Invesco Ltd (IVZ) 2010年年度報告「NYSE」.pdf

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1、 1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington,D.C.20549 Form 10-K (Mark One)?ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31,2010 OR?TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE

2、ACT OF 1934 For the transition period from to Commission file number 1-13908 Invesco Ltd.(Exact Name of Registrant as Specified in Its Charter)Bermuda 98-0557567(State or Other Jurisdiction of Incorporation or Organization)(I.R.S.Employer Identification No.)1555 Peachtree Street,NE,Suite 1800,Atlant

3、a,GA 30309(Address of Principal Executive Offices)(Zip Code)Registrants telephone number,including area code:(404)892-0896 Securities registered pursuant to Section 12(b)of the Act:Title of Each Class Name of Exchange on Which Registered Common Shares,$0.20 par value per share New York Stock Exchang

4、e Securities registered pursuant to Section 12(g)of the Act:None Indicate by check mark if the registrant is a well-known seasoned issuer,as defined in Rule 405 of the Securities Act.Yes?No?Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(

5、d)of the Act.Yes?No?Indicate by check mark whether the registrant:(1)has filed all reports required to be filed by Section 13 or 15(d)of the Securities Exchange Act of 1934 during the preceding 12 months(or for such shorter period that the registrant was required to file such reports),and(2)has been

6、 subject to such filing requirements for the past 90 days.Yes?No?Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site,if any,every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the pr

7、eceding 12 months(or for such shorter period that the registrant was required to submit and post such files).Yes?No?Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein,and will not be contained,to the best of registrants knowledge,

8、in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.?Indicate by check mark whether the registrant is a large accelerated filer,an accelerated filer,a non-accelerated filer,or a smaller reporting company.See the def

9、initions of“large accelerated filer,”“accelerated filer”and“smaller reporting company”in Rule 12b-2 of the Exchange Act.(Check one):Large accelerated filer?Accelerated filer?Non-accelerated filer?Smaller reporting company?(Do not check if a smaller reporting company)Indicate by check mark whether th

10、e registrant is a shell company(as defined in Rule 12b-2 of the Exchange Act.)Yes?No?At June 30,2010,the aggregate market value of the voting stock held by non-affiliates was$6.3 billion,based on the closing price of the registrants Common Shares,par value U.S.$0.20 per share,on the New York Stock E

11、xchange.At January 31,2011,the most recent practicable date,the number of Common Shares outstanding was 460,382,514.DOCUMENTS INCORPORATED BY REFERENCE The registrant will incorporate by reference information required in response to Part III,Items 10-14 in its definitive Proxy Statement for its annu

12、al meeting of shareholders,to be filed with the Securities and Exchange Commission within 120 days after December 31,2010.2 TABLE OF CONTENTS We include cross references to captions elsewhere in this Annual Report on Form 10-K,which we refer to as this“Report,”where you can find related additional i

13、nformation.The following table of contents tells you where to find these captions.Page Special Cautionary Note Regarding Forward-Looking Statements.3PART I Item 1.Business.4Item 1A.Risk Factors.10Item 1B.Unresolved Staff Comments.19Item 2.Properties.19Item 3.Legal Proceedings.19Item 4.Submission of

14、Matters to a Vote of Security Holders.19PART II Item 5.Market for Registrants Common Equity,Related Stockholder Matters and Issuer Purchases of Equity Securities.20Item 6.Selected Financial Data.22Item 7.Managements Discussion and Analysis of Financial Condition and Results of Operations.23Item 7A.Q

15、uantitative and Qualitative Disclosures About Market Risk.75Item 8.Financial Statements and Supplementary Data.79Item 9.Changes in and Disagreements With Accountants on Accounting and Financial Disclosure.143Item 9A.Controls and Procedures.143Item 9B.Other Information.144PART III Item 10.Directors,E

16、xecutive Officers and Corporate Governance.145Item 11.Executive Compensation.146Item 12.Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.146Item 13.Certain Relationships and Related Transactions,and Director Independence.147Item 14.Principal Accountant F

17、ees and Services.147PART IV Item 15.Exhibits and Financial Statement Schedules.148 3 SPECIAL CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS This Report,the documents incorporated by reference herein,other public filings and oral and written statements by us and our management,may include state

18、ments that constitute“forward-looking statements”within the meaning of the United States securities laws.These statements are based on the beliefs and assumptions of our management and on information available to us at the time such statements are made.Forward-looking statements include information

19、concerning possible or assumed future results of our operations,expenses,earnings,liquidity,cash flows and capital expenditures,industry or market conditions,assets under management,acquisition activities and the effect of completed acquisitions,debt levels and our ability to obtain additional finan

20、cing or make payments on our debt,legal and regulatory developments,demand for and pricing of our products and other aspects of our business or general economic conditions.In addition,when used in this Report,the documents incorporated by reference herein or such other documents or statements,words

21、such as“believes,”“expects,”“anticipates,”“intends,”“plans,”“estimates,”“projects,”“forecasts,”and future or conditional verbs such as“will,”“may,”“could,”“should,”and“would,”and any other statement that necessarily depends on future events,are intended to identify forward-looking statements.Forward

22、-looking statements are not guarantees of performance or other outcomes.They involve risks,uncertainties and assumptions.Although we make such statements based on assumptions that we believe to be reasonable,there can be no assurance that actual results will not differ materially from our expectatio

23、ns.We caution investors not to rely unduly on any forward-looking statements.The following important factors,and other factors described elsewhere in this Report or incorporated by reference into this Report or contained in our other filings with the U.S.Securities and Exchange Commission(SEC),among

24、 others,could cause our results to differ materially from any results described in any forward-looking statements:variations in demand for our investment products or services,including termination or non-renewal of our investment advisory agreements;significant changes in net asset flows into or out

25、 of the accounts we manage or declines in market value of the assets in,or redemptions or other withdrawals from,those accounts;enactment of adverse state,federal or foreign legislation or changes in government policy or regulation(including accounting standards)affecting our operations,our capital

26、requirements or the way in which our profits are taxed;significant fluctuations in the performance of debt and equity markets worldwide;exchange rate fluctuations,especially as against the U.S.Dollar;the effect of economic conditions and interest rates in the U.S.or globally;our ability to compete i

27、n the investment management business;the effect of consolidation in the investment management business;limitations or restrictions on access to distribution channels for our products;our ability to attract and retain key personnel,including investment management professionals;the investment performa

28、nce of our investment products;our ability to acquire and integrate other companies into our operations successfully and the extent to which we can realize anticipated cost savings and synergies from such acquisitions;changes in regulatory capital requirements;our debt and the limitations imposed by

29、 our credit facility;the effect of failures or delays in support systems or customer service functions,and other interruptions of our operations;the occurrence of breaches and errors in the conduct of our business,including any failure to properly safeguard confidential and sensitive information;the

30、 execution risk inherent in our ongoing company-wide transformational initiatives;the effect of political or social instability in the countries in which we invest or do business;4 the effect of terrorist attacks in the countries in which we invest or do business and the escalation of hostilities th

31、at could result therefrom;war and other hostilities in or involving countries in which we invest or do business;and adverse results in litigation,including private civil litigation related to mutual fund fees and any similar potential regulatory or other proceedings.Other factors and assumptions not

32、 identified above were also involved in the derivation of these forward-looking statements,and the failure of such other assumptions to be realized may also cause actual results to differ materially from those projected.For more discussion of the risks affecting us,please refer to Part I,Item 1A,“Ri

33、sk Factors.”You should consider the areas of risk described above in connection with any forward-looking statements that may be made by us and our businesses generally.We expressly disclaim any obligation to update any of the information in this or any other public report if any forward-looking stat

34、ement later turns out to be inaccurate,whether as a result of new information,future events or otherwise.For all forward-looking statements,we claim the“safe harbor”provided by Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.PART I In this Annual Repo

35、rt on Form 10-K,unless otherwise specified,the terms“we,”“our,”“us,”“company,”“Invesco,”and“Invesco Ltd.”refer to Invesco Ltd.,a company incorporated in Bermuda,and its subsidiaries.Item 1.Business Introduction Invesco is a leading independent global investment manager,dedicated to helping investors

36、 worldwide achieve their financial objectives.By delivering the combined power of our distinctive investment management capabilities,Invesco provides a comprehensive range of investment strategies and vehicles to our retail,institutional and high-net-worth clients around the world.Operating in more

37、than 20 countries,Invesco had$616.5 billion in assets under management(AUM)as of December 31,2010.The key drivers of success for Invesco are long-term investment performance,effective distribution relationships,and high-quality client service delivered across a diverse spectrum of investment managem

38、ent capabilities,distribution channels,geographic areas and market exposures.By achieving success in these areas,we seek to generate competitive investment results,positive net flows,increased AUM and associated revenues.We are affected significantly by market movements,which are beyond our control;

39、however,we endeavor to mitigate the impact of market movement by maintaining broad diversification across asset classes,client domiciles and geographies.We measure relative investment performance by comparing our investment capabilities to competitors products,industry benchmarks and client investme

40、nt objectives.Generally,distributors,investment advisors and consultants take into consideration longer-term investment performance(e.g.,three-year and five-year performance)in their selection of investment product and manager recommendations to their clients,although shorter-term performance may al

41、so be an important consideration.Third-party ratings may also influence client investment decisions.Quality of client service is monitored in a variety of ways,including periodic client satisfaction surveys,analysis of response times and redemption rates,competitive benchmarking of services and feed

42、back from investment consultants.Invesco Ltd.is organized under the laws of Bermuda,and our common shares are listed and traded on the New York Stock Exchange under the symbol“IVZ.”We maintain a Web site at .(Information contained on our Web site shall not be deemed to be part of,or be incorporated

43、into,this document).Strategy The company focuses on four key strategic priorities that are designed to strengthen our business over time and help ensure our long-term success:Achieve strong investment performance over the long term for our clients;Deliver our investment capabilities anywhere in the

