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DATE

Tuesday, April 28, 2026 at 9 a.m. ET

CALL PARTICIPANTS

  • Chief Executive Officer — Andrew Ryan Schlossberg
  • Chief Financial Officer — Laura Allison Dukes

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TAKEAWAYS

  • Net Long-Term Inflows -- $21.8 billion, marking the eleventh consecutive quarter of net long-term inflows and 4% annualized organic growth.
  • Asia Pacific and EMEA Net Inflows -- 17% and 8% annualized organic growth, respectively, within these regions.
  • ETF and Index AUM -- Ended the period at a record $638 billion, or over $1 trillion including QQQ, driven by nearly $19 billion of net inflows and 11% annualized organic growth.
  • China Joint Venture AUM -- Reached a record $142 billion, with $8.7 billion net long-term inflows and 31% annualized organic growth.
  • Fundamental Fixed Income Flows -- $3.7 billion in net long-term inflows, 5% annualized organic growth in this capability, and $14 billion when including ETF and China-based assets.
  • Separately Managed Accounts (SMAs) AUM -- Platform reached $37 billion, achieving 19% annualized organic growth in U.S. wealth management.
  • Active ETF Platform AUM -- Topped $20 billion, and exceeds $35 billion with index strategies implemented by active teams; four new active ETFs launched during the quarter.
  • Global Liquidity Inflows -- $11.6 billion of net inflows, ending with over $200 billion in liquidity AUM.
  • Private Markets Net Inflows -- $400 million, driven by direct real estate, with assets in INCREIF with leverage totaling $5 billion after just over two years in market.
  • Multi-Asset Capabilities Flows -- Institutional quantitative equity strategies generated $4.7 billion of net inflows.
  • Global Equity Income Fund Net Inflows -- $3 billion during the period, reaching $23 billion in AUM and recognized as the top-selling retail active fund in the Japanese market.
  • Overall Fundamental Equities Outflows -- $2.4 billion net outflows, with $1.2 billion of this from the developing markets fund; outflows in the segment are the lowest in nearly nine years.
  • Active Fund Performance -- 46% of active funds in the top quartile of peers over three years; over 70% of active AUM outperformed benchmarks on a five-year basis.
  • Period-End AUM -- Ended at $2.2 trillion, holding nearly flat with the prior quarter, with recent AUM growing into the $2.3 trillion range as markets recovered in April.
  • Net Revenue -- $1.3 billion, an increase of $155 million from the same quarter last year, driven by investment management fees and QQQ reclassification.
  • Adjusted Operating Margin -- Reached 34.5%, a 300 basis point improvement year over year, reflecting 500 basis points of positive operating leverage.
  • Adjusted Diluted EPS -- $0.57, 30% higher than the $0.44 reported in the same period last year.
  • Operating Expenses -- Increased $69 million from the prior year due to $43 million higher employee compensation and $21 million higher marketing costs from QQQ; $12 million in hybrid platform implementation costs included.
  • Hybrid Platform Cost Outlook -- One-time implementation costs expected in the $10 million to $15 million per quarter range for 2026, with annual cost base of at least $60 million anticipated for 2027, exclusive of implementation costs rolling off.
  • Common Share Repurchases -- $40 million repurchased in the quarter (1.6 million shares); Board authorized an additional $1 billion in buybacks in February.
  • 2026 Operating Expense Guidance -- Forecasted at $3.275 billion, at a $2.3 trillion AUM level, assuming flat markets; compensation expected mid-range of 38%-42% of revenue.
  • 2026 Capital Return Target -- Total payout ratio, including dividends and buybacks, targeted near 60%.
  • Canada Partnership -- $19 billion AUM to transition to CI in Q2, resulting in a $5 million-$10 million quarterly operating income decline, expected to improve as subadvised revenue grows.
  • Net Revenue Yield -- 22.9 basis points for the quarter; exit yield at quarter-end was 22.8 basis points, reflecting stabilization after moderation from mix shift.
  • Effective Tax Rate -- Close to 24% for the period; estimated at 25%-26% in the next quarter, excluding discrete items.
  • Leverage and Balance Sheet -- Ended with $1.1 billion drawn on revolver due to $500 million senior note redemption and $500 million preferred buyback; leverage ratios expected to improve through 2026 as revolver is paid down and EBITDA grows.
  • Distribution Fee Ratio Guidance -- Third-party plus distribution fees expected to be 22%-23% of management fees, reflecting full QQQ impact.

SUMMARY

Management emphasized disciplined execution of strategic priorities targeting scalable growth areas such as fixed income, ETFs, and Asia Pacific, with nearly $700 billion of AUM across APAC and EMEA. Management reported robust organic asset growth in both core and emerging channels, citing sustained net inflows into ETFs, fixed income, and the China JV, while highlighting innovations with partnerships and new product launches as drivers of future revenue. The team detailed progress on cost controls and margin expansion, linking improved profitability to the mix shift and operational investments, and reinforced their plan for continued capital return, including an incremental $1 billion buyback authorization. Balance sheet flexibility increased with the redemption of senior notes and ongoing revolver usage, positioned for incremental deleveraging, as stated by management.

  • Schlossberg said, "our installed base, where we have built a dominant, entrenched position over decades, will be difficult to displace." regarding QQQ's competitive advantages against new Nasdaq-100 ETF entrants.
  • Dukes indicated that migration of assets onto the hybrid investment platform is on track, with the full implementation scheduled for completion by year-end 2026 and a minimum $60 million ongoing cost base for 2027, excluding rollout costs.
  • The company stated that the repositioned portfolio—post-divestitures and strategic simplification—has clarified platform structure, with one platform each for fixed income, equities, and private markets globally.
  • Management confirmed that share repurchases and dividends together are targeted to achieve a ~60% payout ratio for 2026 and will continue as ongoing capital priorities.

INDUSTRY GLOSSARY

  • QQQ: Invesco QQQ Trust, a flagship ETF tracking the Nasdaq-100 Index, noted for high liquidity and a wide institutional and retail investor base.
  • SMAs: Separately Managed Accounts, bespoke portfolios managed for individual or institutional clients, referenced here for their role in tax optimization and personalization.
  • INCREIF: Invesco Core Real Estate Income Fund, the firm’s U.S. real estate debt fund aimed at the wealth channel.
  • CIT: Collective Investment Trust, an investment structure tailored for retirement and defined contribution plans, newly launched for private real estate access.
  • Hybrid Investment Platform: Invesco’s in-development investment infrastructure designed to integrate portfolio management systems, expected to achieve cost efficiencies after completion.

