Invesco Ltd. is a publicly owned investment manager that provides services to a wide range of clients, including retail and institutional clients, high-net worth clients, public entities, corporations, unions, non-profit organizations, endowments, foundations, pension funds, financial institutions, and sovereign wealth funds. The company manages separate client-focused equity and fixed income portfolios and launches various mutual funds and exchange-traded funds.
In 2023, Invesco faced challenges due to uneven global capital markets and geopolitical events. The company's financial results were impacted by fluctuations in exchange rates against the U.S. Dollar. Despite these challenges, Invesco's diversified product lineup maintained net long-term inflows, with the strongest performance in ETFs.
Financially, Invesco reported an operating loss of $434.8 million in 2023, compared to operating income of $1.3 billion in 2022. The net income attributable to Invesco Ltd. was a loss of $333.7 million in 2023, down from a profit of $683.9 million in 2022. The company's adjusted operating income also decreased to $1.2 billion in 2023 from $1.6 billion in 2022.
In terms of assets under management (AUM), Invesco saw an increase to $1.6 trillion in 2023 from $1.4 trillion in 2022. However, the company experienced net long-term outflows of $288.9 billion in 2023, compared to outflows of $330.8 billion in 2022. Additionally, the company's average AUM for long-term investments decreased to $1.1 trillion in 2023 from $1.1 trillion in 2022.
Invesco's financial flexibility improved as the company ended the year with no balance on its floating rate credit agreement, and its cash and cash equivalents balance increased to $1.5 billion. The company also amended and restated its floating rate credit agreement, increasing facility capacity from $1.5 billion to $2.0 billion and extending the expiration date.
In 2023, Invesco's executive leadership underwent a change, with Andrew R. Schlossberg succeeding Martin L. Flanagan as President and CEO of the company.
Invesco's investment capabilities performance overview showed mixed results, with the company reporting market gains and losses of $161.1 billion in 2023, compared to losses of $243.5 billion in 2022. The company's revenue yield also decreased to 40.4 basis points in 2023 from 48.7 basis points in 2022.
In summary, Invesco faced challenges in 2023 due to uneven global capital markets and geopolitical events, leading to a decrease in operating income and net income. However, the company improved its financial flexibility and saw an increase in assets under management. The change in executive leadership also marked a significant development for the company. As a result of these announcements, the company's shares have moved 0.0% on the market, and are now trading at a price of $15.54. For more information, read the company's full 10-K submission here.