44、world to meet our clients needs;5 Harness the power of our global operating platform by continuously improving our processes and procedures and further integrating the support structures of our business globally;and Perpetuate a high-performance organization by driving greater transparency,accountab

45、ility and execution at all levels.Since 2005 Invesco has taken a number of steps to further unify our business and present the organization as a single firm to our clients around the world.We believe these changes have strengthened Invescos ability to operate more efficiently and effectively as an i

46、ntegrated,global organization.Since we take a unified approach to our business,we present our financial statements and other disclosures under the single operating segment“investment management.”Recent Developments On June 1,2010,Invesco acquired Morgan Stanleys retail asset management business,incl

47、uding Van Kampen Investments.The addition of this diversified business brought$114.6 billion in AUM across equity,fixed income and alternative asset classes(including mutual funds,variable insurance funds,separate accounts and unit investment trusts(UITs).Furthermore,Invesco gained the experience,kn

48、owledge and expertise of nearly 600 investment,distribution and operations support professionals globally.This transformational combination:Expanded the depth and breadth of our investment strategies,enabling us to offer an even more comprehensive range of investment capabilities and vehicles to our

49、 clients around the world;Enhanced our ability to serve U.S.clients by positioning Invesco among the leading U.S.investment managers by AUM,diversity of investment teams and client profiles;Deepened Invescos relationships with clients and strengthened our overall distribution capabilities;and Furthe

50、r strengthened our position in the Japanese investment management market.Our goal from the day we announced the transaction was to complete the preparatory integration work prior to close.With a focused effort across Invesco,we accomplished our goal and were able to deliver the value of the combined

51、 organization to clients from Day 1.Throughout the second half of 2010,we saw strong momentum in the combined business.In addition to our acquisition of Morgan Stanleys retail asset management business,Invescos commitment to a multi-year strategy set a firm foundation for the companys many achieveme

52、nts throughout the year.During 2010:Relative investment performance remained strong across the enterprise,with 68%of ranked assets*performing ahead of peers on a 3-year basis at year end;We focused on strengthening and deepening relationships with clients in key markets.For example,we maintained a m

53、arket share ranking in the top three on all major platforms in the U.K.retail market and strengthened relationships with leading financial institutions in all U.S.retail channels,where 70%of AUM is with top 20 distributors;We expanded our presence and improved our competitive advantage as a global i

54、nvestment manager in fast-growing,high-priority markets and segments;We resumed our share repurchase program,purchasing 9.4 million shares for$192.2 million;and We maintained strong inflows at Invesco PowerShares,and expanded our offering of intelligent exchange-traded funds(ETFs)within the Canadian

55、 marketplace through an innovative suite of mutual funds._ *As of December 31,2010,68%of ranked assets were performing ahead of peers on a 3-year basis.Of total Invesco AUM,61%were ranked at year-end.See Part II,Item 7,Managements Discussion and Analysis of Financial Condition and Results of Operati

56、ons-Investment Capabilities Performance Overview,for more discussion of AUM rankings by investment capability.6 Together,these efforts resulted in positive net flows for our business in 2010.Adjusted operating margin improved to 34.5%in 2010 from 28.5%in 2009.See Part II,Item 7,“Managements Discussi

57、on and Analysis of Financial Condition and Results of Operations Schedule of Non-GAAP Information”for a reconciliation of operating income to net operating income,and by calculation,a reconciliation of operating margin to adjusted operating margin,and important additional disclosures.Throughout 2010

58、,we continued to execute our long-term strategy,making disciplined capital and resource allocation decisions,which we believe further improved our ability to serve our clients,reinforced our reputation as a premier global investment manager,and helped to deliver competitive levels of operating incom

59、e and margins as we progressed through the year.In addition,we took steps to further strengthen our financial position and augment our capital flexibility through the execution of a new credit facility and the maintenance of a balanced approach to capital management.We have received credit ratings o

60、f A3/Stable and A-/Stable from Moodys and Standard&Poors credit rating agencies,respectively,as of the date of this Annual Report on Form 10-K.In the fourth quarter,Standard&Poors increased Invescos enterprise risk management(ERM)rating from“adequate”to“strong,”making Invesco one of only four public

61、ly rated investment managers with a“strong”ERM designation.Certain Demographic and Industry Trends Demographic and economic trends around the world continue to transform the investment management industry and our business and underscore the need to be well-diversified with broad capabilities globall

62、y and across asset classes:There is an increasing number of investors who seek external professional advice and investment managers to help them reach their financial goals.As the“baby boomer”generation continues to mature,there is an increasingly large segment of the world population that is reachi

63、ng retirement age.Economic growth in emerging market countries has created a large and rapidly expanding middle class and high net worth population with accelerating levels of wealth.As a result,globally,there is a high degree of demand for an array of investment solutions that span the breadth of i

64、nvestment capabilities,with a particular emphasis on savings vehicles for retirement.We believe Invesco,as one of the few truly global,independent investment managers,is very well-positioned to attract these retirement assets through its enduring products that are focused on long-term investment per

65、formance.We have seen increasing demand from clients for alpha and beta to be separated as investment strategies in the investment management industry.(“Alpha”is defined as excess return attributable to a manager,and“beta”refers to the volatility in returns versus an underlying benchmark.)This trend

66、 reflects how clients are differentiating between low-cost beta solutions such as passive,index and ETF products and higher-priced alpha strategies such as those offered by many alternative products.Investors are increasingly seeking to invest outside their domestic markets.They seek firms that oper

67、ate globally and have investment expertise in markets around the world.Although the U.S.and Europe are currently the two largest markets for financial assets by a wide margin,other markets in the world,such as China and India,are rapidly growing.As these population-heavy markets mature,investment ma

68、nagers that are truly global will be in the best position to capture this growth.Additionally,population age differences between emerging and developed markets will result in differing investment needs and horizons among countries.Asset allocation and pension type also differ substantially among cou

69、ntries.Invesco has a meaningful and expanding market presence in many of the worlds fastest growing and wealthiest regions,including the U.S.,Canada,Western Europe and the UK,the Middle East and Asia-Pacific.Our strong U.S.presence and growing global presence represent significant long-term growth p

70、rospects for our business.The global trend towards the provision of defined contribution retirement plans continues,although significant opportunity remains for managers to increase defined benefit market share.Invesco is well positioned to capture the opportunities created by global demographic and

71、 industry trends.Through a variety of economic and market environments,our progress over the past five years has significantly strengthened our competitive position.Our multi-year strategy is designed to leverage our global presence,our distinctive worldwide investment management capabilities and ou

72、r talented people to further grow our business and ensure our long-term success.7 Investment Management Capabilities Supported by a global operating platform,Invesco delivers a comprehensive array of investment capabilities and services to retail,institutional and high-net-worth investors on a globa

73、l basis.We have a significant presence in the institutional and retail segments of the investment management industry in North America,Europe and Asia-Pacific,serving clients in more than 150 countries.We believe that the proven strength of our distinct and globally located investment centers and th

74、eir well-defined investment disciplines provide us with a competitive advantage.There are few independent investment managers with teams as globally diverse as Invescos and with the same breadth and depth of investment capabilities and vehicles.We offer multiple investment objectives within the vari

75、ous asset classes and products that we manage.Our asset classes,broadly defined,include money market,fixed income,balanced,equity and alternatives.Approximately 48%of our AUM as of December 31,2010,were invested in equity securities(December 31,2009:41%),and approximately 52%was invested in fixed in

76、come and other investments(December 31,2009:59%).The following table sets forth the investment objectives,sorted by asset class,which we manage:Investment Objectives by Asset Class Money Market Fixed Income Balanced Equity Alternatives Cash Plus Bank Loans Asset Allocation Enhanced Index/Quantitativ

77、e Absolute Return Government/Treasury Convertibles Global Global Asian Direct Real Estate Prime Core/Core Plus Single Country International Commodities Taxable Emerging Markets Target Date Large Cap Core Currencies Tax-Free Enhanced Cash Target Risk Large Cap Growth European Direct Real Estate Gover

78、nment Bonds Large Cap Value Financial Structures High-Yield Bonds Mid Cap Core Global Macro Intermediate Term Mid Cap Growth Global REITS International/Global Mid Cap Value Private Capital-Direct Investment Grade Credit Regional/Single Country Private Capital-Fund of Funds Municipal Bonds Sector Fun

79、ds Risk Premia Capture Passive/Enhanced Small Cap Core U.S.Direct Real Estate Short Term Small Cap Growth U.S.REITS Stable Value Small Cap Value Structured Securities(ABS,MBS,CMBS)The following table sets forth the categories of investment vehicles sold through our three principal distribution chann

80、els:Investment Vehicles by Distribution Channel Retail Institutional Private Wealth Management Closed-end Mutual Funds Collective Trust Funds Exchange-Traded Funds Exchange-Traded Funds Exchange-Traded Funds Managed Accounts Individual Savings Accounts Institutional Separate Accounts Mutual Funds In

81、vestment Companies with Variable Capital Private Capital Funds Private Capital Funds Investment Trusts Separate Accounts Open-end Mutual Funds Separately Managed Accounts Unit Investment Trusts Variable Insurance Funds 8 Asia7%Continental Europe6%U.K.15%Canada5%U.S.67%Alternative12.8%Fixed Income21.