Full Conference Call Transcript

Andrew Ryan Schlossberg: Thank you, Gregory Wade Ketron, and good morning to everyone. I am pleased to be speaking with you today. Before we review this quarter's results, I would like to reiterate our strategic priorities and our key performance drivers as highlighted on slide three of today's presentation. These strategic imperatives focus our efforts, guide our decisions, and provide a clear framework for navigating a rapidly evolving asset management landscape. Our strategic priorities remain grounded in a simple conviction. Regardless of broader market conditions, geopolitical events, or cyclical, structural, or fundamental headwinds, executing against these priorities will leverage the best of Invesco Ltd., accelerate our key areas of opportunity, and drive profitable growth.

And that is exactly what we are seeing in our business. Profitable organic growth is paramount. As such, we are focusing on high-demand, scalable investment capabilities like fixed income, and delivery vehicles like ETFs. We continue to drive value through our expansive global footprint with a significant and unique Asia Pacific presence, including a hard-to-replicate Chinese JV, and a strong performing and growing EMEA business. Together, these regions represent nearly $700 billion of our client AUM.

We are also well positioned to generate increased value in our private markets business where we have a strong institutional heritage in real asset and alternative credit strategies, which we are now leveraging as we bring those products into the faster growing wealth management space. These existing Invesco Ltd. strategies are being augmented by our recently announced partnerships with Barings and LGT Capital. Each of these relationships is progressing well, and we look forward to updating you on developments with additional product launches later this year. We also continue to sharpen our focus and accelerate innovation across products and vehicles such as active ETFs, SMAs, models, customized solutions, and digital assets.

We are seeing momentum build in each of these areas and have launched several new products and partnerships this year already. Our progress on strategic priorities also includes continued strengthening of our balance sheet and efficient capital deployment, including returning a portion of it to our shareholders through increasing common share repurchases and dividends. We continue to prioritize the intersection of market size and secular change where Invesco Ltd. is uniquely positioned to drive growth in the highest opportunity regions, channels, and asset classes. This is the guiding principle by which we measure opportunities, deemphasize when needed, and focus resources to drive growth across the organization.

We will continue to execute with discipline, allocate capital and resources accordingly, and measure progress against our key performance drivers indicated on the far right-hand side of this slide. So let us turn to slide four and take a look at how our efforts translated into asset flow results in the first quarter. Markets had strong momentum coming into the quarter, but ultimately gave way to heightened volatility as geopolitical uncertainty, sharp moves in energy prices, and changing interest rate expectations weighed on public markets. It is in this type of operating environment that the benefits of our broad, scaled, diversified global platform are most evident.

With elevated volatility, money was in motion, and clients continued to entrust Invesco Ltd. with significant capital across our global product set. Net long-term inflows were $21.8 billion, marking the eleventh straight quarter of net inflows and representing annualized organic growth of 4%. It is also worth noting that we generated $11.6 billion in global liquidity inflows and we ended the period with over $200 billion in AUM. We continue to be encouraged by the breadth of our overall growth. We had solid positive flows across several dimensions, including in many of our strategically important investment capabilities, across each of our three regions, in both our active and passive strategies, and across wealth management and institutional channels.

The Asia Pacific and EMEA regions again produced very strong net inflows with 17% and 8% annualized organic growth, respectively. We also saw our strongest quarter of active net inflows with nearly $15 billion generated around the world. Additionally, institutional demand has remained strong, our fifth consecutive quarter of annualized organic growth in excess of 5%. So let me spend a few minutes clicking into growth drivers in each of these investment capabilities. Starting with our ETF and index capability, where we continue to meaningfully scale and diversify our platform to meet evolving client demand. Our ending AUM stood at a record $638 billion, or over $1 trillion including the QQQ.

We had nearly $19 billion of net inflows during the quarter, or 11% annualized organic growth. Within our ETF range, we garnered net inflows across a diverse set of products, both equity and fixed income. Our equal-weight S&P 500 delivered record net inflows and we saw strong demand for QQQM from investors with long-term horizons. We continue to see strength in S&P quality and momentum lineup as well.

We remain focused on innovation in the ETF space as we launched four new active ETFs this quarter, strengthening our market position in this high-demand segment as investors continue to use the ETF wrapper to access active equity and fixed income strategies, particularly in more volatile market environments like we are seeing today. We have built a robust active ETF platform currently managing over $20 billion in assets, which increases to more than $35 billion when you include index strategies implemented by our active teams. With our QQQ fund conversion on December 20, we had a full quarter of the fund’s flows included in our results.

The fund continues to attract good demand, but after multiple quarters of very strong inflows, we ultimately had net outflows this quarter. This reflected normal rotation and profit-taking as investors broaden exposures amidst the more volatile market environment. However, with abating market volatility in April, we have seen strong demand and net inflows return for this flagship product. Let me take a moment here to address the recent developments that Nasdaq has expanded its licensing to allow two additional U.S.-listed ETFs to track the Nasdaq-100.

First, we see this as an evolution of a highly successful benchmark reflecting the global importance of the Nasdaq-100, where we dominate with our flagship QQQ fund, which is one of the world's most actively traded ETFs and a core exposure vehicle globally for the Nasdaq-100. As you know, QQQ's position is supported by unmatched liquidity with tight spreads, deep options and derivatives markets, and a very large and broad institutional and retail investor base. These critical characteristics, coupled with the immense brand recognition that is synonymous with Invesco QQQ, a one-of-a-kind and a large marketing spend, and positive client outcomes built over 25-plus years, minimizes the dependence on being the sole licensed product from an index provider.

Our installed base is tough to erode, and it has been proven that switching costs are higher than assumed, with taxes being a major factor. By example, the introduction of our own QQQM expanded the Nasdaq-100 ecosystem without cannibalizing the QQQ. Nasdaq has historically been selective in how it has licensed the Nasdaq-100 index, and that selectivity resulted in the QQQ being the primary U.S.-listed ETF tracking the index for decades. Nasdaq has publicly reaffirmed its commitment to our QQQ innovation suite as a cornerstone of their Nasdaq-100 ecosystem.

Further, Nasdaq's licensing for these new Nasdaq-100 exchange-traded funds is consistent with our QQQ at eight basis points, meaning any competitor fund will pay the same amount and the existing licensing agreements are not impacted by these filings. Our relationship with Nasdaq remains strategic and long-standing. To put a fine point on it, our installed base, where we have built a dominant, entrenched position over decades, will be difficult to displace. More so, we believe that the attention will create an increasingly large pool of assets behind this important benchmark.

