INVESCO Reports Results for Six Months Ended June 30, 2007



    LONDON, August 2 /CNW/ - INVESCO (NYSE:  IVZ) (LSE:  IVZ) (TSX:IVZ) reported
that operating profit increased by 34.5% for the six months ended June 30,
2007 to $508.9 million (six months ended June 30, 2006: $378.4 million).
Diluted earnings per share was $0.39 for the six months ended June 30, 2007
(six months ended June 30, 2006: $0.28).

    "Continued strong investment performance, supported by improved markets,
produced solid operating results during the first half," said Martin L.
Flanagan, President and CEO of INVESCO. "The strong momentum in our business
and continued focus on enhancing our global investment management capabilities
helped us achieve record assets under management during the period. Looking to
the future, we will continue to focus on opportunities that help us grow our
business over the long term."

    
                                                Results for Six Months
                                                        Ended(a)
                                              ----------------------------
                                              June 30,  June 30,
                                                2007      2006    % Change
                                              --------- --------- --------
    Assets under management                     $491.6b   $413.8b    18.8%
    Net revenues(b)                           $1,393.2m $1,172.2m    18.9%
    Operating expenses                          $884.3m   $793.8m    11.4%
    Operating profit                            $508.9m   $378.4m    34.5%
    Net operating margin(c)                       36.5%     32.3%
    Profit before tax                           $494.2m   $355.9m    38.9%
    Earnings per share:
       --basic                                    $0.40     $0.29
       --diluted                                  $0.39     $0.28
    ----------------------------------------- ----------------------------
    

    
                                     Results for Three Months Ended(a)
                                 -----------------------------------------
                                  June   March             June
                                   30,     31,              30,
                                  2007    2007   % Change  2006   % Change
                                 ------- ------- -------- ------- --------
    Assets under management      $491.6b $471.2b     4.3% $413.8b    18.8%
    Net revenues(b)              $722.5m $670.7m     7.7% $588.1m    22.9%
    Operating expenses           $450.8m $433.5m     4.0% $396.4m    13.7%
    Operating profit             $271.7m $237.2m    14.5% $191.7m    41.7%
    Net operating margin(c)        37.6%   35.4%            32.6%
    Profit before tax            $261.5m $232.7m    12.4% $184.2m    42.0%
    Earnings per share:
       --basic                     $0.21   $0.19            $0.15
       --diluted                   $0.21   $0.19            $0.15
    ---------------------------- -----------------------------------------
    

    (a) These results have been prepared in accordance with IFRS.

    (b) Net revenues represent total revenues less third-party distribution,
service and advisory fees.

    (c) Net operating margin is equal to operating profit divided by net
revenues.

    Earnings Summary

    Net revenues for the six months ended June 30, 2007 were $1,393.2 million
(six months ended June 30, 2006: $1,172.2 million). Net revenues for the six
months ended June 30, 2007 included performance fees of $53.2 million (six
months ended June 30, 2006: $45.8 million). Operating expenses totaled $884.3
million for the six months ended June 30, 2007 (six months ended June 30,
2006: $793.8 million). The net operating margin for the six months ended June
30, 2007 was 36.5% (six months ended June 30, 2006: 32.3%)

    Net revenues for the three months ended June 30, 2007 were $722.5 million
(three months ended March 31, 2007: $670.7 million; three months ended June
30, 2006: $588.1 million). Net revenues for the three months ended June 30,
2007 included the recognition of performance fees of $34.4 million (three
months ended March 31, 2007: $18.8 million; three months ended June 30, 2006:
$12.6 million). Operating expenses totaled $450.8 million for the three months
ended June 30, 2007 (three months ended March 31, 2007: $433.5 million; three
months ended June 30, 2006: $396.4 million). The net operating margin for the
three months ended June 30, 2007 was 37.6% (three months ended March 31, 2007:
35.4%; three months ended June 30, 2006: 32.6%).

    During the quarter, we completed our evaluation of the assets and
liabilities acquired in connection with the purchase of WL Ross & Co., which
closed in October 2006. As a result of this evaluation, $100.0 million
initially included in goodwill has been reclassified to intangible assets
associated with post acquisition employment arrangements, to be amortized over
a period of approximately five years. Non-cash amortization of $15.0 million
has been recorded during the quarter (representing three cumulative quarters
of amortization).

    Capital Management

    Net debt (total debt less cash and cash equivalents) as of June 30, 2007
was $330.8 million compared to $515.1 million as of March 31, 2007 and $483.1
million as of December 31, 2006.

