Invesco Ltd. (NYSE:IVZ) Q1 2023 Earnings Call Transcript

Unidentified Analyst: Hi, all. Thanks for taking the question. This is Luke on Alex’s behalf. As part of Andrew’s announcement, you guys highlighted a number of other operational realignments. Can you just help frame the operational benefits of these and any potential cost saving opportunities that could be realized? And over what period of time do you think that could occur? Thanks.

Andrew Schlossberg: Yeah. So I’ll pick up on some of the benefits, and I’ll let Allison chime in as well here. So there’s a few, and let me start at the top. We definitely believe it’s going to help us accelerate the execution of the strategy and the strategic priorities we’ve been outlining. We think it’s going to help us internally streamline some decision-making, simplify ourselves and be able to move at pace, and that’s what’s required by our clients right now to move at pace and to deliver good results and quality service. We think that these changes will also help us enhance our investment quality over time. And ultimately, we think it’s going to help us further leverage the global operating platform and the scale that we’ve built over time. Allison?

Allison Dukes: Yeah. Look, I wouldn’t point to cost savings just yet. There are a lot of ins and outs and puts and takes as we’re thinking about reorganizing around these changes, but really chiming in on Andrew’s comments. We’re very focused on making the organizational — organization simpler and more streamlined so that as we gain scale, we can generate additional operating leverage and really starting to get ourselves organized in a way that we do not have to grow expenses too much as markets improve. But more importantly, as we grow organically and create that organic fee rate growth. So I think at this point, we think these changes are going to be very helpful, and they organize the company in a more simple way. And we’ll look forward to sharing more as we continue working away.

Marty Flanagan : And let me just wrap up. So the other really important thing and we’ve been talking about it here today and previously, this will absolutely facilitate being able to reallocate assets or dollars in time and expertise to areas of growth. I have a high degree of confidence and Andrew and Allison and the team, I said that before, is going to be the most experience and talented team that Invesco has ever had and a high degree of confidence in the future and what they’re going to be executing against. So it’s really very exciting for clients, employees and shareholders very importantly. So with that, thank you very much, and we’ll talk to you in July.

Allison Dukes: Thank you.

Andrew Schlossberg: Thank you.

Operator: Thank you. And that concludes today’s conference. You may all disconnect at this time. Speakers, you may stand by for post conference.