Let us move on to fundamental fixed income, where we garnered a very healthy $3.7 billion in net long-term inflows, or 5% annualized organic growth, with strong attribution across geographies and channels. This only considers the narrower view of our fundamental fixed income capability. Looking more broadly at the asset class across all of our investment capabilities, that net flow number jumps to $14 billion with the inclusion of our related ETF and China-based fixed income assets. Momentum in our fundamental fixed income capability was broadly driven by institutional inflows into investment-grade products, as well as fixed income SMAs, where we continue to see strong demand.

Our entire SMA platform, which also includes a portion of equity assets, now stands at $37 billion in AUM. We have one of the fastest growing SMA offerings in the United States wealth management market, generating an annualized organic growth rate of 19% this quarter. Moving on to the China JV, we produced another exceptionally strong quarter, demonstrating that we are well positioned in this market. We reached a record high AUM of $142 billion and delivered $8.7 billion of net long-term inflows, or a 31% annualized organic growth rate. In a volatile global market environment, the China JV demonstrated the benefits of its diversified platform.

Looking at the quarter as a whole, net inflows continued to be driven by fixed income plus strategies, which have now reached $40 billion in AUM on our JV platform. We have developed a diversified product lineup in our China JV designed to meet varying client risk appetites, and we like the position we have built and the opportunity it presents long term. To support this growth during the quarter, we launched 14 funds with total AUM of $2.5 billion, mostly aligned with the growing demand for balanced and equity ETF strategies. Shifting to private markets, we posted $400 million of net inflows driven by direct real estate.

The asset class has gained momentum, led by INCREIF, our real estate debt fund for the U.S. wealth management channel, which continues to gain scale, and our U.S. core plus real estate equity fund, which is seeing strong institutional engagement. Assets in INCREIF with leverage now total $5 billion after a little more than two years in the market. This is one of the fastest ramp-ups in the wealth channel for a commercial real estate credit product and is a reflection of how our innovation mindset is helping drive our results. Additionally, we continue to prioritize private markets product development for the defined contribution channels around the world.

During the quarter, we launched the Invesco Core Plus Real Estate Trust, which is a collective investment trust designed to provide U.S. defined contribution plans access to private real estate. Among the first of its kind, this CIT introduces institutional real estate capabilities that support the long-term needs of defined contribution investors. We launched this fund with a mandate from a large U.S. corporate institutional investor as the anchor client, marking a significant win for our business. Our real estate net inflows were modestly offset by net outflows in alternative credit, which were exclusively driven by our bank loan products. BKLN, our industry-leading ETF, experienced redemptions of $400 million in Q1, instigated by the technology-led sell-off.

However, the fund remains well scaled and positioned in the market. Regarding the market dynamics in private credit at large, the headlines are oftentimes drowning out the fundamentals and conflating various products. Invesco Ltd.'s alternative credit platform, built around broadly syndicated loans, CLOs, and disciplined direct lending, had zero software exposure, showcasing the diversified nature of the platform that is designed precisely for environments like this one. From a product standpoint, it is important to note that we are not in the BDC space. We have dry powder, diversification, and extensive experience. For managers with their discipline, this volatility may ultimately prove to be an opportunity.

The growth potential in private credit has not fundamentally changed, and manager selection remains key given the wide dispersion in the sector. The current turbulence has not impacted our long-term views, and we believe we have a very favorable position. We are excited about the prospects in private markets, organic growth opportunities amplified through our innovative partnerships with Barings and LGT Capital to further penetrate the wealth management and defined contribution markets. Moving on to multi-asset capabilities, we also had strong long-term net inflows driven by our institutional quantitative equity strategies, which generated $4.7 billion of net inflows during Q1.

Finally, in fundamental equities, U.S. value equities turned to net inflows during the quarter, which was matched by continued positive net flows in global, international, and regional equities. Clients in Asia Pacific and EMEA drove ongoing momentum in these markets, headlined by our Global Equity Income Fund, which remains the top selling retail active fund in the Japanese market. This fund posted net inflows of $3 billion during the quarter, rapidly growing to $23 billion in AUM, while generating a very favorable net revenue yield for Invesco Ltd. Despite these positive fundamental equity flow highlights this quarter, we did remain in net outflows of $2.4 billion overall in the segment.

This included the expected $1.2 billion in net outflows from our developing markets fund, albeit a significant moderation from recent history. However, it is important to highlight that our overall fundamental equity outflows this quarter were the smallest we have seen in nearly nine years. On a gross sales basis, we had our best fundamental equities flow quarter since 2022. Moving on to slide five, which shows our overall investment performance relative to benchmarks and peers, as well as our performance in key capabilities where information is readily comparable and more meaningful to drive results.

Investment performance is key to winning and maintaining market share regardless of overall market demand, and achieving first quartile investment performance remains a top priority for Invesco Ltd. Overall, 46% of our active funds are performing in the top quartile of peers on a three-year time horizon, with nearly half reaching that bar on a five-year basis. Further, over 70% of our active AUM is beating its respective benchmark on a five-year basis. With that, I will take a pause and turn the call over to Laura Allison Dukes to discuss the quarter's financial results, and I look forward to your questions.

Laura Allison Dukes: Thank you, Andrew, and good morning, everyone. I will start with the first quarter financial results on slide six. Assets under management held up well against market volatility in the first quarter. While volatility drove a $42 billion decline in AUM for the quarter, we were able to mostly offset this with continued strong net long-term asset inflows of $22 billion and $12 billion of net liquidity inflows. AUM at the end of the quarter was $2.2 trillion, nearly the same level as the end of the fourth quarter. Average long-term AUM, which included a full quarter of the QQQ, reached nearly $2 trillion, an increase of over $400 billion, or 26% over last quarter, largely due to the QQQ.

Average long-term AUM is up nearly 50% over the same quarter last year due to the QQQ, as well as organic growth of 6% over the last four quarters and higher market levels. While we did see market weakness that negatively impacted our AUM levels later in the first quarter, we subsequently saw a strong rebound as markets have recovered so far in April, with both key domestic and global equity indices up and bond indices holding at recent levels.