    On January 15, 2007, the company repaid $300.0 million of 5.9% senior
notes. On April 17, 2007, the company issued $300.0 million five-year 5.625%
senior notes. The net proceeds from the offering were used to repay amounts
outstanding under our credit facility and for general corporate purposes.
Subsequent to quarter end, Standard & Poor's affirmed our BBB+ debt rating and
removed their negative outlook.

    Since the Board's approval of a stock repurchase plan in June, the
company has purchased 2.8 million ordinary shares at a cost of $36.8 million.
These purchases are reflected as an increase in Treasury shares on the balance
sheet at June 30, 2007.

    The Board has declared an interim dividend of $0.082 per share, a 6.5%
increase over the prior year (2006: $0.077 per share). The ex-dividend date
for the dividend will be September 19, 2007. The interim dividend will be paid
on October 25, 2007, to shareholders on the register on September 21, 2007,
the record date, which will also be the date upon which the foreign exchange
rate will be established for payment to shareholders who receive their
dividends in sterling.

    Assets Under Management

    Assets under management (AUM) at June 30, 2007 were $491.6 billion (March
31, 2007: $471.2 billion). Average AUM during the second quarter of 2007 were
$484.3 billion, compared to $466.9 billion for the first quarter of 2007 and
$414.6 billion for the second quarter of 2006.

    Long-term net inflows for the six months ended June 30, 2007 were $1.4
billion, with inflows of $57.9 billion and outflows of $56.5 billion. For the
three months ended June 30, 2007, long-term net inflows were $0.7 billion,
with inflows of $27.5 billion and outflows of $26.8 billion. Money market net
inflows in the six months ended June 30, 2007 were $1.0 billion (not included
in long-term flows above), with net inflows of $1.8 billion in the second
quarter of 2007 and net outflows of $0.8 billion in the first quarter of 2007.
Further analysis of AUM is included in the supplemental schedules to this
release.

    # # #

    INVESCO is a leading independent global investment manager, dedicated to
helping people worldwide build their financial security. Operating under the
AIM, INVESCO, AIM Trimark, Atlantic Trust, INVESCO Perpetual, PowerShares and
WL Ross brands, INVESCO strives to deliver outstanding products and services
through a comprehensive array of enduring investment solutions for our retail,
institutional and private wealth management clients around the world. The
company is listed on the London, New York and Toronto stock exchanges with the
symbol "IVZ." Additional information is available at www.invesco.com.

    Members of the investment community and general public are invited to
listen to the conference call today, Thursday, August 2, 2007, at 2:30 p.m.
BST (9:30 a.m. EDT), by dialing one of the following numbers: 1-517-268-4676
or 1-888-455-2053 for U.S. callers. An audio replay of the conference call
will be available until Thursday, August 9, 2007, at 10:00 p.m. BST (5:00 p.m.
EDT) by calling 1-203-369-0633 or 1-866-408-8449 for U.S. callers. The
presentation slides that will be reviewed during the conference call will be
available on INVESCO's Web site at www.invesco.com.

    # # #

    This release may include statements that constitute "forward-looking
statements" under the United States securities laws. Forward-looking
statements include information concerning possible or assumed future results
of our operations, earnings, liquidity, cash flow and capital expenditures,
industry or market conditions, assets under management, acquisition activities
and the effect of completed acquisitions, debt levels and the ability to
obtain additional financing or make payments on our debt, 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
release, words such as "believes," "expects," "anticipates," "intends,"
"plans," "estimates," "projects" 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-looking statements are not guarantees of performance. Although we
make these statements based on assumptions believed to be reasonable, there
can be no assurance that actual results will not materially differ from our
expectations. We caution you not to rely unduly on any forward-looking
statements and urge you to carefully consider the risks described in our most
recent Annual Report on Form 20-F, as filed with the U.S. Securities and
Exchange Commission. You may obtain this report from the SEC's website at
www.sec.gov.

    
                                 INVESCO PLC
                        Consolidated Income Statement
     (Unaudited, in millions, other than per share amounts and headcount)

                                             Six Months Ended
                                                  June 30,
                                            ------------------- ----------
                                                2007      2006  % Change
                                            --------- --------- ----------
    Revenues
     Management                             $1,547.1  $1,246.0      24.2%
     Service and distribution                  291.7     268.6       8.6%
     Other                                      52.5      56.7      (7.4)%
                                            --------- --------- ----------
    Total revenues                           1,891.3   1,571.3      20.4%
     Third-party distribution, service and
      advisory fees                           (498.1)   (399.1)     24.8%
                                            --------- --------- ----------
    Net revenues                             1,393.2   1,172.2      18.9%
                                            --------- --------- ----------