82、3%Money Market11.1%Balanced7.1%Equity47.7%Private Wealth Management3%Institutional36%Retail61%ETF,UIT,and Passive13%Non-Passive87%One of Invescos greatest competitive strengths is the diversification in its AUM by client domicile,distribution channel and asset class.Our distribution network has gath

83、ered assets of 61%retail,36%institutional,and 3%Private Wealth Management clients as of December 31,2010.32.6%of client assets under management are outside the U.S.,and we serve clients in more than 150 countries.The following tables present a breakdown of AUM by client domicile,distribution channel

84、 and asset class as of December 31,2010.Additionally,the fourth table below illustrates the split of our higher-fee non-passive AUM as compared to our lower-fee ETF,UIT,and passive AUM.AUM Diversification By Client Domicile By Distribution Channel By Asset Class Non-Passive/Passive ($billions)1-Yr C

85、hange U.S.$415.4 41.2%Canada$27.9 (3.8)%U.K.$92.1 8.5%Continental Europe$35.3 44.7%Asia$45.8 69.0%Total$616.5 34.2%($billions)1-Yr Change Retail$378.4 58.1%Institutional$221.1 7.9%PWM$17.0 11.8%Total$616.5 34.2%($billions)1-Yr Change Equity$294.1 52.6%Balanced$43.5 9.0%Money Market$68.3 (18.2)%Fixed

86、 Income$131.9 73.3%Alternative$78.7 16.9%Total$616.5 34.2%($billions)1-Yr Change Non-Passive$535.7 31.8%ETF,UIT,and Passive$80.8 52.5%Total$616.5 34.2%9 See Part II,Item 8,“Financial Statements and Supplementary Data Note 18,Geographic Information,”for a geographic breakdown of our consolidated oper

87、ating revenues for the years ended December 31,2010,2009 and 2008.Distribution Channels Channel refers to the distribution channel from which the AUM originated.Retail AUM arose from client investments into funds available to the public with shares or units.Institutional AUM originated from individu

88、al corporate clients,endowments,foundations,government authorities,universities,or charities.Private Wealth Management AUM arose from high net worth client investments.Retail Invesco is a significant provider of retail investment solutions to clients in all major markets:Invesco in the U.S.,Invesco

89、Trimark in Canada,Invesco Perpetual in the U.K.,Invesco in Europe and Asia,and Invesco PowerShares(for our ETF products).Additionally,Invesco is now also a market leading sponsor of UIT products as a result of the acquisition of Morgan Stanleys retail asset management business.Collectively,the retai

90、l investment management teams managed assets of$378.4 billion as of December 31,2010.We offer retail products within all of the major asset classes(money market,fixed income,balanced,equity and alternatives).Our retail products are primarily distributed through third-party financial intermediaries,i

91、ncluding traditional broker-dealers,fund“supermarkets,”retirement platforms,financial advisors,banks,insurance companies and trust companies.The U.K.,U.S.and Canadian retail operations rank among the largest by AUM in their respective markets.As of December 31,2010,Invesco Perpetual was the No.1 ret

92、ail fund provider in the U.K.;Invescos U.S.retail business was the 9th largest non-proprietary fund complex in the U.S.by long-term assets,including the Invesco Powershares franchise;and Invesco Trimark was the 9th largest retail fund manager in Canada by long-term assets.Invesco Great Wall,our join

93、t venture in China,was one of the largest Sino-foreign managers of equity products in China,with AUM of approximately$7.2 billion as of December 31,2010.Invesco PowerShares adds a leading set of ETF products(with$55.7 billion in AUM and 176 exchange-traded funds as of December 31,2010)to the extensi

94、ve choices we make available to our retail investors.We provide our retail clients with one of the industrys most robust and comprehensive product lines.Institutional We provide investment solutions to institutional investors globally,with a major presence in the U.S.,U.K.,Continental Europe and Asi

95、a-Pacific with$221.1 billion in AUM as of December 31,2010.We offer a broad suite of domestic and global products,including traditional equities,structured equities,fixed income(including money market funds for institutional clients),real estate,private equity,distressed equities,financial structure

96、s and absolute return strategies.Regional sales forces distribute our products and provide services to clients and intermediaries around the world.We have a diversified client base that includes major public entities,corporations,unions,non-profit organizations,endowments,foundations,pension funds a

97、nd financial institutions.Invescos institutional money market funds serve some of the largest financial institutions and corporations in the world.Private Wealth Management Through Atlantic Trust,Invesco provides high-net-worth individuals and their families with a broad range of personalized and so

98、phisticated wealth management services,including financial counseling,estate planning,asset allocation,investment management(including use of third-party managed investment products),private equity,trust,custody and family office services.Atlantic Trust also provides investment management services t

99、o foundations and endowments.Atlantic Trust obtains new clients through referrals from existing clients,recommendations from other professionals serving the high-net-worth market,such as attorneys and accountants,and from financial intermediaries,such as brokers.Atlantic Trust has offices in 11 U.S.

100、cities and managed$17.0 billion as of December 31,2010.Employees As of December 31,2010,we had 5,617 employees across the globe.As of December 31,2009 and 2008,we had 4,890 and 5,325 employees,respectively.None of our employees is covered under collective bargaining agreements.Formal hiring of staff

101、 in our Hyderabad,India,facility commenced with 83 individuals becoming our employees in late 2010.An additional 474 individuals became our employees by the date of this Report.10 Competition The investment management business is highly competitive,with points of differentiation including investment

102、 performance,the range of products offered,brand recognition,business reputation,financial strength,the depth and continuity of relationships,quality of service and the level of fees charged for services.We compete with a large number of investment management firms,commercial banks,investment banks,

103、broker dealers,hedge funds,insurance companies and other financial institutions.We believe that the quality and diversity of our investment styles,product types and channels of distribution enable us to compete effectively in the investment management business.We also believe being an independent in

104、vestment manager is a competitive advantage,as our business model avoids conflicts that are inherent within institutions that both distribute and/or serve investment products and manage investment products.Lastly,we believe continued execution against our multi-year strategy will further strengthen

105、our long-term competitive position.Management Contracts We derive substantially all of our revenues from investment management contracts with funds and other clients.Fees vary with the type of assets being managed,with higher fees earned on actively managed equity and balanced accounts,along with re

106、al estate and alternative asset products,and lower fees earned on fixed income,money market and stable value accounts,as well as certain ETFs.Investment management contracts are generally terminable upon thirty or fewer days notice.Typically,retail investors may withdraw their funds at any time with

107、out prior notice.Institutional and private wealth management clients may elect to terminate their relationship with us or reduce the aggregate amount of assets under management with very short notice periods.Available Information We file current and periodic reports,proxy statements and other inform

108、ation with the SEC,copies of which can be obtained from the SECs Public Reference Room at 100 F Street,NE,Washington,DC 20549.Information on the operation of the Public Reference Room can be obtained by calling the SEC at 1-800-SEC-0330.The SEC maintains an Internet site that contains reports,proxy

109、and information statements and other information regarding issuers that file electronically with the SEC,at www.sec.gov.We make available free of charge on our Web site,our Annual Report on Form 10-K,Quarterly Reports on Form 10-Q,Current Reports on Form 8-K,and amendments to those reports filed or

110、furnished pursuant to Section 13(a)or 15(d)of the Securities Exchange Act of 1934,as amended,as soon as reasonably practicable after we electronically file such material with,or furnish it to,the SEC.Item 1A.Risk Factors Volatility and disruption in world capital and credit markets,as well as advers

111、e changes in the global economy,can negatively affect Invescos revenues and may continue to do so.The capital and credit markets have been experiencing substantial volatility and disruption since 2007.While these disruptions moderated to some extent following the March 2009 lows in equity markets,hi

112、storical norms have not returned and the potential for extreme disruptions remains.These market events have materially impacted our results of operations,and may continue to do so,and could materially impact our financial condition and liquidity.In this regard:The volatility of global market conditi

113、ons around the world has resulted,and may continue to result,in significant volatility in our assets under management and in our revenues,driven by market value fluctuations on our managed portfolios.In addition to the impact of the market values on client portfolios,the illiquidity and volatility o

114、f both the global fixed income and equity markets could negatively affect our ability to manage client inflows and outflows from pooled investment vehicles or to timely meet client redemption requests.Our money market funds have always maintained a$1.00 net asset value(NAV);however,we do not guarant

115、ee such level.Market conditions could lead to severe liquidity issues in money market products,which could affect their NAVs.If the NAV of one of our money market funds were to decline below$1.00 per share,such funds could experience significant redemptions in assets under management,loss of shareho

116、lder confidence and reputational harm.In 2010 the SEC adopted new rules governing U.S.registered money market funds.These rules are designed to significantly strengthen the regulatory requirements governing money market funds,increase the resilience of such funds to economic stresses,and 11 reduce t

117、he risk of runs on these funds.Regulators in the U.S.continue to evaluate whether to propose mandating a variable(“floating”)NAV for money market funds.The company believes such a change would have significant adverse consequences on the money market funds industry and the short-term credit markets.

