Invesco Ltd. (NYSE: IVZ) reported Q2 EPS of $0.35, $0.09 worse than the analyst estimate of $0.44. Revenue for the quarter came in at $1.42 billion versus the consensus estimate of $1.04 billion.

Update from Marty Flanagan, President and CEO

"Against the backdrop of a global pandemic, we worked hard to meet client needs by meaningfully ramping up our virtual engagement, digital platforms and thought leadership, and transforming how our employees collaborate remotely across the globe," said Marty Flanagan, President and Chief Executive Officer of Invesco, Ltd. "These efforts, combined with strong investment performance in high-demand capabilities, led to improved flow fundamentals in the quarter.

"Our institutional pipeline has grown to record levels. Our Solutions capability enabled more than 50% of this pipeline, created wins in customized mandates during the quarter and continues to drive positive conversations with clients. Long-term flows into Fixed Income capabilities were strong. Long-term flows in EMEA turned positive in the quarter, and we continue to see net inflows in Asia Pacific.

"As markets began to rebound in the second quarter, AUM increased to more than $1.1 trillion. However, average AUM for the second quarter was lower than the prior quarter. Lower average AUM, combined with the mix shift into lower yielding products, negatively impacted revenues. Despite this, our financial and liquidity position improved during the second quarter through prudent expense management and the reduced common equity dividend. These steps enabled the firm to improve both debt and cash balances, consistent with our longer-term objectives.

"Invesco has built a global, diversified business with the depth, breadth and resiliency to deliver positive outcomes to clients through various market cycles. We had the foresight and discipline to invest in several macro trends that are shaping the future of our industry. As a result, we are now well positioned in areas of high demand with the majority of our investment capabilities aligned with key future growth areas, a significant and growing Solutions effort, and leadership positions in alternatives, ETFs, fixed income, factors and emerging market capabilities as well as in the fast-growing China market. We remain focused on meeting the needs of our clients in a challenging market environment while running a disciplined business and working toward a return to organic growth.

"Lastly and importantly, Invesco is committed to addressing long-standing racial inequities that became the focus of protests worldwide during the quarter. In support of the Black Lives Matter movement, we further strengthened our commitment to addressing social injustice by deepening our understanding on this topic; driving progress in our communities; and further expanding diversity and inclusion efforts across our global firm. As an example of our efforts, we supported the Metro Atlanta Chamber of Commerce efforts to pass hate crime legislation in Georgia, which was recently signed by the governor, and took other steps to address systemic racism in our communities."

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