused on as far as the firm's organic growth goes over the next several years. Obviously, a big focus, not just for you but really for the whole industry. Talk just a little bit about the plans to expand your footprint here. You have a number of different solutions here, real estate being one of them. It feels like the momentum in private real estate is starting to show some green shoots and starting to get a little bit better. So talk to us about how you envision growth in the liquid parts of your alt-private market solution expanding over the last year.

Question: Alexander Blostein - Goldman Sachs Group Inc - Analyst : Yeah. Let's maybe dig into that a little bit more, both with respect to the partnership and the products you guys are designing with Barings, as well as announcement with LGT and the two new strategies that you mentioned you guys will be launching in '26. Just help us understand, I guess, what capabilities Invesco brings to these relationships? Obviously, you have a very broad distribution footprint and we've seen other alternative managers who wanted to partner with traditional firms really to tap into that sales force. But help me understand a little more like how the economics the commercial model looks like with these products for you guys?

Question: Alexander Blostein - Goldman Sachs Group Inc - Analyst : Got it. Okay. Makes sense. And that will be a combination of both Invesco's liquid capabilities as well as private capabilities underneath that -- LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 09, 2025 / 8:40PM, IVZ.N - Invesco Ltd at Goldman Sachs U.S. Financial Services Conference

Question: Alexander Blostein - Goldman Sachs Group Inc - Analyst : So these are not like hybrid funds?

Question: Alexander Blostein - Goldman Sachs Group Inc - Analyst : Okay. Thanks for clarifying that. Okay. Cool. Let's talk about some of the other products. Let's talk about fundamental at least for a couple of minutes. Obviously, that's been a challenging area for the space from a growth perspective for quite some time. You guys recently announced a number of realignments to that business. Maybe give us an update on how you position this business on a go-forward basis. Any flow implications from some of the changes you've made? And ultimately, are there any savings we should be thinking about related to that business on the back of the change in that?

Question: Alexander Blostein - Goldman Sachs Group Inc - Analyst : Yeah. And it sounds like the good news is that global equities as a category, particularly outside the US from outside US investors are starting to get a little bit of momentum. I mean, it resonates again with your comments around Europe financial as well.

Question: Alexander Blostein - Goldman Sachs Group Inc - Analyst : Yeah. Great. Let's talk about non-US a little more, just zoning on China, obviously, an important segment for you guys, over $125 billion in assets. It's been a notable differentiator for investment for quite some time. Also seeing accelerating growth recently, which has been obviously a welcome move. Maybe help us understand what are the key fundamental trends you're seeing on the ground in that market and your expectations for future organic growth in that part of the business?

Question: Alexander Blostein - Goldman Sachs Group Inc - Analyst : Got it. Great. Okay. Andrew, one of the other growth initiatives you talked about earlier on is fixed income, just leaning into again the income-oriented part of the structure. You guys made a lot of progress there. I mean, I can think about your offering over the last couple of years, and I know it's been an initiative. It's great to see the flows that you've been delivering over the last 12 months or so. Talk to us a little bit about how you guys are positioned for maybe some of the eventual rotation into fixed income assets. It's starting to happen finally but presumably with lower interest rates, there's more to go. How are your position with strategies have the right track record in place correctly and really have enough capacity to pick up a more sizable chunk of those?

Question: Alexander Blostein - Goldman Sachs Group Inc - Analyst : Look, still obviously clear a lot of cash on the sidelines for sure. Okay. Why don't we get it to a couple of P&L dynamics. Just talk about expenses and margin for a couple of minutes off. And I think this one is probably for you. So when we zoom out, expenses have been really well managed in the last several years now, despite the fact that revenues have obviously been improving both from beta and organic growth. So that's been really encouraging to see. What, in your view, is longer-term philosophy around expense growth? Maybe perhaps the breakdown between fixed versus variable and how that might evolve over time? And then I guess, looking a bit closer into 2026, you also have a couple of divestitures that are going to impact both the margins and the expense growth. So I know there's a lot packed in there, and we can help by double-click on a few of these things. LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 09, 2025 / 8:40PM, IVZ.N - Invesco Ltd at Goldman Sachs U.S. Financial Services Conference So however you want to take it, but that's the general direction of --

Question: Alexander Blostein - Goldman Sachs Group Inc - Analyst : Yeah. If you think about that fixed expense base because that's where you were really trying to both reinvest but also reengineer and find efficiencies. What inning do you think we're in there, right? I mean it feels like -- and it sounds like it's a continuing journey for you guys. And is the goal to go and get this to say, hey, look, this is going to be like a 2%, 3%, 4%? What is the sweet spot for that fixed expense base to grow over time for Invesco? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 09, 2025 / 8:40PM, IVZ.N - Invesco Ltd at Goldman Sachs U.S. Financial Services Conference

Question: Alexander Blostein - Goldman Sachs Group Inc - Analyst : That's great. Awesome. All right. Let's move on to capital and balance sheet for the next couple of minutes. That's been also really another great part of the story for the last few years with a little bit more from this morning on the announcements of the pref redemptions. So why don't we spend a couple of minutes on that? A, maybe discuss what you guys have announced this morning, timing around that would be helpful as well. And then secondly, as you look forward, maybe help us outline capital priorities now that the prep has been redeemed to a substantial amount, plus you guys have reintroduced the buyback, where does the capital return priority sits from here?

Question: Alexander Blostein - Goldman Sachs Group Inc - Analyst : That's great. No, it's definitely great to see. Why don't we talk about M&A little bit? Obviously, you stabilized the balance sheet or improving really the balance sheet. Capacity there has been important as we've seen for the last couple of years. You guys really weren't involved in really much M&A for the last several years for the right reasons I would argue. Given where you are today, given some of the momentum you're seeing in the business, particularly within the oil franchise, how do we think about M&A? How important it is, how critical is to grow over the next few years? Or should we be thinking about more of these similar type of partnerships as opposed to full out acquisitions as the way to branch out into newer things?

Question: Alexander Blostein - Goldman Sachs Group Inc - Analyst : Yeah. Great. Look, with a couple of bit stuff on the clock, maybe zooming out a little bit. We talked about a lot of things. Andrew, would love to get your thoughts on the 2026 priorities. Again, you guys have accomplished a lot. '25 in particular, if you like, has been a really phenomenal year for the --

Question: Alexander Blostein - Goldman Sachs Group Inc - Analyst : On multiple fronts. So if you deliver in '26, where you did in '25, I'm not sure too many people will complain. But what's top of mind for you for next year?

Question: Alexander Blostein - Goldman Sachs Group Inc - Analyst : Yeah. Well, lots to do on that list still, but we're excited to watch you guys continue to execute. So thank you for joining. Thank you for sharing your thoughts for us. Appreciate it.