Invesco Ltd

Good morning, and thank you all for joining us. As a reminder, this conference call and the related presentation may include forward-looking statements, which reflect management's expectations about future events and overall operating plans and performance. These forward-looking statements are made as of today and are not guaranteed. They involve risks, uncertainties, and assumptions, and there can be no assurance that actual results will not differ materially from our expectations. For a discussion of these risks and uncertainties, please see the risks described in our most recent Form 10-K and subsequent filings with the SEC. Investor makes no obligation to update any forward-looking statements. We may also discuss non-GAAP financial measures during today's call. Reconciliations of these non-GAAP financial measures may be found at the end of our earnings presentation.

Welcome to Invesco's second quarter results conference call. All participants will be in a listen-only mode until the question and answer session. At that time, to ask a question, press star 1. This call will last one hour. To allow more participants to ask questions, only one question and a follow-up can be submitted per participant. Today's conference is being recorded. If you have any objections, you may disconnect at this time. Now I would like to turn the call over to your speakers for today, Marty Flanagan, President and CEO of Invesco, and Allison Dukes, Chief Financial Officer. Mr. Flanagan, you may begin.

Thank you, thank you, operator, and thank you, everybody, for joining us. We've reached the halfway point in the year, and we're continuing to see strong momentum in our business, as you can see from the results that were reported this morning. But before I begin, I'd like to take a minute to recognize the hard work of our team at Invesco. Like most everybody, our employees have been working in a work-from-home or hybrid environment for more than a year now. And they've achieved these results in a very challenging environment. I'd like to thank the team for their dedicated focus and adaptability during this time. And with the success of the virus, many of us have been coming back to the office and working together for the last few months. And I can tell you it's good to see our colleagues once again. We are at different stages of reopening around the globe, and one thing that I hear from everybody that is able to get back to the office is how great it is to see one another and work together. And I will say we're at our best when we're working together, collaborating, and innovating. And I'm excited about the future as we continue to open our offices to more employees and welcome them back. And as always, we'll follow the status of COVID and local guidelines as we transition back to the office, meeting client needs, helping them ensure continued health and well-being of our employees. So now let me turn to the results. And if you're so inclined to follow the presentation, I'm going to start on slide three, which is the highlights for the quarter. We achieved a new record in the second quarter for long-term net inflows totaling $31 billion. This follows net inflows of $24.5 billion last quarter and nearly $18 billion in the second half of last year. Growth was led by net inflows into institutional ETFs, fixed income, and for this alternative capabilities. And as you can see on slide three, the key capability areas We have scale, investment readiness, competitive strength, growth again in the quarter. These are areas where investment performance is strong. We're highly competitive and well-positioned for growth. Looking at our ETFs, excluding the Qs, it generated net long-term inflows of $12 billion during the quarter. Net long-term inflows from alternatives during the quarter were $4.3 billion, including strength in our private markets business. We launched two CLOs during the period, raising a billion dollars, and generated net inflows into our real estate business of a billion dollars. We continue to focus and invest in our alternative capabilities of space, where we also see the benefit of our partnership with MassMutual, which we highlighted last quarter. MassMutual has committed over a billion dollars to various alternative strategies, materially increasing the speed with which we can get to market for the benefit of our clients. We continue to innovate with strategies for retail investors through the launch of products such as INREIT and the partnership we announced with UBS, in which we will provide bespoke global property investment services for management clients of UBS in Switzerland, other parts of EMEA, and Asia. We also have $5 billion in direct real estate capital available for deployment. We had net long-term inflows of $8.8 billion into active fixed income, and within active global equities, our $52 billion developing markets fund, a key capability that came with the Oppenheimer accommodation, continued to see net inflows of nearly $1 billion during the quarter. Second quarter flows included net long-term inflows of $3 billion from later China, and our Chinese joint venture continues to be a source of strength and differentiation for us as an organization. In addition, our solutions enabled distribution pipeline accounts for 35% of the pipeline at order end, this following the funding of a large asset mandate from Australia in the second quarter, which was enabled by our solutions team. Allison will provide more information in a moment on flows, the pipeline results in the quarter, including the continued progress towards our net savings target. But I would note that growth we are experiencing is driving positive operating leverage, producing an adjusted operating margin of 41.5% for the quarter. Strong cash flows being generated from our business improved our cash position, helping build a stronger balance sheet and improving our financial flexibility for the future. Investor scale, investment readiness, competitive strength, position as well going forward, and we continue to focus our efforts on delivering positive outcomes for clients while driving. With that, I will turn it over to Alice and Mark for the results in greater detail.