This has led to our AUM growing into the $2.3 trillion range more recently, an increase of over 5% versus quarter-end, with growth across nearly all of our capabilities, led by ETFs and the QQQ, and, to a lesser degree, fundamental equities, the China JV, and fundamental fixed income. Net revenues, adjusted operating income, and adjusted operating margin all showed significant improvement from the same quarter last year, while adjusted operating expenses continued to be well managed. This drove 500 basis points of positive operating leverage and a 300 basis point operating margin improvement year over year, with operating margin improving to 34.5%.

Adjusted diluted earnings per share was $0.57 for the first quarter versus $0.44 for the same quarter last year, a 30% improvement. Our focus on strengthening the balance sheet continued during the quarter as we redeemed a $500 million senior note that matured in January. Finally, we increased the amount of common share repurchases in the first quarter compared to prior quarters, buying back $40 million, or 1.6 million shares. Also in February, our Board authorized an additional $1 billion in common share repurchases. Moving to slide seven. Net revenue yield increased over the fourth quarter, largely due to the QQQ reclass to fee-earning, partly offset by the impact of the divestitures that occurred in the fourth quarter.

Client demand continues to drive diversification of our portfolio, with strong growth in lower-fee products such as ETFs and fundamental fixed income capabilities, while the demand for higher-fee products such as fundamental equities, particularly global equities, has been weaker. This has resulted in a more balanced AUM, which better positions the firm to navigate various market cycles, events, and shifting client demand. We have seen the impact of the asset mix shift moderate over the last year, resulting in a more modest decline in the net revenue yield and, more recently, approaching a degree of stabilization, or an inflection point, we experienced in the first quarter.

To provide context, the net revenue yield was 22.9 basis points for the first quarter, and the exit yield at the end of the first quarter was 22.8 basis points. The future direction of asset mix shift will dictate the net revenue yield trajectory. Turning to slide eight. Net revenue of $1.3 billion in the first quarter was $155 million higher as compared to the same quarter last year. The increase in net revenue was largely from investment management fees, mainly driven by higher average AUM and the reclassification of QQQ to fee-earning. Operating expenses increased $69 million versus the same quarter last year, mainly driven by higher employee compensation and marketing expenses.

Employee compensation was $43 million higher than the same quarter last year, largely due to a factor that we noted on our prior call. We made incremental changes to our retirement eligibility criteria for long-term awards that will result in a timing change in how retirement-related expenses will be recognized going forward. This resulted in a $33 million increase in compensation expense in the first quarter. Marketing expenses were $21 million higher due to the marketing associated with the QQQ now being recognized in marketing expenses upon reclassification. The hybrid investment platform implementation costs were $12 million in the first quarter, in line with our expectations and prior quarters.

The incremental operating expense associated with AUM that has been moved onto the hybrid platform was $4 million in the first quarter. We continue to make progress in implementing the hybrid approach with expected completion by 2026. Regarding the hybrid investment platform cost for 2026, we expect one-time implementation quarterly costs to continue in the $10 million to $15 million range per quarter going forward, with the push to have implementation completed by year-end. As we transition more AUM onto the platform throughout the year, the incremental expense related to AUM on the platform will build towards $10 million per quarter later this year. Expenses associated with the platform may fluctuate quarter to quarter due to timing.

Looking ahead to the impact the hybrid investment platform will have on operating expenses in 2027 and beyond, we expect the cost base to be at least $60 million in calendar year 2027, excluding the implementation costs that will roll off after 2026 when the project is complete, with run-rate savings that should build as 2027 unfolds. We will provide further updates as implementation progresses. Regarding the overall operating expense outlook for 2026, with the impact of the divestitures and the QQQ-related marketing expenses now in our expense run-rate, we expect operating expenses for 2026 to be in the $3.275 billion range under flat markets from the higher April AUM level that we indicated is in the $2.3 trillion range.

We still believe that our operating expense base is approximately 25% variable in relation to changes in net revenue. The effective tax rate for the first quarter was close to 24%. For the second quarter, we estimate our non-GAAP effective tax rate will be in the 25% to 26% range, excluding any discrete items. The actual effective rate can vary due to the impact of nonrecurring items on pretax income and discrete tax items. I will wrap up on slide nine. We continue to make considerable progress on building balance sheet strength and improving our leverage profile. In January, we redeemed the $500 million senior notes that matured.

We did end the quarter with $1.1 billion drawn on the revolving credit facility as expected, driven mainly by repurchasing $500 million of preferred stock in December and the senior note redemption in January. The benefits gained in financing these transactions through the credit facility are a lower floating interest rate and flexibility to pay down the facility as cash flows beyond our capital priorities allow without prepayment penalties. We expect to reduce the amount drawn on the revolver as the year progresses.

Leverage ratios in the first quarter ticked up very slightly due to the higher balance on the credit facility, but we expect the ratios will improve the remainder of this year as we reduce the amount drawn on the facility and simultaneously grow EBITDA. We also continued common share repurchases in the first quarter, increasing the amount repurchased to $40 million, or 1.6 million shares. We intend to continue a regular common share repurchase program going forward as we target a total payout ratio, including common dividends and share buybacks, to be near 60% for 2026. And as I noted previously, our Board authorized in February an additional $1 billion in common share repurchases.

We will continually evaluate our future capital return levels in line with our capital priorities. To conclude, the strength of our net flow performance and diversity of our business continued despite a volatile market environment, and we delivered strong revenue growth as a result. This, combined with well-managed expenses, delivered significant operating leverage and a sizable improvement in our operating margin over the prior year. We will also continue making progress in building a stronger balance sheet throughout 2026. We are committed to driving profitable growth, a high level of financial performance, and enhancing the return of capital to our shareholders. We will now open the call for questions.

Operator: Please press 1. You will be announced prior to asking your question. Please pick up your handset when asking your question. To withdraw your request, please press 2. And one moment please for our first question. Our first question comes from Brennan Hawken with BMO Capital Markets. You may ask your question.

Brennan Hawken: Good morning. Thanks for taking my question. Would love to start on the Qs. Andrew, thanks for that color and the case study with the QQQM. I think it was really helpful in contextualizing. Now that you have managed QQQ in the new structure for a while, what is a reasonable expectation that we could have for securities lending that you might be able to generate from that product?

Andrew Ryan Schlossberg: Yes. Hey, thanks, Brennan, for the question. Securities lending is definitely something we have eligible for the QQQ. Given the size and the concentration of some of those positions, the opportunities are there, but they are not super large. We will continue to evaluate ways, but we do not see that as a huge opportunity.