    Operating expenses
     Compensation                              556.2     504.8      10.2%
     Marketing                                  73.4      71.7       2.4%
     Property and office                        58.7      54.0       8.7%
     Technology and telecommunications          57.5      62.2      (7.6)%
     General and administrative                138.5     101.1      37.0%
                                            --------- --------- ----------
    Total operating expenses                   884.3     793.8      11.4%
                                            --------- --------- ----------
    Operating profit                           508.9     378.4      34.5%

    Interest income                             22.7      10.3     120.4%
    Other realized gains                        14.1       7.6      85.5%
    Other realized losses                       (6.2)     (3.8)     63.2%
    Interest expense                           (45.3)    (36.6)     23.8%
                                            --------- --------- ----------
    Profit before taxation                     494.2     355.9      38.9%
    Taxation - U.K.                            (55.5)    (37.4)     48.4%
    Taxation - outside of the U.K.            (115.0)    (92.8)     23.9%
                                            --------- --------- ----------
    Profit after taxation                      323.7     225.7      43.4%
    Profit attributable to minority
     interests                                  (0.9)     (1.1)    (18.2)%
                                            --------- --------- ----------
    Profit attributable to equity holders
     of the parent                            $322.8    $224.6      43.7%
                                            --------- --------- ----------

    Earnings per share:
       ---basic                                $0.40     $0.29
       ---diluted                              $0.39     $0.28

    Average shares outstanding:
       ---basic                                798.4     787.0
       ---diluted                              820.2     807.5

    Ending Headcount                           5,392     5,485

    Final dividend paid per share             $0.104    $0.098
    Final dividend paid                        $86.4     $80.3
    Interim dividend per share                $0.082    $0.077
    Interim dividend                           $68.3     $63.3
    

    
                                 INVESCO PLC
                        Consolidated Income Statement
     (Unaudited, in millions, other than per share amounts and headcount)

                              Q207    Q107   % Change    Q206   % Change
                             ------- ------- ---------- ------- ----------
    Revenues
     Management              $810.0  $737.1       9.9%  $625.9      29.4%
     Service and
      distribution            148.3   143.4       3.4%   133.0      11.5%
     Other                     28.3    24.2      16.9%    29.4      (3.7)%
                             ------- ------- ---------- ------- ----------
    Total revenues            986.6   904.7       9.1%   788.3      25.2%
     Third-party
      distribution, service
      and advisory fees      (264.1) (234.0)     12.9%  (200.2)     31.9%
                             ------- ------- ---------- ------- ----------
    Net revenues              722.5   670.7       7.7%   588.1      22.9%
                             ------- ------- ---------- ------- ----------

    Operating expenses
     Compensation             272.5   283.7      (3.9)%  251.4       8.4%
     Marketing                 36.2    37.2      (2.7)%   35.6       1.7%
     Property and office       29.2    29.5      (1.0)%   27.0       8.1%
     Technology and
      telecommunications       29.3    28.2       3.9%    30.1      (2.7)%
     General and
      administrative           83.6    54.9      52.3%    52.3      59.8%
                             ------- ------- ---------- ------- ----------
    Total operating expenses  450.8   433.5       4.0%   396.4      13.7%
                             ------- ------- ---------- ------- ----------
    Operating profit          271.7   237.2      14.5%   191.7      41.7%

    Interest income            12.4    10.3      20.4%     5.2     138.5%
    Other realized gains        5.6     8.5     (34.1)%    6.7     (16.4)%
    Other realized losses      (5.5)   (0.7)      N/A     (0.1)      N/A
    Interest expense          (22.7)  (22.6)      0.4%   (19.3)     17.6%
                             ------- ------- ---------- ------- ----------
    Profit before taxation    261.5   232.7      12.4%   184.2      42.0%
    Taxation - U.K.           (29.5)  (26.0)     13.5%   (19.4)     52.1%
    Taxation - outside of
     the U.K.                 (60.7)  (54.3)     11.8%   (47.4)     28.1%
                             ------- ------- ---------- ------- ----------
    Profit after taxation     171.3   152.4      12.4%   117.4      45.9%
    Profit attributable to
     minority interests        (0.3)   (0.6)    (50.0)%   (0.3)      0.0%
                             ------- ------- ---------- ------- ----------
    Profit attributable to
     equity holders of the
     parent                  $171.0  $151.8      12.6%  $117.1      46.0%
                             ------- ------- ---------- ------- ----------

    Earnings per share:
       ---basic               $0.21   $0.19              $0.15
       ---diluted             $0.21   $0.19              $0.15

    Average shares
     outstanding:
       ---basic               799.8   797.8              783.2
       ---diluted             821.2   820.0              804.0