118、Even if legislative or regulatory initiatives or other efforts successfully stabilize and add liquidity to the financial markets,we may need to modify our strategies,businesses or operations,and we may incur increased capital requirements and constraints or additional costs in order to satisfy new r

119、egulatory requirements or to compete in a changed business environment.In the event of extreme circumstances,including economic,political,or business crises,such as a widespread systemic failure in the global financial system or additional failures of firms that have significant obligations as count

120、erparties on financial instruments,we may suffer significant declines in assets under management and severe liquidity or valuation issues in the short-term sponsored investment products in which client and company assets are invested,all of which would adversely affect our operating results,financia

121、l condition,liquidity,credit ratings,ability to access capital markets,and retention and ability to attract key employees.Additionally,these factors could impact our ability to realize the carrying value of our goodwill and other intangible assets.We may not adjust our expenses quickly enough to mat

122、ch significant deterioration in global financial markets.If we are unable to effect appropriate expense reductions in a timely manner in response to declines in our revenues,or if we are otherwise unable to adapt to rapid changes in the global marketplace,our profitability,financial condition and re

123、sults of operations would be adversely affected.Our revenues would be adversely affected by any reduction in assets under our management as a result of either a decline in market value of such assets or net outflows,which would reduce the investment management fees we earn.We derive substantially al

124、l of our revenues from investment management contracts with clients.Under these contracts,the investment management fees paid to us are typically based on the market value of assets under management.Assets under management may decline for various reasons.For any period in which revenues decline,our

125、income and operating margin may decline by a greater proportion because certain expenses remain fixed.Factors that could decrease assets under management(and therefore revenues)include the following:Declines in the market value of the assets in the funds and accounts managed.These could be caused by

126、 price declines in the securities markets generally or by price declines in the market segments in which those assets are concentrated.Approximately 48%of our total assets under management were invested in equity securities and approximately 52%were invested in fixed income and other investments at

127、December 31,2010.Our AUM as of January 31,2011,was$624.3 billion.We cannot predict whether volatility in the markets will result in substantial or sustained declines in the securities markets generally or result in price declines in market segments in which our assets under management are concentrat

128、ed.Any of the foregoing could negatively impact our revenues,income and operating margin.Redemptions and other withdrawals from,or shifting among,the funds and accounts managed.These could be caused by investors(in response to adverse market conditions or pursuit of other investment opportunities)re

129、ducing their investments in funds and accounts in general or in the market segments on which Invesco focuses;investors taking profits from their investments;poor investment performance of the funds and accounts managed by Invesco;and portfolio risk characteristics,which could cause investors to move

130、 assets to other investment managers.Poor performance relative to other investment management firms tends to result in decreased sales,increased redemptions of fund shares,and the loss of private institutional or individual accounts,with corresponding decreases in our revenues.Failure of our funds a

131、nd accounts to perform well could,therefore,have a material adverse effect on us.Furthermore,the fees we earn vary with the types of assets being managed,with higher fees earned on actively managed equity and balanced accounts,along with real estate and alternative asset products,and lower fees earn

132、ed on fixed income and stable return accounts.Therefore,our revenues may decline if clients shift their investments to lower fee accounts.Declines in the value of seed capital and partnership investments.The company has investments in sponsored investment products that invest in a variety of asset c

133、lasses,including,but not limited to equities,fixed income products,private equity,and real estate.Investments in these products are generally made to establish a track record,meet purchase size requirements for trading blocks,or demonstrate economic alignment with other investors in our funds.Advers

134、e market conditions may result in the need to write down the value of these seed capital and partnership investments.As of December 31,2010,the company had$198.0 million in seed capital and partnership investments.12 Our investment advisory agreements are subject to termination or non-renewal,and ou

135、r fund and other investors may withdraw their assets at any time.Substantially all of our revenues are derived from investment advisory agreements.Investment advisory agreements are generally terminable upon 30 or fewer days notice.Agreements with U.S.mutual funds may be terminated with notice,or te

136、rminated in the event of an“assignment”(as defined in the Investment Company Act),and must be renewed annually by the disinterested members of each funds board of directors or trustees,as required by law.In addition,the board of trustees or directors of certain other fund accounts of Invesco or our

137、subsidiaries generally may terminate these investment advisory agreements upon written notice for any reason.Mutual fund and unit trust investors may generally withdraw their funds at any time without prior notice.Institutional clients may elect to terminate their relationships with us or reduce the

138、 aggregate amount of assets under our management,and individual clients may elect to close their accounts,redeem their shares in our funds,or shift their funds to other types of accounts with different fee structures.Any termination of or failure to renew a significant number of these agreements,or

139、any other loss of a significant number of our clients or assets under management,would adversely affect our revenues and profitability.Our revenues and profitability from money market and other fixed income assets may be harmed by interest rate,liquidity and credit volatility.Certain institutional i

140、nvestors using money market products and other short-term duration fixed income products for cash management purposes may shift these investments to direct investments in comparable instruments in order to realize higher yields than those available in money market and other fund products holding low

141、er yielding instruments.These redemptions would reduce managed assets,thereby reducing our revenues.In addition,rising interest rates will tend to reduce the market value of bonds held in various investment portfolios and other products.Thus,increases in interest rates could have an adverse effect o

142、n our revenues from money market portfolios and from other fixed income products.If securities within a money market portfolio default,or investor redemptions force the portfolio to realize losses,there could be negative pressure on its net asset value.Although money market investments are not guara

143、nteed instruments,the company might decide,under such a scenario,that it is in its best interest to provide support in the form of a support agreement,capital infusion,or other methods to help stabilize a declining net asset value.Some of these methods could have an adverse impact on our profitabili

144、ty.Additionally,we have$32.9 million invested in Invesco Mortgage Capital,Inc.,$23.3 million of equity at risk invested in our collateralized loan obligation products,and$7.1 million invested in fixed income seed money at December 31,2010,the valuation of which could change with changes in interest

145、and default rates.We operate in an industry that is highly regulated in many countries,and any adverse changes in the laws or regulations governing our business could decrease our revenues and profitability.As with all investment management companies,our activities are highly regulated in almost all

146、 countries in which we conduct business.Laws and regulations applied at the national,state or provincial and local level generally grant governmental agencies and industry self-regulatory authorities broad administrative discretion over our activities,including the power to limit or restrict busines

147、s activities.Subsidiaries operating in the European Union(EU)also are subject to various EU Directives,which are implemented by member state national legislation.Possible sanctions include the revocation of licenses to operate certain businesses,the suspension or expulsion from a particular jurisdic

148、tion or market of any of our business organizations or their key personnel,the imposition of fines and censures on us or our employees and the imposition of additional capital requirements.It is also possible that laws and regulations governing our operations or particular investment products could

149、be amended or interpreted in a manner that is adverse to us.Certain of our subsidiaries are required to maintain minimum levels of capital.These and other similar provisions of applicable law may have the effect of limiting withdrawals of capital,repayment of intercompany loans and payment of divide

150、nds by such entities.A sub-group of Invesco subsidiaries,including all of our regulated EU subsidiaries,is subject to consolidated capital requirements under EU Directives,and capital is maintained within this sub-group to satisfy these regulations.At December 31,2010,the European sub-group had cash

151、 and cash equivalent balances of$456.2 million,much of which is used to satisfy these regulatory requirements.Complying with our regulatory commitments may result in an increase in the capital requirements applicable to the European sub-group.As a result of corporate restructuring and the regulatory

152、 undertakings that we have given,certain of these EU subsidiaries may be required to limit their dividends to the parent company,Invesco Ltd.We cannot guarantee that further corporate restructuring will not be required to comply with applicable legislation.The regulatory environment in which we oper

153、ate frequently changes and has seen significant increased regulation in recent years.We may be adversely affected as a result of new or revised legislation or regulations or by changes in the interpretation or enforcement of existing laws and regulations.To the extent that existing regulations are a

154、mended or future regulations are adopted that reduce the sale,or increase the redemptions,of our products and services,or that negatively affect the investment performance of our products,our aggregate assets under management and our revenues could be adversely affected.In addition,regulatory change

155、s could impose additional costs,which could negatively impact our profitability.13 Various changes in law and regulation have been enacted or adopted and are beginning to be implemented or otherwise developed in multiple jurisdictions globally in response to the crisis in the financial markets that

156、began in 2007.Various other proposals remain under consideration by various legislators,regulators,other government officials and other public policy commentators.Certain enacted provisions and certain other proposals are potentially far reaching and,depending upon their implementation,could have a

157、material impact on Invescos business.While many of these provisions appear designed to address perceived problems in the banking sector,certain of the provisions will or may be applied to other financial services companies,including investment managers.In the United States,the Dodd-Frank Wall Street

158、 Reform and Consumer Protection Act(the“Dodd-Frank Act”)was signed into law on July 21,2010.While Invesco does not at this time believe that the Dodd-Frank Act will fundamentally change the investment management industry or cause Invesco to reconsider its fundamental strategy,it does appear that cer

159、tain provisions will,and other provisions may,increase regulatory burdens and related compliance costs.In addition,the scope of many provisions of the Dodd-Frank Act will be determined by implementing regulations,some of which will require lengthy proposal and promulgation periods.Moreover,the Dodd-

160、Frank Act mandates many regulatory studies,some of which pertain directly to the investment management industry,which could lead to additional legislation or regulation.As a result of these uncertainties regarding implementation of the Dodd-Frank Act and such other future potential legislative or re

161、gulatory changes,the impact of the Dodd-Frank Act on the investment management industry and Invesco cannot be predicted at this time.The European Union has promulgated or is considering various new or revised Directives pertaining to financial services,including investment managers.Such Directives a

162、re progressing at various stages,and are being or will or would be implemented by national legislation in member states.As with the Dodd-Frank Act,Invesco does not believe implementation of these Directives will fundamentally change our industry or cause us to reconsider our fundamental strategy,but

163、 it does appear certain provisions will,and other provisions may,increase regulatory burdens and compliance costs.Similar developments are being implemented or considered in other jurisdictions where we do business;such developments could have similar effects.Potential developments under enacted and

164、 proposed legal and regulatory changes,and related matters,include:Expanded prudential regulation over investment management firms.New or increased capital requirements and related regulation(including new capital requirements pertaining to money market funds).Additional change to the regulation of

165、money market funds in the U.S.The SEC has adopted changes to Rule 2a-7,the primary securities regulation governing U.S.registered money market funds.These new rules are designed to significantly strengthen the regulatory requirements governing money market funds,increase the resilience of such funds

166、 to economic stresses,and reduce the risk of runs on these funds.Regulators in the U.S.continue to evaluate whether to propose mandating a variable(“floating”)NAV for money market funds.Invesco believes such a change would have significant adverse consequences on the money market funds industry and

167、the short-term credit markets,and is encouraged by the recognition of these concerns in the Report of the Presidents Working Group on Financial Markets on Money Market Fund Reform Options issued October 21,2010.Changes to the distribution of investment funds and other investment products.In the U.S.

