Invesco Ltd Q3 2025 Earnings Call Summary

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

Question: Bill Katz - Cowen and Company LLC - Analyst : Excuse my voice this morning. So maybe on the QQQs, I'm sort of curious if you could maybe put any kind of meat on the bone a little bit around where you are relative to the quorum or the approval rate and the development with the SEC in terms of recategorizing and reclassifying where you're going to account for the marketing spend, does that raise the probability of getting to the required vote to make the shift?

Question: Brennan Hawken - BMO Capital Markets - Analyst : Just a follow-up on Bill's question. I understand that you guys are using a proxy voting firm to help drive participation. I just want to confirm, is that considered a marketing expense of the fund? And is there any sort of spend threshold where over that, it starts to become an operating expense for Invesco?

Question: Brennan Hawken - BMO Capital Markets - Analyst : Got it. Okay. And then this might be a little granular, but I'm going to give it a shot anyway. I understand that there's 3 proposals in the proxy vote. Are all 3 proposals progressing similarly? Or is there any divergence in between 1, 2 or 3?

Question: Alexander Blostein - Goldman Sachs Group Inc - Analyst : I was hoping you could maybe unpack the 2 divestitures you made earlier that you mentioned, both on the Teleflow side as well as the JV in India. Maybe one, with the use of proceeds, obviously, you guys have been deleveraging, and there's more to do there. But maybe talk a little bit about capital return priorities as you look out over the next 12 to 18 months. And then as we start to look out into 2026, what are the implications maybe for expense growth on the back of those divestitures?

Question: Benjamin Budish - Barclays Services Corp - Analyst : Maybe just another follow-up on the expense side. It looks like markets are constructive. Your flow profile has been looking increasingly healthy. If the QQQ vote goes through as it sounds like you're optimistic it does, there's going to be kind of even more flowing to the bottom line. So I guess, maybe just kind of -- again, following up on the last couple of questions. How are you thinking about variable expenses going into '26 and '27? Obviously, there's the ports of pieces you can control. But how are you thinking about opportunities to drive more operating leverage given the -- what looks like a healthy backdrop top line revenues?

Question: Benjamin Budish - Barclays Services Corp - Analyst : Really helpful. Maybe just one separate follow-up if I may. Andrew, I think you addressed one of the questions around credit more broadly. Just curious with the launch of this new fund with MassMutual, any specific feedback on that one? I know there's a healthy component of direct lending in there. And just in terms of distribution, maybe remind us what the sort of rollout looks like, whether it's wires versus RIA, how should we see things start to flow in? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. OCTOBER 28, 2025 / 1:00PM, IVZ.N - Q3 2025 Invesco Ltd Earnings Call

Question: Patrick Davitt - Bernstein Autonomous LLP - Analyst : Another follow-up on the expense question. Sorry if I missed this and all the discussion. But I think non-comp, but particular was still well below expectations in 3Q. So is that a good run rate to think about how things are tracking in 4Q at least?

Question: Patrick Davitt - Bernstein Autonomous LLP - Analyst : Great. And then as a quick broader follow-up, I guess you mentioned a bunch of active ETF launches. Any sense of AUM into those kind of products more coming from existing products or existing wrappers, cannibalizing existing wrappers or do you sense that it's actually new AUM in the system? .

Question: Brian Bedell - Deutsche Bank AG - Analyst : Great. Maybe just write along that -- the last question from Patrick on the ETFs. As you expand those strategies and the move more of that or I should say, as RIAs in particular, adopt the strategies. Are you -- is that moving that factoring into fundamental equity fees?

Question: Patrick Davitt - Bernstein Autonomous LLP - Analyst : Great. And [Audio Gap] Conversion to happen to the P&L, is it right, subsequent to that? Or do we have to get through more approvals and that's beginning of next year?

Question: Kenneth Worthington - JPMorgan Chase & Co - Analyst : Okay. Great. And we so M&A is back in investor dialogue, given Trient offer for Janus as you sort of reflect on Invesco in the industry, where has consolidation been successful and where has it fallen short? And given your balance sheet is strong, your fundamentals are strong, is it a good or a bad time for Invesco to think about M&A to further strengthen your position and kind of get to your strategic priorities more quickly?