Invesco Ltd. plans to curtail spending on employee compensation as the asset manager aims to save US$200 million annually by the end of 2022.
As much as 60 per cent of the expected savings will come from compensation, executives said Tuesday on a conference call to discuss third-quarter results. About US$150 million of the expense reductions will occur by the end of next year.
“It is primarily realigning our workforce to lower-cost locations and reallocating and reorganizing across our business to make sure we’re investing in our highest capabilities,” Chief Financial Officer Allison Dukes said on the call.
Shares of Invesco climbed 3.6 per cent to US$14.29 at 11:08 a.m. in New York. The stock had dropped 23 per cent this year through Monday.
Invesco, with about 8,700 employees, is facing long-term challenges as consolidation among asset managers squeezes fees. Nelson Peltz’s Trian Fund Management built stakes in Invesco and rival Janus Henderson Group Plc as the activist investor pushes for more industry mergers.
Net inflows into long-term investment products at Atlanta-based Invesco totaled US$7.8 billion in the third quarter, compared with net outflows of US$11.1 billion in the same period a year earlier. Invesco manages about US$1.2 trillion of assets.
Invesco posted adjusted earnings of 53 cents a share, beating the average estimate of 48 cents by analysts in a Bloomberg survey. Revenue of US$1.5 billion matched estimates.