168、,the SEC has proposed significant changes to Rule 12b-1.Invesco believes these proposals would increase operational and compliance costs.The U.K.Financial Services Authority continues to develop its Retail Distribution Review,which is expected to reshape the manner in which retail investment funds a

169、re sold in the U.K.The EU adopted the Alternative Investment Fund Manager Directive;implementing legislation in member states could,among other elements,impose restrictions on the marketing and sale within the EU of private equity and other alternative investment funds sponsored by non-EU managers.V

170、arious regulators have promulgated or are considering other new disclosure and suitability requirements pertaining to the distribution of investment funds and other investment products,including enhanced standards and requirements pertaining to disclosures made to retail investors at the point of sa

171、le.Guidelines regarding the structure and components of compensation,including under the Dodd-Frank Act and various EU Directives.Additional resourcing for regulatory examinations and inspections,including enforcement reviews,and a more aggressive posture regarding commencing enforcement proceedings

172、.Changes impacting certain other products or markets(e.g.,retirement savings).Enhanced licensing and qualification requirements for key personnel.14 Other additional rules and regulations and disclosure requirements.Certain provisions impose additional disclosure burdens on public companies,includin

173、g Invesco.Certain proposals could impose requirements for more widespread disclosures of compensation to highly-paid individuals.Depending upon the scope of any such requirements,Invesco could be disadvantaged in retaining key employees vis-vis private companies,including hedge fund sponsors.Strengt

174、hening standards regarding various ethical matters,including enhanced focus of U.S.regulators and law enforcement agencies on compliance with the Foreign Corrupt Practices Act and the enactment of the U.K.Bribery Act.Other changes impacting the identity or the organizational structure of regulators

175、with supervisory authority over Invesco.Invesco cannot at this time predict the full impact of potential legal and regulatory changes on its business.It is possible such changes could impose new compliance costs or capital requirements or impact Invesco in other ways that could have a material adver

176、se impact on Invescos results of operations,financial condition or liquidity.Moreover,certain legal or regulatory changes could require us to modify our strategies,businesses or operations,and we may incur other new constraints or costs in order to satisfy new regulatory requirements or to compete i

177、n a changed business environment.To the extent that existing or future regulations affecting the sale of our products and services or our investment strategies cause or contribute to reduced sales or increased redemptions of our products or impair the investment performance of our products,our aggre

178、gate assets under management and results of operations might be adversely affected.Civil litigation and governmental enforcement actions and investigations could adversely affect our assets under management and future financial results,and increase our costs of doing business.Invesco and certain rel

179、ated entities have in recent years been subject to various legal proceedings arising from normal business operations and/or matters that have been the subject of previous regulatory actions.See Part I,Item 3,“Legal Proceedings,”for additional information.Our investment management professionals and o

180、ther key employees are a vital part of our ability to attract and retain clients,and the loss of key individuals or a significant portion of those professionals could result in a reduction of our revenues and profitability.Retaining highly skilled technical and management personnel is important to o

181、ur ability to attract and retain clients and retail shareholder accounts.The market for investment management professionals is competitive and has grown more so in recent periods as the investment management industry has experienced growth.The market for investment managers is also increasingly char

182、acterized by the movement of investment managers among different firms.Our policy has been to provide our investment management professionals with a supportive professional working environment and compensation and benefits that we believe are competitive with other leading investment management firm

183、s.However,we may not be successful in retaining our key personnel,and the loss of key individuals or significant investment management personnel could reduce the attractiveness of our products to potential and current clients and could,therefore,adversely affect our revenues and profitability.If our

184、 reputation is harmed,we could suffer losses in our business,revenues and net income.Our business depends on earning and maintaining the trust and confidence of clients,regulators and other market participants,and our good reputation is critical to our business.Our reputation is vulnerable to many t

185、hreats that can be difficult or impossible to control,and costly or impossible to remediate.Regulatory inquiries,material errors in public reports,employee dishonesty or other misconduct and rumors,among other things,can substantially damage our reputation,even if they are baseless or satisfactorily

186、 addressed.Further,our business requires us to continuously manage actual and potential conflicts of interest,including situations where our services to a particular client conflict,or are perceived to conflict,with the interests of another client or those of Invesco.We have procedures and controls

187、that are designed to address and manage conflicts of interest,but this task can be complex and difficult,and our reputation could be damaged,and the willingness of clients to enter into transactions in which such a conflict might arise may be affected,if we fail or appear to fail to deal appropriate

188、ly with conflicts of interest.In addition,potential or perceived conflicts could give rise to litigation or regulatory enforcement actions.Any damage to our reputation could impede our ability to attract and retain clients and key personnel,and lead to a reduction in the amount of our assets under m

189、anagement,any of which could have a material adverse effect on our revenues and net income.15 Failure to comply with client contractual requirements and/or guidelines could result in damage awards against us and loss of revenues due to client terminations.Many of the investment management agreements

190、 under which we manage assets or provide products or services specify guidelines or contractual requirements that Invesco is required to observe in the provision of its services.A failure to comply with these guidelines or contractual requirements could result in damage to our reputation or in our c

191、lients seeking to recover losses,withdrawing their assets or terminating their contracts,any of which could cause our revenues and net income to decline.We maintain various compliance procedures and other controls to prevent,detect and correct such errors.When an error is detected,we typically will

192、make a payment into the applicable client account to correct it.Significant errors could impact our results of operations.Competitive pressures may force us to reduce the fees we charge to clients,increase commissions paid to our financial intermediaries or provide more support to those intermediari

193、es,all of which could reduce our profitability.The investment management business is highly competitive,and we compete based on a variety of factors,including investment performance,the range of products offered,brand recognition,business reputation,financial strength,stability and continuity of cli

194、ent and intermediary relationships,quality of service,level of fees charged for services and the level of compensation paid and distribution support offered to financial intermediaries.We continue to face market pressures regarding fee levels in certain products.We face strong competition in every m

195、arket in which we operate.Our competitors include a large number of investment management firms,commercial banks,investment banks,broker-dealers,hedge funds,insurance companies and other financial institutions.Some of these institutions have greater capital and other resources,and offer more compreh

196、ensive lines of products and services,than we do.Our competitors seek to expand their market share in many of the products and services we offer.If these competitors are successful,our revenues and profitability could be adversely affected.In addition,there are relatively few barriers to entry by ne

197、w investment management firms,and the successful efforts of new entrants into our various distribution channels around the world have also resulted in increased competition.In recent years there have been several instances of industry consolidation,both in the area of distributors and manufacturers

198、of investment products.Further consolidation may occur in these areas in the future.The increasing size and market influence of certain distributors of our products and of certain direct competitors may have a negative impact on our ability to compete at the same levels of profitability in the futur

199、e,should we find ourselves unable to maintain relevance in the markets in which we compete.We may engage in strategic transactions that could create risks.As part of our business strategy,we regularly review,and from time to time have discussions with respect to,potential strategic transactions,incl

200、uding potential acquisitions,dispositions,consolidations,joint ventures or similar transactions,some of which may be material.There can be no assurance that we will find suitable candidates for strategic transactions at acceptable prices,have sufficient capital resources to pursue such transactions,

201、be successful in negotiating the required agreements,or successfully close transactions after signing such agreements.Acquisitions also pose the risk that any business we acquire may lose customers or employees or could underperform relative to expectations.We could also experience financial or othe

202、r setbacks if pending transactions encounter unanticipated problems,including problems related to closing or integration.Following the completion of an acquisition,we may have to rely on the seller to provide administrative and other support,including financial reporting and internal controls,to the

203、 acquired business for a period of time.There can be no assurance that such sellers will do so in a manner that is acceptable to us.Our ability to access the capital markets in a timely manner should we seek to do so depends on a number of factors.Our access to the capital markets,including for purp

204、oses of financing potential acquisitions,depends significantly on our credit ratings.We have received credit ratings of A3/Stable and A-/Stable from Moodys and Standard&Poors credit rating agencies,respectively,as of the date of this Annual Report on Form 10-K.According to Moodys,obligations rated A

205、 are considered upper medium grade and are subject to low credit risk.Invescos rating of A3 is at the low end of the A range(A1,A2,A3),but three notches above the lowest investment grade rating of Baa3.Standard and Poors rating of A-is at the lower end of the A rating,with BBB-representing Standard

206、and Poors lowest investment grade rating.According to Standard and Poors,A obligations exhibit a strong capacity to meet financial commitments,but are somewhat susceptible to adverse economic conditions or changing circumstances.We believe that rating agency concerns include but are not limited to:o

207、ur revenues are somewhat exposed to equity market volatility,negative tangible equity,potential impact from regulatory changes to the industry,and integration risk related to the acquisition of Morgan Stanleys retail asset management business.Additionally,the rating agencies could decide to downgrad

208、e the entire investment management industry,based on their perspective of future growth and solvency.Material deterioration of these 16 factors,and others defined by each rating agency,could result in downgrades to our credit ratings,thereby limiting our ability to generate additional financing.Our

209、credit facility borrowing rates are tied to our credit ratings.Management believes that solid investment grade ratings are an important factor in winning and maintaining institutional business and strives to manage the company to maintain such ratings.A reduction in our long-or short-term credit rat

210、ings could increase our borrowing costs,limit our access to the capital markets,and may result in outflows thereby reducing AUM and revenues.Continued volatility in global finance markets may also affect our ability to access the capital markets should we seek to do so.If we are unable to access cap

211、ital markets in a timely manner,our business could be adversely affected.Our indebtedness could adversely affect our financial position.As of December 31,2010,we had outstanding total debt of$1,315.7 million and total equity attributable to common shareholders of$7,769.1 million,excluding retained e

212、arnings appropriated for investors in consolidated investment products.The amount of indebtedness we carry could limit our ability to obtain additional financing for working capital,capital expenditures,acquisitions,debt service requirements or other purposes,increase our vulnerability to adverse ec

