Invesco Ltd Q2 2025 Earnings Call Transcript

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

Question: Bill Katz - Cowen and Company LLC - Analyst : Okay. Thank you very much for taking the questions this morning. Maybe picking up on the QQQs, just a couple of questions that are embedded in my first question. Maybe why now? Obviously, it's been around for quite a while. Looks like the marketing spend is going to be down versus the prior payout. So how do you think about flows on the other side? And then maybe the biggest part of the question for me is the 4 basis points, about what we figured out as well. How do we think about the incremental margin? In other words, would you look to let that all drop to the bottom line, or would you look to spend some of that back for growth and could you quantify what that might look like? Thank you.

Question: Alexander Blostein - Goldman Sachs Group Inc - Analyst : Hi. Good morning. Thank you for the question. Another one around the Qs and appreciate you guys might be limited relative to what's in a proxy, but curious how you're thinking about the licensing fee of 8 basis points relative to other rates that are out there in the market. How durable do you think that's going to be and ultimately, do you see room for that to be negotiated lower at some point in time in the future?

Question: Patrick Davitt - Bernstein Autonomous LLP - Analyst : Good morning. Thanks, guys. One more I'll try on the Qs. There's been some reporting that the, I guess, roadblock to doing this in the past was a view that it was too tough to round up a quorum for the votes. So do you now think it would be easier to get that quorum for some reason? I'll leave it there and then ask my follow-up.

Question: Patrick Davitt - Bernstein Autonomous LLP - Analyst : Yeah. Okay. And then, as a follow-up, will you now be able to also generate sec lending revenue on top of that net 4 bps?

Question: Benjamin Budish - Barclays Services Corp - Analyst : Hi. Good morning, and thank you for taking the question. Maybe following up on some of your earlier comments on M&A, just curious how you think about the missing pieces in the private market suite and how you think about your capacity. I mean, I think there's a view that to sort of achieve scale quickly, it requires maybe a bigger check. So how are you thinking about what may be missing, and how quickly could you scale up some of those capabilities in sort of the near term? Thank you.

Question: Brian Bedell - Deutsche Bank AG - Analyst : Great. Thanks. Good morning, folks. Maybe just one housekeeping and then one longer-term question. The housekeeping, back to the QQQs, to the licensing expense to Nasdaq and the administrative expense to Bank of New York, just to clarify, do those both go into the third-party distribution and servicing expense line?

Question: Brian Bedell - Deutsche Bank AG - Analyst : Okay. It does include the marketing as well. Okay, so the 14 basis points. So then your net revenue yield is a clean 4 bps, depending on where you choose to deal with the marketing, I guess.

Question: Brian Bedell - Deutsche Bank AG - Analyst : Okay. Got it. And then the longer-term question is just on the 401(k) market, private -- the potential adoption for private markets products. Maybe if you can talk about how you view your position there, what is your strategy, and I guess just thoughts on timing. There's a lot of obviously different viewpoints on to what extent other things have to happen to get plan sponsors to be more comfortable with these products, maybe just your views on that. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JULY 22, 2025 / 1:00PM, IVZ.N - Q2 2025 Invesco Ltd Earnings Call

Question: Kenneth Worthington - JPMorgan Chase & Co - Analyst : Hi, good morning. Thanks for taking the questions. So first, you're a big cash manager through money funds and stable value. There's been a lot of talk about digital dollars, including stablecoin, and digital money market funds. Do you think digital dollars changes cash management? And how might Invesco fit into cash management in increasingly a digital dollar world?

Question: Kenneth Worthington - JPMorgan Chase & Co - Analyst : Okay. Great. And then just a little one, it looks like compensation fell quite a bit in the China JV this quarter. Maybe what happened there, and is this the good run rate or was 2Q more of a one-off?