Invesco (IVZ) risk factors, FY2025 10-K

Risks Related to Market Dynamics and Volatility

1. 01Volatility and disruption in global or regional capital and credit markets, equity, debt, private and commodity markets, as well as adverse changes in the global economy, could negatively affect our AUM, revenues, net income and liquidity28% rewritten
2. 02Our revenues and net income would likely be adversely affected by any reduction in AUM as a result of either a decline in market value of such assets or net outflows, each of which would reduce the investment management fees we earn
3. 03Our revenues and net income from money market and other fixed income assets may be harmed by interest rate volatility, prolonged high or low rates, liquidity, and credit volatility25% rewritten
4. 04Our financial condition and liquidity would be adversely affected by losses on our seed capital and co-investments
5. 05As many of our subsidiary operations are located outside of the U.S. and have functional currencies other than the U.S. Dollar, changes in the exchange rates to the U.S. Dollar impact our reported financial results26% rewritten

Risks Related to Investment Performance and Competition

1. 06Poor investment performance of our products could reduce the level of our AUM or affect our sales, and negatively impact our revenues and net income
2. 07Failure to properly address the increased transformative pressures affecting the asset management industry could negatively impact our business24% rewritten
3. 08Competitive pressures may force us to reduce the fees we charge to clients, which could reduce our profitability
4. 09The occurrence of any such events may expose us to reputational harm, or cause our AUM, revenues and net income to decline
5. 10We may be unable to develop new products and services, and the development of new products and services may expose us to additional costs or operational risk
6. 11The failure or negative performance of products offered by competitors may have a negative impact on similar Invesco products irrespective of our performance21% rewritten

Risks Related to Human Capital, Operations and Technology

1. 12Our investment management professionals and other 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 AUM, revenues and net income
2. 13Changes in the distribution channels on which we depend could reduce our net income and hinder our growth
3. 14Failure to comply with client contractual requirements and/or investment guidelines could result in costs of correction, damage awards and/or regulatory fines and penalties against us and loss of revenues due to client terminations
4. 15Our investment advisory agreements are subject to termination or non-renewal, and our fund and other investors may withdraw their assets at any time
5. 16The quantitative models we use and our index tracking investment solutions may contain errors, which could result in financial losses or adversely impact product performance and client relationships
6. 17Disclosure requirements and expectations related to sustainability or ESG are evolving. Our inability to meet these requirements and expectations could cause regulatory or reputational harm and affect our ability to attract and retain clients
7. 18If our reputation is harmed, we could suffer losses in our AUM, revenues and net income
8. 19The lack of soundness of other financial institutions could adversely affect us or the client portfolios we manage
9. 20Our ability to manage and grow our business successfully can be impeded by systems and other technological limitations
10. 21If we are unable to successfully recover from a man-made or natural disaster, severe weather event, health crisis or pandemic or other business continuity problem, we could suffer material financial loss, loss of human capital, regulatory actions, reputational harm or legal liability26% rewritten
11. 22Our business is vulnerable to deficiencies and failures in support systems, including data management, and customer service functions that could lead to breaches and errors or reputational harm, resulting in loss of customers or claims against us or our subsidiaries
12. 23Disruptions in the markets, to market participants and to the operations of third parties whose functions are integral to our ETF platforms may adversely affect the prices at which ETFs trade, particularly during periods of market volatility29% rewritten
13. 24The recent advancements in and increased use of AI present risks and challenges that may adversely impact our business55% rewritten

Risks Related to Accounting, Capital Management and Liquidity

1. 25The carrying value of goodwill and other intangible assets on our balance sheet has become impaired in the past and could become impaired in the future, which would adversely affect our results of operations28% rewritten
2. 26Our Credit Agreements impose operating covenants that impact our ability to conduct certain activities and, if amounts borrowed under our Credit Agreements were subject to accelerated repayment, we might not have sufficient assets or liquidity to repay such amounts in full49% rewritten
3. 27We issued perpetual preferred stock having a value of approximately $4 billion, of which approximately $2.5 billion remains outstanding, which could adversely affect our ability to raise additional capital and may limit our ability to fund other priorities25% rewritten
4. 28Failure to maintain adequate corporate and contingent liquidity may cause our AUM, revenues and net income to decline, as well as harm our prospects for growth36% rewritten
5. 29Distribution of earnings of our subsidiaries may be subject to limitations, including regulatory net capital requirements

Risks Related to Strategic Transactions

1. 30We may engage in strategic transactions that could create risks

Risks Related to our Significant Shareholders

1. 31Future sales of shares of our common stock could adversely impact the trading price of our common stock
2. 32MassMutual has the ability to significantly influence our business, and MassMutual’s interest in our business may be different from that of other shareholders

Risks Related to Regulatory and Legal Matters

1. 33We operate in an industry that is highly regulated in most countries, and any enforcement action or proceeding against us or significant changes in the laws or regulations governing our business or industry could damage our reputation or decrease our AUM, revenues, net income or liquidity42% rewritten
2. 34Regulators in the U.S., U.K., EU and Asia, have promulgated or are considering whether to promulgate various new or revised regulatory measures pertaining to financial services, including investment management74% rewritten
3. 35Civil litigation and governmental investigations and enforcement actions or proceedings against us could adversely affect our AUM and future net income and increase our costs of doing business25% rewritten
4. 36Legislative and other measures that may be taken by governmental authorities could materially increase our tax burden or otherwise adversely affect our net income or liquidity
5. 37Examinations and audits by tax authorities could result in additional tax payments for prior periods
6. 38Bermuda law differs from the laws in effect in the U.S. and may afford less protection to shareholders
7. 39Because we are incorporated in Bermuda, it may be difficult for shareholders to enforce non-monetary judgments against us or any judgment against us or our directors and officers. Shareholders may have to seek independent advice regarding the commencement of proceedings or service of foreign process in Bermuda
8. 40We have anti-takeover provisions in our Bye-Laws that may discourage a change of control

General Risk Factors

1. 41Our ability to maintain our credit ratings and to access the capital markets in a timely manner should we seek to do so depends on a number of factors
2. 42Insurance may not be available at a reasonable cost to protect us from loss or liability96% rewritten