213、onomic and industry conditions,limit our flexibility in planning for,or reacting to,changes in our business or industry,and place us at a disadvantage in relation to our competitors.Any or all of the above factors could materially adversely affect our financial position or results of operations.Our

214、credit facility imposes restrictions on our ability to conduct business and,if amounts borrowed under it were subject to accelerated repayment,we might not have sufficient assets to repay such amounts in full.Our credit facility requires us to maintain specified financial ratios,including maximum de

215、bt-to-earnings and minimum interest coverage ratios.This credit facility also contains customary affirmative operating covenants and negative covenants that,among other things,restrict certain of our subsidiaries ability to incur debt and restrict our ability to transfer assets,merge,make loans and

216、other investments and create liens.The breach of any covenant(either due to our actions or due to a significant and prolonged market-driven decline in our operating results)would result in a default under the credit facility.In the event of any such default,lenders that are party to the credit facil

217、ity could refuse to make further extensions of credit to us and require all amounts borrowed under the credit facility,together with accrued interest and other fees,to be immediately due and payable.If any indebtedness under the credit facility were subject to accelerated repayment,we might not have

218、 sufficient liquid assets to repay such indebtedness in full.Changes in the distribution channels on which we depend could reduce our revenues and hinder our growth.We sell a significant portion of our investment products through a variety of financial intermediaries,including major wire houses,regi

219、onal broker-dealers,banks and financial planners in North America,and independent brokers and financial advisors,banks and financial organizations in Europe and Asia.Increasing competition for these distribution channels could cause our distribution costs to rise,which would lower our net revenues.F

220、ollowing the financial crisis,there has been consolidation of banks and broker-dealers,particularly in the U.S.,and a limited amount of migration of brokers and financial advisors away from major banks to independent firms focused largely on providing advice.If these trends continue,our distribution

221、 costs could increase as a percentage of our revenues generated.Additionally,particularly outside of the U.S.,certain of the intermediaries upon whom we rely to distribute our investment products also sell their own competing proprietary funds and investment products,which could limit the distributi

222、on of our products.Increasingly,investors,particularly in the institutional market,rely on external consultants and other unconflicted third parties for advice on the choice of investment manager.These consultants and third parties tend to exert a significant degree of influence and they may favor a

223、 competitor of Invesco as better meeting their particular clients needs.There is no assurance that our investment products will be among their recommended choices in the future.If one of our major distributors were to cease operations,it could have a significant adverse effect on our revenues and pr

224、ofitability.Any failure to maintain strong business relationships with these distribution sources and the consultant community would impair our ability to sell our products,which in turn could have a negative effect on our revenues and profitability.We could be subject to losses if we fail to proper

225、ly safeguard confidential and sensitive information.We maintain and transmit confidential information about our clients as well as proprietary information relating to our business operations as part of our regular operations.Our systems could be attacked by unauthorized users or corrupted by compute

226、r viruses or other malicious software code,or authorized persons could inadvertently or intentionally release confidential or proprietary information.17 Such disclosure could,among other things,damage our reputation,allow competitors to access our proprietary business information,result in liability

227、 for failure to safeguard our clients data,result in the termination of contracts by our existing customers,subject us to regulatory action,or require material capital and operating expenditures to investigate and remediate the breach.Our business is vulnerable to deficiencies and failures in suppor

228、t systems and customer service functions that could lead to breaches and errors,resulting in loss of customers or claims against us or our subsidiaries.The ability to consistently and reliably obtain accurate securities pricing information,process client portfolio and fund shareholder transactions a

229、nd provide reports and other customer service to fund shareholders and clients in other accounts managed by us is essential to our continuing success.In recent periods,illiquid markets for certain types of securities have required increased use of fair value pricing,which is dependent on certain sub

230、jective judgments that have the potential to be challenged.Any delays or inaccuracies in obtaining pricing information,processing such transactions or such reports,other breaches and errors,and any inadequacies in other customer service,could result in reimbursement obligations or other liabilities,

231、or alienate customers and potentially give rise to claims against us.Our customer service capability,as well as our ability to obtain prompt and accurate securities pricing information and to process transactions and reports,is highly dependent on communications and information systems and on third-

232、party vendors.These systems or vendors could suffer deficiencies,failures or interruptions due to various natural or man-made causes,and our back-up procedures and capabilities may not be adequate to avoid extended interruptions in operations.Certain of these processes involve a degree of manual inp

233、ut,and thus similar problems could occur from time to time due to human error.If we are unable to successfully recover from a disaster or other business continuity problem,we could suffer material financial loss,loss of human capital,regulatory actions,reputational harm or legal liability.If we were

234、 to experience a local or regional disaster or other business continuity problem,such as a pandemic or other natural or man-made disaster,our continued success will depend,in part,on the availability of our personnel,our office facilities and the proper functioning of our computer,telecommunication

235、and other related systems and operations.In such an event,our operational size,the multiple locations from which we operate,and our existing back-up systems would provide us with an important advantage.Nevertheless,we could still experience near-term operational challenges with regard to particular

236、areas of our operations,such as key executive officers or technology personnel.Further,as we strive to achieve cost savings by shifting certain business processes to lower-cost geographic locations such as India,the potential for particular types of natural or man-made disasters,political,economic o

237、r infrastructure instabilities,or other country-or region-specific business continuity risks increases.Although we seek to regularly assess and improve our existing business continuity plans,a major disaster,or one that affected certain important operating areas,or our inability to successfully reco

238、ver should we experience a disaster or other business continuity problem,could materially interrupt our business operations and cause material financial loss,loss of human capital,regulatory actions,reputational harm or legal liability.Since many of our subsidiary operations are located outside of t

239、he United States and have functional currencies other than the U.S.dollar,changes in the exchange rates to the U.S.dollar affect our reported financial results from one period to the next.The largest component of our net assets,revenues and expenses,as well as our assets under management,is presentl

240、y derived from the United States.However,we have a large number of subsidiaries outside of the United States whose functional currencies are not the U.S.dollar.As a result,fluctuations in the exchange rates to the U.S.dollar affect our reported financial results from one period to the next.We do not

241、 actively manage our exposure to such effects.Consequently,significant strengthening of the U.S.dollar relative to the U.K.Pound Sterling,Euro,or Canadian dollar,among other currencies,could have a material negative impact on our reported financial results.The carrying value of goodwill and other in

242、tangible assets on our balance sheet could become impaired,which would adversely affect our results of operations.We have goodwill and indefinite-lived intangible assets on our balance sheet that are subject to annual impairment reviews.Goodwill and indefinite-lived intangible assets totaled$6,980.2

243、 million and$1,161.7 million,respectively,at December 31,2010(2009:$6,467.6 million and$110.6 million,respectively).We may not realize the value of such assets.We perform impairment reviews of the book values of these assets on an annual basis or more frequently if impairment indicators are present.

244、A variety of factors could cause such book values to become impaired.Should valuations be deemed to be impaired,a write-down of the related assets would occur,adversely affecting our results of operations for the period.See Part II,Item 7,“Managements Discussion and Analysis of Financial Condition a

245、nd Results of Operations Critical Accounting Policies Goodwill”and“Intangibles”for additional details of the companys goodwill impairment analysis process.18 Bermuda law differs from the laws in effect in the United States and may afford less protection to shareholders.Our shareholders may have more

246、 difficulty protecting their interests than shareholders of a corporation incorporated in a jurisdiction of the United States.As a Bermuda company,we are governed by the Companies Act 1981 of Bermuda(“Companies Act”).The Companies Act differs in some material respects from laws generally applicable

247、to United States corporations and shareholders,including provisions relating to interested directors,mergers,amalgamations and acquisitions,takeovers,shareholder lawsuits and indemnification of directors.Under Bermuda law,the duties of directors and officers of a company are generally owed to the co

248、mpany only.Shareholders of Bermuda companies do not generally have rights to take action against directors or officers of the company,and may only do so in limited circumstances.Directors and officers may owe duties to a companys creditors in cases of impending insolvency.Directors and officers of a

249、 Bermuda company must,in exercising their powers and performing their duties,act honestly and in good faith with a view to the best interests of the company and must exercise the care and skill that a reasonably prudent person would exercise in comparable circumstances.Directors have a duty not to p

250、ut themselves in a position in which their duties to the company and their personal interests may conflict and also are under a duty to disclose any personal interest in any material contract or proposed material contract with the company or any of its subsidiaries.If a director or officer of a Berm

251、uda company is found to have breached his duties to that company,he may be held personally liable to the company in respect of that breach of duty.Our Bye-Laws provide for indemnification of our directors and officers in respect of any loss arising or liability attaching to them in respect of any ne

252、gligence,default,breach of duty or breach of trust of which a director or officer may be guilty in relation to us other than in respect of his own fraud or dishonesty,which is the maximum extent of indemnification permitted under the Companies Act.Under our Bye-Laws,each of our shareholders agrees t

253、o waive any claim or right of action,both individually and on our behalf,other than those involving fraud or dishonesty,against us or any of our officers,directors or employees.The waiver applies to any action taken by a director,officer or employee,or the failure of such person to take any action,i

254、n the performance of his duties,except with respect to any matter involving any fraud or dishonesty on the part of the director,officer or employee.This waiver limits the right of shareholders to assert claims against our directors,officers and employees unless the act or failure to act involves fra

255、ud or dishonesty.Legislative and other measures that may be taken by U.S.and/or other governmental authorities could materially increase our tax burden or otherwise adversely affect our financial conditions,results of operations or cash flows.Under current laws,as the company is domiciled and tax re

256、sident in Bermuda,taxation in other jurisdictions is dependent upon the types and the extent of the activities of the company undertaken in those jurisdictions.There is a risk that changes in either the types of activities undertaken by the company or changes in tax rules relating to tax residency c

257、ould subject the company and its shareholders to additional taxation.We continue to assess the impact of various U.S.federal and state legislative proposals,and modifications to existing tax treaties between the United States and foreign countries,that could result in a material increase in our U.S.