    Ending Headcount          5,392   5,432              5,485
    

    
                                 INVESCO PLC
                          Consolidated Balance Sheet
                           (Unaudited, in millions)

                                             June 30,  December  June 30,
                                                2007    31, 2006    2006
                                             --------- --------- ---------

    Non-current assets
        Goodwill                             $5,055.6  $4,906.6  $4,344.9
        Intangible assets                       274.9     296.7      92.2
        Property and equipment                  157.7     165.8     176.1
        Deferred sales commissions               54.3      55.9      67.6
        Deferred tax assets                     236.4     212.1     152.2
        Investments                             154.2     158.1     188.5
                                             --------- --------- ---------
                                              5,933.1   5,795.2   5,021.5
    Current assets
        Trade and other receivables           1,328.3     997.4   1,006.9
        Investments                             126.8     134.9      85.3
        Cash and cash equivalents               812.0     789.6     479.8
        Assets held for policyholders         1,848.5   1,574.9   1,328.9
                                             --------- --------- ---------
                                              4,115.6   3,496.8   2,900.9

    Total assets                             10,048.7   9,292.0   7,922.4

    Non-current liabilities
         Long-term debt                      (1,142.8)   (972.7)   (977.3)
         Provisions                            (465.3)   (461.8)   (157.1)
                                             --------- --------- ---------
                                             (1,608.1) (1,434.5) (1,134.4)
    Current liabilities
        Current maturities of long-term debt       --    (300.0)   (309.7)
        Trade and other payables             (1,580.1) (1,384.3) (1,247.1)
        Taxation                               (130.0)    (95.4)    (45.3)
        Provisions                             (199.3)   (227.8)    (49.1)
        Policyholder liabilities             (1,848.5) (1,574.9) (1,328.9)
                                             --------- --------- ---------
                                             (3,757.9) (3,582.4) (2,980.1)

    Total liabilities                        (5,366.0) (5,016.9) (4,114.5)

    Net assets                               $4,682.7  $4,275.1  $3,807.9
                                             --------- --------- ---------

    Equity
        Share capital                           $84.3     $83.2     $82.4
        Share premium                           302.7     205.1     135.7
        Treasury shares                         (36.8)       --        --
        Shares held by employee trusts         (686.1)   (601.7)   (569.4)
        Exchangeable shares                     356.3     377.4     412.7
        Retained earnings                     1,325.4   1,054.9     797.4
        Other reserves                        3,330.9   3,151.2   2,944.6
                                             --------- --------- ---------
        Equity attributable to equity
         holders of the parent                4,676.7   4,270.1   3,803.4
        Equity attributable to minority
         interests                                6.0       5.0       4.5
                                             --------- --------- ---------
    Total equity                             $4,682.7  $4,275.1  $3,807.9
                                             --------- --------- ---------
    

    
                                 INVESCO PLC
                 Consolidated Statement of Changes in Equity
                           (Unaudited, in millions)

                            Share                      Shares
                            Capital  Share   Treasury  Held by  Exchange-
                            Shares   Premium  Shares   Employee   able
                                                        Trusts    Share
    ---------------------- -------- -------- -------- --------- ----------
    January 1, 2007            83.2    205.1      --    (601.7)    377.4
    ---------------------- -------- -------- -------- --------- ----------
    Profit attributable to
     equity holders of the
     parent                      --       --      --        --        --
    Currency translation
     differences on
     investments in
     overseas subsidiaries       --       --      --        --        --
    Net movement on
     available-for-sale
     reserve                     --       --      --        --        --
    ---------------------- -------- -------- -------- --------- ----------
    Total recognized
     income and expense
     attributable to
     equity holders of the
     parent                      --       --      --        --        --
    ---------------------- -------- -------- -------- --------- ----------
    Total equity before
     transactions with
     owners                    83.2    205.1      --    (601.7)    377.4
    Employee share plans:
     Share-based
      compensation credit        --       --      --        --        --
     Vested shares               --       --      --      29.8        --
     Exercise of options        0.9     75.9      --        --        --
     Increase in shares
      held by employee
      share ownership
      trusts                     --       --      --    (114.2)       --
    Increase in treasury
     shares                      --       --   (36.8)       --        --
    Tax taken to/recycled
     from equity                 --       --      --        --        --
    Dividends                    --       --      --        --        --
    Issuance of new shares
     for acquisition earn-
     out                        0.1      0.7      --        --        --
    Conversion of
     exchangeable shares
     into ordinary shares       0.1     21.0      --        --     (21.1)
    Total amounts
     attributable to
     minority interests          --       --      --        --        --
    ---------------------- -------- -------- -------- --------- ----------
    June 30, 2007              84.3    302.7   (36.8)   (686.1)    356.3
    ---------------------- -------- -------- -------- --------- ----------


