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Extraction Summary
3
People
4
Organizations
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Locations
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Events
3
Relationships
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Quotes
Document Information
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Investment conference summary page
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Summary
This document from a 2016 conference summarizes investor sentiment on what would increase interest in IVZ (Invesco) stock, with consistent organic growth being the top factor. It also details IVZ's business outlook, including its confidence in achieving 3-5% organic growth, its fixed income exposure, and its position regarding regulatory changes. Additionally, it provides a brief on a presentation by Eaton Vance (EV) executives regarding their performance and the potential impact of tax and regulatory changes.
People (3)
| Name | Role | Context |
|---|---|---|
| Thomas Faust | ||
| Laurie Hylton | ||
| Dan Cataldo |
Organizations (4)
| Name | Type | Context |
|---|---|---|
| IVZ | ||
| Eaton Vance (EV) | ||
| BofA Merrill Lynch Global Research | ||
| Bank of America Merrill Lynch |
Timeline (1 events)
2016 Future of Financials Conference
Relationships (3)
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Key Quotes (3)
"IVZ is confident it can achieve its 3-5% organic growth rate driven by three main pillars."Source
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Quote #1
"Regarding potential changes from the election, while very early, management thinks that whatever happens to the DOL Fiduciary Rule (delay, modify, etc.), the industry has already been shifting in a fiduciary direction, and they expect that to continue..."Source
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Quote #2
"Management reported relatively positive F4Q flows, expects organic growth to hold up well given its mix and performance, and does not expect a significant change in the DOL impact from the election, but would expect a significant benefit from a lower US corporate tax rate."Source
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Quote #3
Full Extracted Text
Complete text extracted from the document (2,795 characters)
Chart 56: What would get you more interested in investing in IVZ stock?
60%
48%
50%
50%
40%
38%
38%
30%
20%
10%
10%
10%
5%
0%
0%
0%
0%
Consistent above
A more favorable
Less regulation for
More operating
Longer term FX
average organic
market backdrop
the industry
leverage
hedges
growth
A more favorable
Less regulation for
More operating
Longer term FX
average organic
market backdrop
the industry
leverage
hedges
growth
Source: BofA Merrill Lynch Global Research
•
IVZ is confident it can achieve its 3-5% organic growth rate driven by three main
pillars. The first being the ongoing search for yield driving fixed income
flows/allocation which IVZ has benefitted from and should continue to benefit given
their strong performance, distribution, and product set. The second being ongoing
"barbelling" by clients which drives flows into passive and alternatives, two
products IVZ has leadership in. Lastly, IVZ sees opportunity in its institutional
channel, particularly in Asia which has had notable momentum.
IVZ is confident it can achieve its 3-5% organic growth rate driven by three main
pillars. The first being the ongoing search for yield driving fixed income
flows/allocation which IVZ has benefitted from and should continue to benefit given
their strong performance, distribution, and product set. The second being ongoing
"barbelling" by clients which drives flows into passive and alternatives, two
products IVZ has leadership in. Lastly, IVZ sees opportunity in its institutional
channel, particularly in Asia which has had notable momentum.
•
Given the run up in rates, IVZ touched upon its fixed income exposure and what
might be at risk of underperformance/outflows. IVZ mentioned roughly $100B of its
AUM or ~13% was in fixed income that didn't include short duration or floating
rate, a number they feel is relatively small compared to some of its peers.
Additionally, within that $100B a major portion had been underperforming because
of strategic shorter duration, which in a rising rate environment should lead to
outperformance and potentially negate some of the flow headwind.
Given the run up in rates, IVZ touched upon its fixed income exposure and what
might be at risk of underperformance/outflows. IVZ mentioned roughly $100B of its
AUM or ~13% was in fixed income that didn't include short duration or floating
rate, a number they feel is relatively small compared to some of its peers.
Additionally, within that $100B a major portion had been underperforming because
of strategic shorter duration, which in a rising rate environment should lead to
outperformance and potentially negate some of the flow headwind.
•
Regarding potential changes from the election, while very early, management thinks
that whatever happens to the DOL Fiduciary Rule (delay, modify, etc.), the industry
has already been shifting in a fiduciary direction, and they expect that to continue,
though the pace could vary depending on the eventual outcome. Additionally, IVZ is
relatively well positioned given its diversification among ETF/passive and active
strategies, as well as similar regulations in Europe that it has managed through. In
terms of a lower corporate tax rate, that would not have much impact to IVZ given
its Bermuda domicile.
Regarding potential changes from the election, while very early, management thinks
that whatever happens to the DOL Fiduciary Rule (delay, modify, etc.), the industry
has already been shifting in a fiduciary direction, and they expect that to continue,
though the pace could vary depending on the eventual outcome. Additionally, IVZ is
relatively well positioned given its diversification among ETF/passive and active
strategies, as well as similar regulations in Europe that it has managed through. In
terms of a lower corporate tax rate, that would not have much impact to IVZ given
its Bermuda domicile.
Eaton Vance (EV), B-3-7, Underperform
•
Presenting from EV was Thomas Faust, CEO, Laurie Hylton, CFO, and Dan Cataldo,
Head of IR and Treasurer. Management reported relatively positive F4Q flows,
expects organic growth to hold up well given its mix and performance, and does not
expect a significant change in the DOL impact from the election, but would expect
a significant benefit from a lower US corporate tax rate.
Presenting from EV was Thomas Faust, CEO, Laurie Hylton, CFO, and Dan Cataldo,
Head of IR and Treasurer. Management reported relatively positive F4Q flows,
expects organic growth to hold up well given its mix and performance, and does not
expect a significant change in the DOL impact from the election, but would expect
a significant benefit from a lower US corporate tax rate.
•
When asked what would get you more interested in EV's stock, the majority of
investors were fairly split between better high fee flows and ETMFs taking off
(38%/31% respectively). Investors also thought increased capital return was
When asked what would get you more interested in EV's stock, the majority of
investors were fairly split between better high fee flows and ETMFs taking off
(38%/31% respectively). Investors also thought increased capital return was
Bank of America
Merrill Lynch
Merrill Lynch
2016 Future of Financials Conference | 17 November 2016 37
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