258、federal and state taxes.Proposals have been introduced in the U.S.Congress that,if ultimately enacted,could either limit treaty benefits on certain payments made by our U.S.subsidiaries to non-U.S.affiliates,treat the company as a U.S.corporation and thereby subject the earnings from non-U.S.subsidi

259、aries of the company to U.S.taxation,or both.We cannot predict the outcome of any specific legislative proposals.However,if such proposals were to be enacted,or if modifications were to be made to certain existing tax treaties,the consequences could have a materially adverse impact on the company,in

260、cluding increasing our tax burden,increasing costs of our tax compliance or otherwise adversely affecting our financial condition,results of operations or cash flows.Examinations and audits by tax authorities could result in additional tax payments for prior periods.The company and its subsidiaries

261、income tax returns periodically are examined by various tax authorities.The calculation of our tax liabilities involves dealing with uncertainties in the application of complex tax regulations in a multitude of jurisdictions across our global operations.We recognize potential liabilities and record

262、tax liabilities for anticipated tax audit issues based on our estimate of whether,and the extent to which,additional income taxes will be due.We adjust these liabilities in light of changing facts and circumstances.Due to the complexity of some of these uncertainties,however,the ultimate resolution

263、may result in a payment that is materially different from our current estimate of the tax liabilities.We have anti-takeover provisions in our Bye-Laws that may discourage a change of control.Our Bye-Laws contain provisions that could make it more difficult for a third-party to acquire us or to obtai

264、n majority representation on our board of directors without the consent of our board.As a result,shareholders may be limited in their ability to obtain a premium for their shares under such circumstances.19 Item 1B.Unresolved Staff Comments N/A Item 2.Properties Our registered office is located in H

265、amilton,Bermuda,and our principal executive offices are in leased office space at 1555 Peachtree Street N.E.,Suite 1800,Atlanta,Georgia,30309,U.S.A.We own office facilities at Perpetual Park,Henley-on-Thames,Oxfordshire,RG9 1HH,United Kingdom,and at 301 W.Roosevelt,Wheaton,Illinois,60187,and we leas

266、e our additional principal offices located at 30 Finsbury Square,London,EC2A 1AG,United Kingdom;11 Greenway Plaza,Houston,Texas 77046;1166 Avenue of the Americas,New York,New York 10036;17W110 22nd Street,Oakbrook Terrace,Illinois 60181,and in Canada at 5140 Yonge Street,Toronto,Ontario M2N 6X7.We l

267、ease office space in 18 other countries.Item 3.Legal Proceedings In July 2010,various closed-end funds formerly advised by Van Kampen Investments or Morgan Stanley Investment Management included in the acquired business had complaints filed against them in New York State Court commencing derivative

268、lawsuits purportedly brought on behalf of the common shareholders of those funds.The funds are nominal defendants in these derivative lawsuits and the defendants also include Van Kampen Investments(acquired by Invesco on June 1,2010),Morgan Stanley Investment Management and certain officers and trus

269、tees of the funds who are or were employees of those firms.Invesco has certain obligations under the applicable acquisition agreement regarding the defense costs and any damages associated with this litigation.The plaintiffs allege breaches of fiduciary duties owed by the non-fund defendants to the

270、funds common shareholders related to the funds redemption in prior periods of Auction Rate Preferred Securities(“ARPS”)theretofore issued by the funds.The complaints are similar to other complaints recently filed against investment advisers,officers and trustees of closed-end funds in other fund com

271、plexes which issued and redeemed ARPS.The complaints allege that the advisers,distributors and certain officers and trustees of those funds breached their fiduciary duty by redeeming ARPS at their liquidation value when there was no obligation to do so and when the value of ARPS in the secondary mar

272、ketplace were significantly below their liquidation value.The complaints also allege that the ARPS redemptions were principally motivated by the fund sponsors interests to preserve distribution relationships with brokers and other financial intermediaries who held ARPS after having repurchased them

273、from their own clients.Certain other funds included in the acquired business have received demand letters expressing similar allegations.Such demand letters could be precursors to additional similar lawsuits being commenced against those other funds.The Boards of Trustees of the funds are evaluating

274、 the complaints and demand letters and have established special committees of independent trustees to conduct an inquiry regarding the allegations.Invesco believes the cases should be dismissed following completion of such review period,although there can be no assurance of that result.Invesco inten

275、ds to defend vigorously any cases which may survive beyond initial motions to dismiss.The investment management industry also is subject to extensive levels of ongoing regulatory oversight and examination.In the United States and other jurisdictions in which the company operates,governmental authori

276、ties regularly make inquiries,hold investigations and administer market conduct examinations with respect to compliance with applicable laws and regulations.Additional lawsuits or regulatory enforcement actions arising out of these inquiries may in the future be filed against the company and related

277、 entities and individuals in the U.S.and other jurisdictions in which the company and its affiliates operate.Any material loss of investor and/or client confidence as a result of such inquiries and/or litigation could result in a significant decline in assets under management,which would have an adv

278、erse effect on the companys future financial results and its ability to grow its business.In the normal course of its business,the company is subject to various litigation matters.Although there can be no assurances,at this time management believes,based on information currently available to it,that

279、 it is not probable that the ultimate outcome of any of these actions will have a material adverse effect on the consolidated financial condition or results of operations of the company.Item 4.Submission of Matters to a Vote of Security Holders None.20 PART II Item 5.Market for Registrants Common Eq

280、uity,Related Stockholder Matters and Issuer Purchases of Equity Securities Invesco Ltd.is organized under the laws of Bermuda,and our common shares are listed and traded on the New York Stock Exchange under the symbol“IVZ.”At January 31,2011,there were approximately 6,777 holders of record of our co

281、mmon shares.The following table sets forth,for the periods indicated,the high and low reported share prices on the New York Stock Exchange,based on data reported by Bloomberg.Invesco Ltd.Common Shares High Low Dividends Declared*2010 Fourth Quarter.$24.24$21.06$0.1100 Third Quarter.$21.90$16.63$0.11

282、00 Second Quarter.$23.66$16.83$0.1100 First Quarter.$23.63$18.32$0.1025 2009 Fourth Quarter.$23.97$20.04$0.1025 Third Quarter.$23.00$15.72$0.1025 Second Quarter.$18.73$13.60$0.1025 First Quarter.$15.00$9.51$0.1000 _ *Dividends declared represent amounts declared in the current quarter but are attrib

283、utable to the prior fiscal quarter.The following graph illustrates the cumulative total shareholder return of our common shares(ordinary shares prior to December 4,2007)over the five-year period ending December 31,2010,and compares it to the cumulative total return of the Standard and Poors(S&P)500

284、Index and to a group of peer investment management companies.This table is not intended to forecast future performance of our common shares.-50%0%50%100%150%200520062007200820092010Asset Manager IndexInvescoS&P 500 Note:The above chart is the average annual total return for the period from December

285、31,2005 through December 31,2010.Asset Manager Index includes Affiliated Managers Group,Alliance Bernstein,BlackRock,Eaton Vance,Federated Investors,Franklin Resources,Gamco Investors,Invesco Ltd.,Janus,Legg Mason,Schroders Plc,T.Rowe Price,and Waddell&Reed.21 Important Information Regarding Dividen

286、d Payments Invesco declares and pays dividends on a quarterly basis in arrears.On October 25,2010,the company declared a third quarter cash dividend of$0.11 per Invesco Lmon share which was paid on December 8,2010 to shareholders of record as of November 19,2010.On January 27,2011,the company declar

287、ed a fourth quarter 2010 cash dividend of$0.11 per Invesco Lmon share which will be paid on March 9,2011 to shareholders of record as of February 23,2011.The total dividend attributable to the 2010 fiscal year of$0.44 per share represented a 7.3%increase over the total dividend attributable to the 2

288、009 fiscal year of$0.41 per share.The declaration,payment and amount of any future dividends will be determined by our board of directors and will depend upon,among other factors,our earnings,financial condition and capital requirements at the time such declaration and payment are considered.The boa

289、rd has a policy of managing dividends in a prudent fashion,with due consideration given to profit levels,overall debt levels and historical dividend payouts.See also Part II,Item 7,“Managements Discussion and Analysis of Financial Condition and Results of Operations Liquidity and Capital Resources D

290、ividends,”for additional details regarding dividends.Repurchases of Equity Securities The following table shows share repurchase activity during the three months ended December 31,2010:Month Total Number of Shares Purchased(1)Average Price Paid Per Share Total Number of Shares Purchased as Part of P

291、ublicly Announced Plans or Programs(2)Maximum Number at end of period(or Approximate Dollar Value)of Shares that May Yet Be Purchased Under the Plans or Programs(2)(millions)October 1-31,2010.160,181$21.38$1,232.9 November 1-30,2010.2,934,853$21.99 2,934,853$1,168.4 December 1-31,2010.33$23.23$1,168

292、.4 3,095,067 2,934,853 _ (1)An aggregate of 160,214 restricted share awards included in the table above were surrendered to us by Invesco employees to satisfy tax withholding obligations or loan repayments in connection with the vesting of equity awards.(2)On April 23,2008,our board of directors aut

293、horized a share repurchase authorization of up to$1.5 billion of our common shares with no stated expiration date.22 Item 6.Selected Financial Data The following tables present selected consolidated financial information for the company as of and for each of the five fiscal years in the period ended

294、 December 31,2010.Except as otherwise noted below,the consolidated financial information has been prepared in accordance with U.S.generally accepted accounting principles.As of and For The Years Ended December 31,$in millions,except per share and other data 2010 2009 2008 2007 2006 Operating Data:Op