    ---------------------- -------- -------- -------- --------- ----------
    January 1, 2006            81.8     85.0      --    (413.5)    431.8
    ---------------------- -------- -------- -------- --------- ----------
    Profit attributable to
     equity holders of the
     parent                      --       --      --        --        --
    Currency translation
     differences on
     investments in
     overseas subsidiaries       --       --      --        --      (0.6)
    Net movement on
     available-for-sale
     reserve                     --       --      --        --        --
    ---------------------- -------- -------- -------- --------- ----------
    Total recognized
     income and expense
     attributable to
     equity holders of the
     parent                      --       --      --        --      (0.6)
    ---------------------- -------- -------- -------- --------- ----------
    Total equity before
     transactions with
     owners                    81.8     85.0      --    (413.5)    431.2
    Employee share plans:
     Share-based
      compensation credit        --       --      --        --        --
     Exercise of options        0.5     31.5      --        --        --
     Increase in shares
      held by employee
      share ownership
      trusts                     --       --      --    (155.9)       --
    Dividends                    --       --      --        --        --
    Issuance of new shares
     for acquisition earn-
     out                         --      0.8      --        --        --
    Conversion of
     exchangeable shares
     into ordinary shares       0.1     18.4      --        --     (18.5)
    Total amounts
     attributable to
     minority interests          --       --      --        --        --
    ---------------------- -------- -------- -------- --------- ----------
    June 30, 2006              82.4    135.7      --    (569.4)    412.7
    ---------------------- -------- -------- -------- --------- ----------

                                 INVESCO PLC
                 Consolidated Statement of Changes in Equity
                          (Unaudited, in millions)


                                  Retained   Other    Minority
                                   Earnings  Reserves  Interests  Total
    ---------------------------   --------- --------- ---------- --------
    January 1, 2007                1,054.9   3,151.2         5.0 4,275.1
    ---------------------------   --------- --------- ---------- --------
    Profit attributable to
     equity holders of the
     parent                          322.8        --          --   322.8
    Currency translation
     differences on investments
     in overseas subsidiaries         17.0     162.1         0.1   179.2
    Net movement on available-
     for-sale reserve                   --      (5.7)         --    (5.7)
    ---------------------------   --------- --------- ---------- --------
    Total recognized income and
     expense attributable to
     equity holders of the
     parent                          339.8     156.4         0.1   496.3
    ---------------------------   --------- --------- ---------- --------
    Total equity before
     transactions with owners      1,394.7   3,307.6         5.1 4,771.4
    Employee share plans:
     Share-based compensation
      credit                          46.9        --          --    46.9
     Vested shares                   (29.8)       --          --      --
     Exercise of options                --        --          --    76.8
     Increase in shares held by
      employee share ownership
      trusts                            --        --          --  (114.2)
    Increase in treasury shares         --        --          --   (36.8)
    Tax taken to/recycled from
     equity                             --      18.0          --    18.0
    Dividends                        (86.4)       --          --   (86.4)
    Issuance of new shares for
     acquisition earn-out               --       5.3          --     6.1
    Conversion of exchangeable
     shares into ordinary
     shares                             --        --          --      --
    Total amounts attributable
     to minority interests              --        --         0.9     0.9
    ---------------------------   --------- --------- ---------- --------
    June 30, 2007                  1,325.4   3,330.9         6.0 4,682.7
    ---------------------------   --------- --------- ---------- --------


    ---------------------------   --------- --------- ---------- --------
    January 1, 2006                  638.7   2,789.2         3.3 3,616.3
    ---------------------------   --------- --------- ---------- --------
    Profit attributable to
     equity holders of the
     parent                          224.6        --          --   224.6
    Currency translation
     differences on investments
     in overseas subsidiaries        (20.1)    168.5         0.1   147.9
    Net movement on available-
     for-sale reserve                   --     (13.1)         --   (13.1)
    ---------------------------   --------- --------- ---------- --------
    Total recognized income and
     expense attributable to
     equity holders of the
     parent                          204.5     155.4         0.1   359.4
    ---------------------------   --------- --------- ---------- --------
    Total equity before
     transactions with owners        843.2   2,944.6         3.4 3,975.7
    Employee share plans:
     Share-based compensation
      credit                          34.5        --          --    34.5
     Exercise of options                --        --          --    32.0
     Increase in shares held by
      employee share ownership
      trusts                            --        --          --  (155.9)
    Dividends                        (80.3)       --          --   (80.3)
    Issuance of new shares for
     acquisition earn-out               --        --          --     0.8
    Conversion of exchangeable
     shares into ordinary
     shares                             --        --          --      --
    Total amounts attributable
     to minority interests              --        --         1.1     1.1
    ---------------------------   --------- --------- ---------- --------
    June 30, 2006                    797.4   2,944.6         4.5 3,807.9
    ---------------------------   --------- --------- ---------- --------
    