Brennan Hawken: Okay. Fair enough. And then, Andrew, I was hoping to maybe take a step back and ask a bigger, picture question. 2025 was an eventful year for Invesco Ltd. for sure. We had the first preferred paydowns, the QQQ restructuring, notable callouts. When you turn the page and look at what you would like to achieve in the coming years, what are some of the strategic priorities that investors should be thinking about?

Andrew Ryan Schlossberg: Yes, thank you. We did get a lot done last year in 2025. I think it really set Invesco Ltd. increasingly on a course for continued future growth, a much improved balance sheet, and ability to return capital to shareholders. We do still have a lot more to do and execute against. I think there are four principal areas that we are focused on to continue the organic growth we have been seeing and hopefully accelerate it. One is the enormous shift in personalization that is going on around the world, but in particular in the wealth management channels, and then even more in particular in the United States.

We feel like our $1 trillion ETF platform really sets us up well as that personalization theme continues. The growth in our SMA platform has been exceptional, and we view that as another winner in the personalization and tax optimization theme. Lastly, we have a models business that we are going to lean into even more. All of those things around personalization matter. We think the demand for income is not going away around the world, and as I highlighted in our remarks, we continue to grow quarter after quarter exceptionally. We have an over $700 billion platform that spans geography and all duration.

As you see income needing to be generated in different formats, whether that is ETFs or SMAs, we will be there to participate. Another area is the flow growth expectations that we have because of money in motion, demographic shifts, and the like in Asia and in Europe in particular. We have been seeing outsized growth there and we continue to have a really favorable position with now something like a third to 40% of our AUM out in those markets.

We have been talking about private markets into wealth management, but I think the less discussed industry-wide has been the opportunity in retirement and defined contribution, not just with some of the things happening in the United States, but what is happening around the world for wealth and DC for private markets. Then, of course, technology and what it is going to do to innovate and move at a different pace. All those things are opportunities we have been leaning into, and we are going to lean into even more in 2026.

Brennan Hawken: Thanks for taking my question. Thank you.

Operator: Thank you. Our next question comes from Daniel Fannon with Jefferies. You may ask your question.

Daniel Fannon: Thanks. Good morning. Allison, I appreciate all the comments around expenses for this year and some of the savings into next year. But I was hoping to get a little bit further in terms of detail as we think about this year and as it progresses, maybe the sequential changes or other things to think about to get to that $3.275 billion as we exit 2026?

Laura Allison Dukes: Sure. Let me see if I can give you a little bit of color. The $3.275 billion, again, I will make sure that is clear, is based on that AUM level of around $2.3 trillion towards the end of April. That is kind of all things being equal, and we do not consider market in any of that. Thinking about that, I would say, to start from a compensation standpoint, our target has historically been in that 38% to 42% range. This year, we are expecting to be in the middle of that range. So maybe that gives you some idea around compensation as a percent of revenue and what that could look like.

Keep in mind the seasonality that we have in the first quarter. We noted some of that seasonality already in terms of the change in our retirement provisions and what that did in terms of the acceleration of long-term awards—about $33 million in the quarter. We always have about $10 million of seasonality in payroll taxes in the first quarter. We think about compensation-to-revenue on a full-year basis, not quarter to quarter. Hopefully, that gives you a little bit of color.

I gave you some of the context around the hybrid investment platform, and we think implementation will continue in that $10 million to $15 million range per quarter, maybe trending towards the higher side as we get closer and closer to full implementation by the end of the year. The incremental cost of running the platform—we noted that is $4 million in this quarter. We think that will be fully phased in to about $10 million incremental by the end of this year. And then, of course, marketing—you have the QQQ fully in this quarter, so there is not a lot of change there.

There was a lot of noise coming out of the fourth quarter, but the first quarter is relatively clean with the exception of the seasonality. The only other thing I would point to is just a reminder that we are entering into our partnership in the Canadian business. We expect that to close with CI at the end of the second quarter. That is a transition of about $19 billion in AUM, and that has a modestly negative operating income impact for the third and the fourth quarter of this year.

That will be a loss of operating income to the tune of $5 million to $10 million per quarter, which we expect to improve over time as we continue to execute the subadvisory relationship with CI and grow that relationship overall. The guidance I gave is inclusive of Canada. It is inclusive of everything I just mentioned. Hopefully, that gives you a little bit of color and context underneath the full expense guide.

Daniel Fannon: Yes, that is helpful. Thank you. And then just in general for the industry, you are seeing shelf space on platforms like Schwab or other third parties getting more expensive for ETFs and other products. Can you talk about the economic impact you see as you think about this year and next in terms of operating on some of these third-party distribution platforms?

Andrew Ryan Schlossberg: Maybe I will start, and Allison can add to it. We do not want to comment specifically on any discussions with any particular wealth platform. But what I can say is that platform fees as a whole—we always look at them as the value of the distribution and the growth that they provide. Industry-wide, it is logical that as continued vehicle shift happens from mutual funds to ETFs, we are going to see overall mutual fund platform fees decline, and an element of this shift in some ways is going to go to other product types. But all of that said, any new platform fee—

Laura Allison Dukes: Dan, did you catch the rest of Andrew's answer, or do we need to go over that one again?

Daniel Fannon: It cut out about midway through, I think.

Andrew Ryan Schlossberg: Alright. Let me start at the beginning a little bit and make sure everybody caught it. I definitely do not want to comment specifically on any one particular wealth platform. But what I can tell you is that we look at the value of distribution and the growth provided. Industry-wide, there has really been a vehicle shift going on that we are all familiar with from mutual funds to ETFs. It is logical that you are going to see overall mutual fund platform fees decline, and an element of that is going to shift to some other product types.

New platform fees that we would consider are really going to be focused on new assets, not assets that are on the platforms today. We are also going to have to account for the composition of the ETF and the relevance of the legacy services that are very much associated with mutual fund sharing that do not exist in ETFs, and then, of course, the overall cost of ETFs in general. There is a lot to look at when this is discussed. But all of this said, to your specific question, we do not see this having a material impact at all.

We will continue to evaluate any changes case by case at the firm level, at the product positioning level, for outcomes we expect with clients, and also long-term economics.

Daniel Fannon: Great. Thanks for taking my questions.

Andrew Ryan Schlossberg: Thanks. Sorry about the technology.

Operator: Thank you. Our next question comes from Glenn Paul Schorr with Evercore. Your line is open. You may ask your question.

