Invesco Ltd 10-K (2022-02-18)

For the fiscal year ended December 31, 2021

 

 

Business

 

Introduction

 

Invesco Ltd. (Invesco or the company) is an independent investment management firm dedicated to delivering an investment experience that helps people get more out of life. Our comprehensive range of active, passive and alternative investment capabilities has been constructed over many years to help clients achieve their investment objectives. We draw on this comprehensive range of capabilities to provide customized solutions designed to deliver key outcomes aligned to client needs.

 

align : to arrange something in the correct position, or to be in the correct position, in relation to something else, especially in a straight line / to change something slightly so that it is in the correct relationship to something else

 

 

 

With more than 8,500 employees and an on-the-ground presence in more than 20 countries, Invesco is well positioned to meet the needs of investors across the globe. We have specialized investment teams managing investments across a broad range of asset classes, investment styles and geographies.

 

 

 

For decades, individuals and institutions have viewed Invesco as a trusted partner for a comprehensive set of investment needs. We have a significant presence in the retail and institutional markets within the investment management industry in the Americas, EMEA (Europe, Middle East and Africa) and Asia-Pacific, serving clients in more than 110 countries. As of December 31, 2021, the firm managed approximately $1.6 trillion in assets for investors around the world.

 

 

 

The key drivers of success for Invesco are long-term investment performance, high-quality client service and effective distribution relationships, delivered across a diverse spectrum of investment management capabilities, distribution channels, geographic areas and market exposures. Through our focus on these areas, we seek to deliver better outcomes for clients and generate competitive investment results, positive net flows, increased assets under management (AUM) and associated revenues.

 

 

 

We measure relative investment performance by comparing our investment capabilities to competitors' products, industry benchmarks and client investment objectives. Generally, distributors, investment advisors and consultants take into consideration longer-term investment performance (e.g., three-year and five-year performance) in their selection of investment products and manager recommendations to their clients.

 

 

 

Third-party ratings may also influence client investment decisions. We monitor the quality of client service in a variety of ways, including periodic client satisfaction surveys, analysis of response times and redemption rates, competitive benchmarking of services and feedback from investment consultants.

 

redemption : (formal) the act of saving or state of being saved from the power of evil; the act of redeeming / (finance) the act of exchanging shares for money (= of redeeming them)

 

 

 

Invesco Ltd. is organized under the laws of Bermuda. Our common shares are listed and traded on the New York Stock Exchange under the symbol “IVZ.” We maintain a website at www.invesco.com/corporate. (Information contained on our website shall not be deemed to be part of, or be incorporated into, this document.)  

 

 

 

Strategy

 

The company focuses on four key long-term strategic objectives that are designed to sharpen our focus on client needs, further strengthen our business over time and help ensure our long-term success:

 

 

 

 

As an integrated global investment manager, we are keenly focused on meeting clients' needs and operating effectively and efficiently. We take a unified approach to our business and present our financial statements and other disclosures under the single operating segment “investment management.”

 

integrated : in which many different parts are closely connected and work successfully together / including people from different races, sexes, religions, etc., especially ones who have previously been separated 

 

keenly : in a way that involves strong or deep feelings or awareness / in a way that involves quick understanding

 

disclosure : the act of making something known or public that was previously secret or private / information or a fact that is made known or public that was previously secret or private 

 

 

 

We believe one of Invesco's greatest strengths is our separate, distinct investment teams in multiple markets across the globe. A key focus of our business is fostering a strong investment culture and providing the support that enables our investment teams to maintain well-performing investment capabilities. We believe the ability to leverage the capabilities of our investment teams to help clients across the globe achieve their investment objectives is a significant differentiator for our firm.

 

distinct : easily or clearly heard, seen, felt, etc. / clearly different or of a different kind / used to emphasize that you think an idea or situation definitely exists and is important

 

foster : to encourage something to develop /  (especially British English) to take another person’s child into your home for a period of time, without becoming his or her legal parents 

 

leverage : (formal) the ability to influence what people do / the act of using a lever to open or lift something; the force used to do this 

 

 

 

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Competition

 

The investment management business is highly competitive, with points of differentiation including investment performance, fees, range of products offered, brand recognition, business reputation, financial strength, depth and continuity of relationships and quality of service.

 

 

 

We compete with a large number of investment management firms, commercial banks, investment banks, broker dealers, hedge funds, insurance companies and, increasingly, firms outside the traditional financial industry, such as technology providers.

 

 

 

Many of these competitors have greater financial resources and higher brand recognition than the company. We believe our experience as a trusted partner to clients, the quality and diversity of our investment capabilities, product types and channels of distribution, and our commitment to innovation enable us to compete effectively in the global investment management business.

 

 

 

There are few independent investment managers with teams as globally diverse as Invesco's and with the same breadth and depth of investment capabilities and vehicles. We offer multiple investment objectives within the various asset classes and products that we manage.

 

 

 

We also believe being an independent investment manager is a competitive advantage, as our business model avoids conflicts that are inherent within institutions that both manage and distribute and/or service those products. Lastly, we believe continued execution against our strategic objectives will further strengthen our long-term competitive position.

 

 

inherent : that is a basic or permanent part of somebody/something and that cannot be removed

 

 

 

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