    
                                 INVESCO PLC
                       Consolidated Cash Flow Statement
                           (Unaudited, in millions)

                                                         Six Months Ended
                                                              June 30,
                                                         -----------------
                                                            2007     2006
                                                         -------- --------
    Operating activities:
    Profit attributable to equity holders of the parent   $322.8   $224.6
    Adjustments to reconcile profit to net cash provided
     by operating activities:
     Amortization and depreciation                          47.4     33.2
     Amortization of share-related compensation             49.8     43.8
     Increase in receivables                              (341.8)  (177.0)
     Increase/(decrease) in payables                       250.3   (106.6)
     Gain on disposal of assets                             (2.9)    (1.4)
     Decrease/(increase) in current investments             19.8    (51.8)
                                                         -------- --------
    Net cash inflow/(outflow) from operating activities    345.4    (35.2)

    Investing activities:
     Purchases of property and equipment                   (16.7)   (19.8)
     Disposal of property and equipment                       --      1.2
     Purchases of long-term investments                    (36.4)   (80.2)
     Disposal of long-term investments                      26.3     29.8
     Acquisitions of businesses                             (6.4)    (1.4)
                                                         -------- --------
    Net cash outflow from investing activities             (33.2)   (70.4)

    Financing activities:
     Issuance of new ordinary share capital                 76.8     31.7
     Purchases of treasury shares                          (12.8)      --
     Purchases of shares held by employee share
      ownership trusts                                    (146.4)  (155.9)
     Dividend paid                                         (86.4)   (80.3)
     Net (payment)/draw on credit facility                (129.0)    64.0
     Issuance of senior notes                              300.0       --
     Repayment of senior notes                            (300.0)      --
                                                         -------- --------
    Net cash outflow from financing activities            (297.8)  (140.5)

    Increase/(decrease) in cash and cash equivalents        14.4   (246.1)
    Foreign exchange                                         8.0     10.2
    Cash and cash equivalents, beginning of period         789.6    715.7
                                                         -------- --------
    Cash and cash equivalents, end of period              $812.0   $479.8
                                                         -------- --------

    Supplemental Cash Flow Information:
    Interest paid                                         $(50.7)  $(38.6)
    Interest received                                      $22.6    $11.1
    Taxes paid                                           $(140.6) $(126.8)
    

    Notes

    1. Accounting policies

    The accounting policies applied to the information in the earnings
release follow International Financial Reporting Standards (IFRS) in effect as
of the date of this release and are consistent with those applied in the 2006
Annual Report. Refer to the 2006 Annual Report, available at www.invesco.com,
for a more detailed discussion of these policies. The accounting policies
applied to the information in this earnings release are also consistent with
those that are expected to be applied in the 2007 Annual Report. IFRS comprise
standards and interpretations approved by the International Accounting
Standards Board and its predecessors. As of June 30, 2007, all issued IFRS
were also adopted by the European Commission, with the exception of IFRS 8,
"Operating Segments," which is effective for periods commencing January 1,
2009, but which is not expected to result in changes to the company's
single-segment approach, and the amendment to IAS 23, "Borrowing Costs," which
is also effective for periods commencing January 1, 2009, and which is not
expected to have a material impact on the company's consolidated financial
statements. IFRS 7, "Financial Instruments: Disclosures," and the related
amendment to IAS 1, "Presentation of Financial Statements, Capital
Disclosures," are effective for periods commencing January 1, 2007. The
disclosure requirements of these standards will be reflected in the company's
2007 Annual Report. The company has adopted IFRIC 11, "Group and Treasury
Share Transactions," which has provided additional guidance for accounting for
share-based payment transactions upon award vesting between the parent and its
subsidiaries. The application of IFRIC 11 did not have a material impact on
the company's consolidated financial statements.

    The interim financial information has been prepared under the measurement
and recognition principles of IFRS as permitted by the Committee of European
Securities Regulators and does not purport to be a complete or condensed set
of interim financial statements in accordance with IAS 34, "Interim Financial
Reporting."

    Certain prior year balance sheet amounts have been reclassified to
conform to the current year presentation of those amounts.