Glenn Paul Schorr: Hi. Thanks very much. Hi, Andrew. Curious if we could drill down a little bit more on your non-U.S. platform. You saw the growth; you talked about the growth in both Asia and EMEA. But maybe we could drill down on assessing the durability of it by getting you to talk about what changes or additions you have made on the product lineup and distribution investments that you are piecing together as we think about growth going forward. Thanks.

Andrew Ryan Schlossberg: Yes, thanks for the question. As I mentioned, the non-U.S. profile has just continued to go from strength to strength over several quarters. It has always been a legacy strength of Invesco Ltd., but the acceleration has been meaningful over the last few years. Part of the testament to our strength is that we have been in those markets for decades. We never left the markets when there have been challenges, and that longstanding nature is really critical. We are also pretty focused on the markets in both Asia and EMEA that we choose to compete in.

In Asia, China, Japan, Southeast Asia, and parts of Greater China are all huge priorities for us, and we have made them those priorities. In a market like India, we chose to enter into a JV through the partial sale that we made last year. Product development is critical. We continue to innovate. I mentioned some of those innovations in China. The strength we are seeing in global equity is innovation we put in place in Japan five, six, seven years ago that is starting to pay off the last few years. The distribution is really strong and diverse; it cuts across institutions and private banks. In EMEA, same kind of thing.

The slower overall growth in the industry and in the economies in parts of Europe and the UK—we are not seeing it necessarily flow through into our business. We are taking advantage of some real secular changes that are happening with regulatory reforms in the UK and more emphasis on retirement in those markets. We are winning really meaningful mandates in parts of fixed income that are very solutions-oriented. We continue to see growth in that ETF platform where we planted seeds over a decade ago, plus distribution in those markets is really strong and diverse.

They continue to be places where the long-term applications we put in place, coupled with the investments we continue to make there, position us well. We believe that these markets have outsized growth in terms of asset flow and money in motion for demographic reasons and the regulatory and societal topics that I mentioned before. We are really uniquely positioned, and so we are going to continue to focus there.

Glenn Paul Schorr: Thanks for all that, Andrew. Maybe one quickie that goes hand in hand with that is I think I saw an article this week on a potential QQQ on the international side. It got me thinking it was like bottled water—you are like, wow, how did I not think of that before? Just curious on where that is in development and how you are thinking about the rollout and marketing plan.

Andrew Ryan Schlossberg: Yes. We extended the Q lineup last year in Hong Kong, and this year it is going to be in Japan. That is just one of the innovations that we are putting forward. QQQ is a very important ETF and product for us. We are also putting other extensions around the ETF business out in Asia, both last year and this year. The Qs will be a big flagship in those two markets, but it will be the start of even more to come with ETFs in Asia for us.

Laura Allison Dukes: I will just underscore the marketing behind that, starting over a year ago, has been significant. Getting back to some of the earlier comments, the brand awareness around the QQQ extends far beyond the United States. It is deep across Europe, and now across Hong Kong and soon to be Japan. We put quite a bit of firepower behind that and feel very good about our competitive positioning there.

Andrew Ryan Schlossberg: I mean, we often talk about the QQQ in and of itself, but the broader ecosystem around the QQQ is something like $550 billion of AUM around the world. That is what we call our innovation suite, and we will continue to look for extensions globally.

Glenn Paul Schorr: Okay. Thanks for all that. Appreciate it.

Operator: Thank you. Our next question comes from Alexander Blostein with Goldman Sachs.

Alexander Blostein: Thank you. Good morning, everybody. Just another one around the competitive dynamics in Qs. And also, Andrew, thank you for the color and the background there. I guess the question is less about the back book and more about the forward growth algorithm if competition starts to become more intense. When it comes to fees, anything you would be willing to share in how you would potentially respond if competitors come in at a lower price point, or does the product have enough competitive moat around it to sustain the current fee structure?

Andrew Ryan Schlossberg: Yes. Just to be super clear, the eight basis point index licensing fee that we pay for the funds is the same index licensing fee that others will pay. We have a contract around that. The fee differentials that could get put on these funds—we will look at when those funds get launched. I really want to emphasize what I was saying in the prepared remarks: the way that ETF owners look at this is a total cost of ownership. That includes the tightness of the spreads and the liquidity. What we have learned over time is that marginal fee rate differences at the headline level oftentimes do not relate to changes in people's conviction around where to invest.

I also would not underestimate at all the 25-year history and the brand recognition that has had hundreds of millions of dollars invested in it over the last couple of decades. We are synonymous with it. Of course, we will pay attention and make sure we remain competitive, but I think some of those extra facts really give us confidence.

Alexander Blostein: Yep. Totally. That makes sense. I wanted to ask a question about China. Really good growth there now for a couple of quarters; those markets seem to be coming back more and more. As you look at your pipeline of additional new products, what does that look like today? And is there enough there to move the needle on the blended fee rate when it comes to that bucket as a whole for you?

Andrew Ryan Schlossberg: Thank you. As we have been saying over the last couple of years, because of the growth and the maturity of the platform and because of our leadership, we have a very full product line. That does not mean we are not continuing to innovate. Much of the flow from the last several quarters has come from our existing products; that really was not the feature several years ago. This quarter, as an example of continuing to innovate, we launched 14 new products, mostly in ETFs and balanced funds, and those products generated $2.5 billion in flows in the quarter. Still, 75% of the flows came from our existing product line.

Fixed income plus has been the key driver—remember, that is kind of like a balanced fund in American terms—and it is a precursor, we think, for people continuing to get more interested in the equity markets. As they graduate into the equity markets and gain more confidence—these are retail Chinese investors—into their domestic market, we have a product line that is really well set to take advantage of that. We will continue to innovate.

Laura Allison Dukes: Relative to the fee rates in China and the range that we see there, as that market continues to evolve and as it continues to be very fixed income and fixed income plus heavy, as Andrew noted, the fee rates of products we launch tend to be slightly lower than the range that we disclosed in the presentation as to where the fee rates are running right now. What I would point you to is the fact that the margins continue to improve there.

As we continue to evolve that market and it matures—and the fee rate caps that went in several years ago that you will recall kind of totally washed through—the market becomes more and more mature, and the fee rates start to look a lot more like fee rates around the world. As there continues to be real strength and demand for ETFs, as opposed to mutual funds, you see the expected fee rate being a little bit lower than it would be for a mutual fund.