295、erating revenues.3,487.72,627.33,307.63,878.9 3,246.7Net revenues(1).2,602.21,984.62,490.22,881.9 2,412.8Operating income.589.9484.3747.8994.3 759.2Adjusted operating income(2).897.7565.6826.11,078.6 766.2Operating margin.16.9%18.4%22.6%25.6%23.4%Adjusted operating margin(2).34.5%28.5%33.2%37.4%31.8

296、%Net income attributable to common shareholders.465.7322.5481.7673.6 482.7Adjusted net income(3).639.7378.1527.1718.2 499.7Per Share Data:Earnings per share:-basic.1.010.771.241.68 1.22-diluted.1.010.761.211.64 1.19Adjusted EPS(3).1.380.891.321.74 1.23Dividends declared per share.0.43250.40750.52000

297、.3720 0.3570Balance Sheet Data:Total assets.20,444.110,909.69,756.912,925.2 12,228.5Long-term debt.1,315.7745.71,159.21,276.4 1,279.0Long-term debt of consolidated investment products.5,865.4116.6 37.0Total equity attributable to common shareholders.8,264.66,912.95,689.56,590.6 6,164.0Total equity.9

298、,360.97,620.86,596.27,711.8 7,668.6Other Data:Ending AUM(in billions).$616.5$459.5$377.1$529.3$482.0Average AUM(in billions).$532.3$415.8$468.9$511.7$430.7Headcount.5,6174,8905,3255,475 5,574 _ (1)Net revenues are operating revenues less third-party distribution,service and advisory expenses,plus ou

299、r proportional share of the net revenues of our joint venture investments,plus management fees earned from,less other revenue recorded by,consolidated investment products.See Item 7,“Managements Discussion and Analysis of Financial Condition and Results of Operations Schedule of Non-GAAP Information

300、”for the reconciliation of operating revenues to net revenues.(2)Adjusted operating margin is adjusted operating income divided by net revenues.Adjusted operating income includes operating income plus our proportional share of the operating income of our joint venture investments,transaction and int

301、egration charges,amortization of acquisition-related prepaid compensation and other intangibles,compensation expense related to market valuation changes in deferred compensation plans,the operating income impact of the consolidation of investment products,and other reconciling items.See Item 7,“Mana

302、gements Discussion and Analysis of Financial Condition and Results of Operations Schedule of Non-GAAP Information”for the reconciliation of operating income to adjusted operating income.(3)Adjusted net income is net income attributable to common shareholders adjusted to add back transaction and inte

303、gration charges,amortization of acquisition-related prepaid compensation and other intangibles,and the tax cash flow benefits resulting from tax amortization of goodwill and indefinite-lived intangible assets.Adjusted net income excludes the net income of consolidated investment products,and the net

304、 income impact of deferred compensation plans and other reconciling items.By calculation,adjusted EPS is adjusted net income divided by the weighted average number of shares outstanding(for diluted EPS).See Item 7,“Managements Discussion and Analysis of Financial Condition and Results of Operations

305、Schedule of Non-GAAP Information”for the reconciliation of net income to adjusted net income.23 Item 7.Managements Discussion and Analysis of Financial Condition and Results of Operations Executive Overview The following executive overview summarizes the significant trends affecting our results of o

306、perations and financial condition for the periods presented.This overview and the remainder of this managements discussion and analysis supplements,and should be read in conjunction with,the Consolidated Financial Statements of Invesco Ltd.and its subsidiaries(collectively,the“company”or“Invesco”)an

307、d the notes thereto contained elsewhere in this Annual Report on Form 10-K.Invesco is a leading independent global investment manager with offices in more than 20 countries.As of December 31,2010,we managed$616.5 billion in assets for retail,institutional and high-net-worth investors around the worl

308、d.By delivering the combined power of our distinctive worldwide investment management capabilities,Invesco provides a comprehensive array of enduring solutions for our clients.We have a significant presence in the institutional and retail segments of the investment management industry in North Ameri

309、ca,UK,Europe and Asia-Pacific,serving clients in more than 150 countries.Despite a number of challenges during the year,including the U.S.equity market flash crash in May,the heightened risk of European sovereign default,and continued uncertainty about the strength of the economic recovery,most glob

310、al equity markets achieved positive returns in 2010 marking the second year of recovery from the financial crisis as illustrated in the chart below:-60.00%-50.00%-40.00%-30.00%-20.00%-10.00%0.00%10.00%September-07December-07March-08June-08September-08December-08March-09June-09September-09December-09

311、March-10June-10September-10December-10S&P500MSCI EAFENIKKEI 225FTSE 100-35.80%-11.35%-19.53%4.60%The response to these challenges by governments and central banks around the world of providing additional fiscal and monetary stimulus led to an investor environment that favored riskier assets as yield

312、s on less risky government bonds reached record lows.As a result,most global equity markets achieved positive returns in 2010 with the S&P 500 climbing almost 13%,the FTSE 100 rising 9%,and the MSCI EAFE index gaining nearly 5%.The exception was the equity market in Japan which declined 3%as the str

313、ength in the Japanese Yen,up almost 15%against the U.S.Dollar in 2010,negatively impacted the profits of Japanese exporters and multinational corporations.The table below summarizes the year ended December 31 returns of several major market indices for 2010,2009,and 2008:Index Year ended December 31

314、,2010 2009 2008 S&P 500 12.8%23.5%(37.0%)FTSE 100 9.0%22.1%(28.0%)Nikkei 225 (3.0%)19.0%(41.1%)MSCI EAFE 4.9%27.8%(45.1%)24 Both Treasury markets and corporate credit markets achieved positive returns in 2010 as well.Treasury securities benefited from the combination of the“flight to quality”trade i

315、n the first half of the year,coinciding with the U.S.equity market flash crash and increased risk of default by some European governments,as well as the Federal Reserve beginning the second round of quantitative easing,a process whereby the Federal Reserve creates new money to purchase Treasury secu

316、rities.For the year,10-year Treasury notes gained 8%while shorter dated 3-and 5-year notes gained 5%and 7%respectively.Corporate credit markets benefited from improved fundamentals as earnings improved and corporations stockpiled cash.Further,the stimulus efforts from central bankers around the glob

317、e provided support as yields on government securities reached record lows,and fixed income investors moved out the credit risk curve in search of higher yields.For the year,investment grade credit gained 9.0%while high-yield bonds returned 14.6%.Invesco continued to make progress in a number of area

318、s that better positioned our company as the markets continue their measured return to pre-financial crisis levels.Throughout the course of 2010,the companys financial performance strengthened.In addition,during this period,Invesco continued to strengthen its competitive position with respect to inve

319、stment performance,maintained its focus on its clients,and enhanced its profile in the industry.A critical factor in Invescos ability to weather the economic storms of the past three years was our integrated approach to risk management.Our risk management framework provides the basis for consistent

320、and meaningful risk dialogue up,down and across the company.Our Global Performance Measurement and Risk group provides senior management and the Board with insight into core investment risks,while our Corporate Risk Management Committee facilitates a focus on strategic,operational and all other busi

321、ness risks.Further,business component,functional,and geographic risk management committees maintain an ongoing risk assessment process that provides a bottom-up perspective on the specific risk areas existing in various domains of our business.Through this regular and consistent risk communication,t

322、he Board has reasonable assurance that all material risks of the company are being addressed and that the company is propagating a risk-aware culture in which effective risk management is built into the fabric of the business.In addition,we benefited from having a diversified asset base.One of Inves

323、cos core strengths,and a key differentiator for the company within the industry,is our broad diversification across client domiciles,asset classes and distribution channels.Our geographical diversification recognizes growth opportunities in different parts of the world.Invesco is also diversified by

324、 asset class,with approximately 48%of our assets under management in equities and the remaining 52%invested in fixed income and other investments.This broad diversification enables Invesco to withstand different market cycles and take advantage of growth opportunities in various markets and channels

325、.On June 1,2010,the company acquired Morgan Stanleys retail asset management business,including Van Kampen Investments(the“acquired business or the“acquisition”)in exchange for a combination of$770.0 million in cash paid and 30.9 million common shares and common share equivalents,which were subseque

326、ntly sold,as converted,to unrelated third parties.The acquisition added assets under management across equity,fixed income and alternative asset classes(including mutual funds,variable insurance funds,separate accounts and UITs).More specifically,this acquisition:Expanded the depth and breadth of th

327、e companys investment strategies,enabling the company to offer an even more comprehensive range of investment capabilities and vehicles to its clients around the world;Enhanced the companys ability to serve U.S.clients by positioning Invesco among the leading U.S.investment managers by assets under

328、management(AUM),diversity of investment teams and client profiles;Deepened Invescos relationships with clients and strengthen its overall distribution capabilities;and Further strengthened its position in the Japanese investment management market.Presentation of Managements Discussion and Analysis o

329、f Financial Condition and Results of Operations The company provides investment management services to,and has transactions with,various private equity,real estate,fund-of-funds,collateralized loan obligation products(CLOs),and other investment entities sponsored by the company for the investment of

330、 client assets in the normal course of business.The company serves as the investment manager,making day-to-day investment decisions concerning the assets of the products.Certain of these entities are consolidated under variable interest or voting interest entity consolidation guidance.See Part II,It

331、em 8,Financial Statements and Supplementary Data Note 1,“Accounting Policies”and Note 20,“Consolidated Investment Products,”for additional details.25 Effective January 1,2010,the company adopted guidance now encompassed in Accounting Standards Codification Topic 810,Consolidation.The adoption of thi

332、s new guidance had a significant impact on the presentation of the companys financial statements in 2010,as its provisions required the company to consolidate certain CLOs that were not previously consolidated.In accordance with the standard,prior periods have not been restated to reflect the consol

333、idation of these CLOs.The majority of the companys consolidated investment products balances were CLO-related as of December 31,2010.The collateral assets of the CLOs are held solely to satisfy the obligations of the CLOs.The company has no right to the benefits from,nor does it bear the risks associated with,the collateral assets held by the CLOs,beyond the companys minimal direct investments in