    2. Taxation

    A significant proportion of the tax charge arose from U.S., U.K., and
Canadian operations. The effective tax rate was 34.5% for the six months ended
June 30, 2007 (the six months ended June 30, 2006: 36.6%).

    3. Earnings per share

    Basic earnings per share is based on the weighted average number of
ordinary and exchangeable shares outstanding during the respective periods,
excluding shares purchased and held by employee share ownership trusts and
held in treasury. Diluted earnings per share takes into account the effect of
the potential issuance of ordinary shares.

    
                                               Six Months Ended June 30,
                                                          2007
                                              ----------------------------
    (in millions other than per share               Profit  Number    Per
     amounts)                                  attributable     of   share
                                                 to equity   shares amount
                                                holders of
                                                 the parent
                                              ------------- ------- ------
    Basic earnings per share                         $322.8   798.4  $0.40
                                                                    ------
    Dilutive effect of share-based awards                --    21.8
                                              ------------- ------- ------
    Diluted earnings per share                       $322.8   820.2  $0.39
                                              ------------- ------- ------
    

    
                                               Six Months Ended June 30,
                                                          2006
                                              ----------------------------
    (in millions other than per share               Profit  Number    Per
     amounts)                                  attributable     of   share
                                                 to equity   shares amount
                                                holders of
                                                 the parent
                                              ------------- ------- ------
    Basic earnings per share                         $224.6   787.0  $0.29
                                                                    ------
    Dilutive effect of share-based awards                --    20.5
                                              ------------- ------- ------
    Diluted earnings per share                       $224.6   807.5  $0.28
                                              ------------- ------- ------
    

    4. WL Ross & Co. LLC Acquisition

    In accordance with IFRS 3, "Business Combinations," INVESCO has completed
its evaluation of the assets and liabilities acquired in connection with the
purchase of W L Ross & Co., which closed in October 2006. As a result of this
evaluation, $100.0 million initially included in goodwill has been
reclassified to intangible assets associated with post acquisition employment
arrangements, to be amortized over a period of approximately five years. The
balance sheet as of December 31, 2006 has been adjusted to reflect this
evaluation.

    5. Long-term debt

    On January 15, 2007, $300.0 million of 5.9% senior notes matured. The
company utilized its credit facility to satisfy the maturity and on April 17,
2007 issued $300.0 million of 5.625% senior notes. The notes will mature on
April 17, 2012 and pay interest semi-annually on April 17 and October 17.

    6. Purchases of ordinary shares

    The company's global stock plan trust purchased 9.6 million ordinary
shares at a cost of $114.2 million during the six months ended June 30, 2007.
These shares will be held to satisfy existing and future employee share awards
under share-based payment programs.

    In June 2007, the company purchased 1.3 million ordinary shares at a cost
of $16.8 million. These shares are held in Treasury. On June 29, 2007, the
company entered into an irrevocable, non-discretionary program to purchase
shares on its own behalf up to $20.0 million (or 2.0 million shares) from July
3, 2007 to August 2, 2007. This commitment has been reflected on the balance
sheet at June 30, 2007. The program was completed on July 20, 2007, resulting
in the acquisition of 1.5 million shares at a cost of $20.0 million.

    7. Dividends

    A final dividend in respect of 2006 of $0.104 per share ($86.4 million:
$84.4 million for ordinary shares and $2.0 million for exchangeable shares)
was approved at the Annual General Meeting of Shareholders on May 23, 2007,
and was paid on May 30, 2007.

    The Board has declared an interim dividend in respect of the 2007 year of
$0.082 per share (2006: $0.077 per share), approximately $68.3 million based
upon outstanding shares on June 30, 2007. The interim dividend will be paid on
October 25, 2007, to shareholders on the register on September 21, 2007. The
ex-dividend date for the dividend will be September 19, 2007.

    8. Statutory financial statements

    The financial information shown in this earnings release is unaudited and
does not constitute statutory financial statements. The 2006 Annual Report,
filed with the Registrar of Companies on May 26, 2007, includes an unqualified
audit report in accordance with Section 235 of the Companies Act 1985. This
audit report does not contain a statement under section 237(2) or section
237(3) of the Companies Act 1985.

    INDEPENDENT AUDITOR'S REVIEW REPORT TO INVESCO PLC

    Introduction

    We have been instructed by the company to review the financial
information for the six months ended June 30, 2007 which comprises
consolidated financial statements including the Consolidated Income Statement,
Consolidated Balance Sheets, Consolidated Statement of Changes in Equity,
Consolidated Cash Flow Statements and the related notes 1 to 8. We have read
the other information contained in the interim report and considered whether
it contains any apparent misstatements or material inconsistencies with the
financial information.