We see fee rates just slightly lower; it would not surprise me if that continues to compress a bit over time, but I think our margins have been in the high 50s to low 60s. That is a good proof point to look to in terms of the strength of the overall platform. We have a very scaled business, a very hard-to-replicate business, as we said, and we have the opportunity now to continue to innovate with products across the fee spectrum. As demand continues to evolve and perhaps as they start to move more into equities—which right now is not a market where the uptake in equities is very high—perhaps you would see fee rates move.

It is going to be very much a mix shift story over time but with really strong margin.

Alexander Blostein: Great. Thank you for all the detail.

Operator: Thank you. Our next question comes from Brian Bertram Bedell with Deutsche Bank. Your line is open. You may ask your question.

Brian Bertram Bedell: Great. Thanks. Good morning. Thanks for taking the questions. Maybe just back on the QQQ, another angle on this. Can you talk about the institutional usage versus the retail usage? It is very different dynamics, obviously. You mentioned, Andrew, the really powerful liquidity that you have in the QQQ product. What is the thought around potentially in the future having different price points for institutional versus retail flavors of the QQQ? And on the marketing budget, I think Allison, the latest guidance was $80 million, something in the midpoint of that $60 million to $100 million range. For the marketing budget, is that still the same?

It sounds like you are mixing that a little bit more towards international growth in terms of the marketing spend. If you can comment on that.

Andrew Ryan Schlossberg: Great, thank you. Let me start, and Allison can pick up. With the first part of your question, QQQ is well owned institutionally, and it will continue to be a focus for us. Every single one of our hundreds of salesforce members carry the QQQ in their bag, so to speak. They are going to continue to do so. We think demand in the institutional market is growing, not only here in the U.S. but around the world. There is access to it with people owning it in the U.S. We also have a UCITS version of it where institutions can own it on that core platform.

Then some of the things I talked about earlier where we are listing it into those couple of Asian markets—there are plenty of places for institutions to own it. A lot of times, these are not institutional buy-and-hold investors; these are institutional traders that are using it to take a position. But increasingly, as buy-and-hold comes, we will be there to participate. In terms of your question on price points, not possible in the ETF space per se, but separate accounts that invest in the QQQ index are things that we have today. Those could be at different price points for individual institutions, and that is something we capture and can continue to capture over time.

Laura Allison Dukes: As it relates to the budget, yes, the same guidance that was out there in the proxy that was filed last summer—that it is fully discretionary. We expect marketing to be in a range of $60 million to $100 million. It is fully in our run-rate today, so you have the full marketing run-rate inclusive of the QQQ in the line item for the first quarter, and we expect that to be pretty consistent throughout the year. There may be a little bit of timing differential quarter to quarter, but for the most part, that is pretty much the range that we expect for both the QQQ and our entire marketing budget.

In terms of the mix between the United States and the rest of the world, that has been in the run-rate now—even when marketing was classified somewhere else—we have been spending quite a bit of marketing money outside of the United States in marketing the QQQ. We expect to continue to do so as we see demand. We have the flexibility to choose to market how we want, where we want, and what we think is best for the product. We feel very good about the opportunities we have from here.

Brian Bertram Bedell: That makes sense. And then just one modeling question on the ratio of servicing and distribution fees to average AUM, and also third-party distribution expense relative to average AUM. It looks like on the servicing and distribution revenue side, it went down to a little less than six basis points from seven in 4Q, and then the expense went up to around 12 basis points from 11 in 4Q. I suspect this is the dynamics around the QQQ adjustments, but I did not know if there was anything one-time-ish or seasonal in those numbers. Do you think those ratios—that relationship—is a good run-rate to be modeling for the rest of the year?

Laura Allison Dukes: The relationship I would point you to is third-party plus distribution fees divided by management fees. That is your best relationship to look to given the pass-through nature of some of those third-party and distribution fees. Consistent with the guidance we gave last quarter, we expect that to be in the 22% to 23% range with the full impact of the QQQ going forward. This quarter, it was 22.7%, and we expect that relationship of 22% to 23% to hold with the full impact of the QQQ.

The one thing I would point to as you see some of the quarter-over-quarter noise in the service and distribution fees is yes, we had the reclassification change with the QQQ marketing coming out of service and distribution fees and going into marketing. It also came out of third-party contra-revenue. The other thing to note in service and distribution fees in the first quarter is you had a little over $11 million reduction related to the sale of Intelliflo. This being the first full quarter without Intelliflo, you saw that have a negative impact on service and distribution fees, but also, importantly, an even higher magnitude, better impact on expenses.

As that was the operating income headwind, it is now a bit of a tailwind that is fully in the run-rate from here. Hopefully, that helps with the relationship on the third-party and distribution fees.

Brian Bertram Bedell: Yep, very helpful. Thank you.

Operator: Thank you. Our next question comes from William Raymond Katz with TD Cowen. Your line is open. You may ask your question.

William Raymond Katz: Great. Thank you very much for taking the question. I got disconnected from the call, so I apologize if some of this was already asked. Coming back to expenses—Andrew, I hear a lot of good things around incremental margin outlook, non-U.S. scaling nicely, seems like all the kerfuffle on the QQQs is not really that bad at the end of the day. The expense guide you gave today is very good in terms of incremental margin. Can you give us an update on how you are thinking about the intermediate- to longer-term opportunity for margins at this point in time?

Laura Allison Dukes: Sure, Bill, I will take that. You continue to see the operating leverage that we are generating quarter to quarter, and we feel very good about the momentum behind that. Given the work we did last year and the simplification of our portfolio—really focusing our efforts on the higher growth, higher profitability aspects of our portfolio and the conversion of the QQQ—we have a lot of momentum behind that. We feel like we have the opportunity to continue to generate positive operating leverage. There will be some seasonality quarter to quarter. You saw a little bit of seasonality as you always do in the first quarter, but absent seasonality, we think there is pretty significant momentum.

We said all along we needed to get the margin back to the mid-30s on a path to high-30s, and we feel like we are starting to see mid-30s here. Now we have our sights focused on how we get back to the high-30s, and we feel good about the momentum behind that. We will continue managing expenses in a really disciplined way. I am glad you found the expense guide helpful today. We know there has been a lot of noise with the divestitures. We think we have a fairly clean outlook from here. It is really important to note that underneath that, we are investing in the firm—not just through the hybrid investment platform.

We are looking at constant opportunities where we can invest, drive productivity, and drive efficiency, really with an eye towards scale and positive operating leverage. It is a collective effort across our management team, and we think it is really going to deliver the momentum we need to get the margin back to the high-30s.

Andrew Ryan Schlossberg: To add to Allison's comment, the areas where we are seeing the greatest growth and we expect to continue to see the greatest growth—ETFs and China, just as two examples—scale well. We will continue to see that growth translate to strong profit growth.

William Raymond Katz: Great. Thank you, Andrew and Allison. As a follow-up, one of your peers earlier in the quarter described the retail opportunity shifting to after-tax return as a focal point. I think you have mentioned that in some of your commentary. Could you expand on that? How do you see Invesco Ltd. positioned as we move from pretax to after-tax? And is there anything in the legislative area or in the tax code that could potentially impair the opportunity to migrate to after-tax returns? Thank you.

Andrew Ryan Schlossberg: We agree. The after-tax return focus of individual investors has always been there, but it has been heightened. A lot of the tools that are available now to individual investors have increased, and those were the ones I was mentioning earlier. We are really well positioned to compete in those, and they are areas we will continue to invest behind to grow. Specifically, ETFs have that feature built in—being very tax-aware and tax-efficient. We are a major player, as you know, and we will continue to build out the active side of that ETF business. SMAs have been the other way that people have played that. You have seen our growth; we now have nearly a $40 billion platform.

A major feature of that is tax optimization, and we are really winning in fixed income there, which has been smaller historically in the industry. Model portfolios are taking hold and are going to be another way for people to tax-optimize. This is largely a feature in the United States. To your question about regulatory changes, there is nothing that we see specifically on the horizon. Individual investors are speaking with their wallets by being hyper-focused here, and we think that is a good thing for Invesco Ltd.

William Raymond Katz: Great. Thank you very much.

Operator: Thank you. Our next question comes from Benjamin Elliot Budish with Barclays. Your line is open. You may ask your question. Hi, good morning, and thank you for taking the question. Just one for me this morning. I appreciate the clean expense guide, so at risk of upsetting that, I just wanted to ask: you have narrowed and trimmed the portfolio a little bit—Intelliflo, the India JV. As you look across the business, is there anywhere else that might make sense to trim and continue to focus, or are you happy with the set you have right now and we can continue to enjoy this cleaner expense guide?

Benjamin Elliot Budish: Thank you.

Laura Allison Dukes: The only thing I will point back to—and I said it earlier in my comments—is just a reminder that our partnership on the Canadian business is set to close at the end of the second quarter. That is about $19 billion in AUM. That was all built into my expense guidance, but that is a part of it. There is a modest negative impact to operating income of about $5 million to $10 million per quarter that will improve over time as we grow that subadvisory revenue.

Beyond that, in terms of our overall portfolio and profile, we feel like we have done a lot of hard work in simplifying where we operate, and we think we have a lot of opportunities to grow from here. I do not know that there is a lot more pruning to be done. We are in a lot of the high-growth markets where we want to be, and we have a well-set group of investment capabilities as we have been talking about today. We are very well positioned to continue to grow from here.

The simplification efforts are going to continue to focus more than anything on remixing our expense base, being really disciplined behind that expense base, continuing our efforts around the balance sheet and improving our leverage profile, and improving our capital return. I hate to say it is all blue skies from here—it will not be. What we are doing is making sure we are built to operate in any environment and create the momentum and the leverage we need behind that, and we feel good about the efforts that are already underway.

Andrew Ryan Schlossberg: The only thing I would add—and this maybe takes it back to the beginning of the call where we really emphasized our strategic focuses—in addition to the headline things that we did last year around repositioning the portfolio, divesting, and reinvesting, we have really simplified the company over the last few years. We have one fixed income platform now around the world, one equities platform around the world, one private markets platform around the world, and we have clarified for the organization how to operate in a simpler, cleaner way. That allowed us to be able to do the things that we did last year. It is just an example of the benefits from it.

To echo what Allison was saying, now we can put even more of our focus on growth.

Andrew Ryan Schlossberg: Operator, we have time for one more question.

Operator: Thank you. That question comes from Craig Siegenthaler with Bank of America. Your line is open. You may ask your question. Craig, your line is open. You may ask your question. Thank you. He is not responding. We will go ahead to Michael J. Cyprys with Morgan Stanley. Your line is open. You may ask your question.

Michael J. Cyprys: Hey, thanks for squeezing me in here. Just a question on AI. I was hoping you could update us on how you are using AI across the organization today, what use cases have been most impactful so far as well as some of the key learnings you have had, and how you might quantify any of the benefits that you are seeing. As you look out over the next couple of years, can you talk to some of the steps that you are taking to further embed AI throughout the organization and how you are thinking about the longer-term opportunity set and benefits? Thank you.

Andrew Ryan Schlossberg: Yes, thanks—an important question. We are treating AI across the firm as a way to accelerate capabilities that we have today. It has been a focus of augmenting the teams that we have and applying it in data analysis, things like content creation, and creating operational efficiency. One of the main things we have focused on the last year or two has been investing in tools for all of our teammates—the 7,500 people that we have around the world. Not just investing in the tools, but in education and how to apply them to process adoption across AI and GenAI. It gets applied to large-scale applications and to people's BAU.

We estimate that close to 80% of our employees, in some way, shape, or form, are using these tools every day in their business activities. To your specific question about big use cases, they are either in use or in development across the entire company, with an emphasis on enabling outputs. We have use cases in the investment process and around client growth—things like investment research aggregation, sell signal adaptation, performance analytics, client communications—all those sorts of things. We are really trying to couple that with all the things that our clients expect from us, which is to protect their data and to protect the integrity around it. We are moving fast but cautiously, too.

Michael J. Cyprys: Great. Thank you.

Operator: At this time, I will turn the call back over to the speakers.

Andrew Ryan Schlossberg: Thanks, Operator. In closing, we are pleased with the continued strong results this quarter. As we discussed, we advanced several strategically important investment capabilities and vehicles, with many reaching record assets under management. We did this with discipline, focus, and the benefits of scale, and we are generating meaningful operating leverage and improving margins. We will continue to stay focused on our highly defined growth strategy with an emphasis on relentless execution, client-focused innovation, and teamwork across the firm. Thanks, everyone, for joining the call today. Please reach out to our Investor Relations team for any additional questions. We appreciate your interest in Invesco Ltd. and look forward to speaking with you all again very soon.

Operator: This concludes today's conference. We thank you for your participation. At this time, you may disconnect your lines.