    This report is made solely to the company in accordance with guidance
contained in Bulletin 1999/4 "Review of interim financial information" issued
by the Auditing Practices Board. To the fullest extent permitted by law, we do
not accept or assume responsibility to anyone other than the company, for our
work, for this report, or for the conclusions we have formed.

    Directors' responsibilities

    The interim report, including the financial information contained
therein, is the responsibility of, and has been approved by, the directors.
The directors are responsible for preparing the interim report in accordance
with the Listing Rules of the Financial Services Authority which require that
the accounting policies and presentation applied to the interim figures should
be consistent with those applied in preparing the preceding annual accounts
except where any changes, and the reasons for them, are disclosed.

    Review work performed

    We conducted our review in accordance with guidance contained in Bulletin
1999/4 "Review of interim financial information" issued by the Auditing
Practices Board for use in the United Kingdom. A review consists principally
of making enquiries of group management and applying analytical procedures to
the financial information and underlying financial data, and based thereon,
assessing whether the accounting policies and presentation have been
consistently applied, unless otherwise disclosed. A review excludes audit
procedures such as tests of controls and verification of assets, liabilities
and transactions. It is substantially less in scope than an audit performed in
accordance with International Standards on Auditing (UK and Ireland) and
therefore provides a lower level of assurance than an audit. Accordingly we do
not express an audit opinion on the financial information.

    Review conclusion

    On the basis of our review we are not aware of any material modifications
that should be made to the financial information as presented for the six
months ended June 30, 2007.

    
    Ernst & Young LLP
    London
    August 1, 2007
    

    INVESCO PLC

    Quarterly Assets Under Management

    
    (in billions)                        Q207    Q107   % Change    Q206
    ----------------------------------- ----------------------------------
    Beginning Assets                    $471.2  $462.6       1.9%  $410.9
    Inflows                               27.5    30.4      (9.5)%   23.5
    Outflows                             (26.8)  (29.7)     (9.8)%  (21.2)
                                        ------- -------            -------
    Net flows                              0.7     0.7       0.0%     2.3
    Net flows in money market funds and
     other                                 1.8    (0.8)      n/a      2.2
    Market gains/reinvestment             12.8     8.0      60.0%    (6.2)
    Foreign currency                       5.1     0.7     628.6%     4.6
                                        ------- -------            -------
    Ending Assets                       $491.6  $471.2       4.3%  $413.8
                                        ------- -------            -------

    Average long-term AUM                422.8   405.7       4.2%   357.8
    Average institutional money market
     AUM                                  61.5    61.2       0.5%    56.8
                                        ------- -------            -------
    Average AUM                         $484.3  $466.9       3.7%  $414.6
                                        ------- -------            -------
    Net revenue yield on AUM            59.7bps 57.5bps            56.7bps
     (annualized)(a)
    Net revenue yield on AUM before     56.8bps 55.8bps            55.5bps
     performance fees (annualized)
    ----------------------------------- ----------------------------------
    

    
    By channel: (in billions)     Total  Retail  Institutional  Private
                                                                 Wealth
                                                                Management
    ---------------------------- -----------------------------------------
    March 31, 2007(b)            $471.2  $238.4        $216.1       $16.7
    Inflows                        27.5    20.8           5.3         1.4
    Outflows                      (26.8)  (16.4)         (9.0)       (1.4)
                                 ------- ------- ------------- -----------
    Net flows                       0.7     4.4          (3.7)         --
    Net flows in money market
     funds and other                1.8    (0.1)          1.9          --
    Market gains/reinvestment      12.8     8.7           3.5         0.6
    Foreign currency                5.1     4.7           0.4          --
                                 ------- ------- ------------- -----------
    June 30, 2007                $491.6  $256.1        $218.2       $17.3
                                 ------- ------- ------------- -----------
    

    
    By asset       Total  Equity  Fixed   Balanced Money   Stable  Alter-
     class: (in             (c)    Income           Market  Value  natives
     billions)                                                       (d)
    ------------- --------------------------------------------------------
    March 31,
     2007(b)      $471.2  $224.8  $42.8   $38.2    $63.2   $47.4  $54.8
    Inflows         27.5    19.0    2.4     2.7      0.2     0.6    2.6
    Outflows       (26.8)  (14.9)  (3.1)   (3.0)    (0.6)   (2.4)  (2.8)
                  ------- ------- ------- -------- ------- ------ --------
    Net flows        0.7     4.1   (0.7)   (0.3)    (0.4)   (1.8)  (0.2)
    Net flows in
     money market
     funds and
     other           1.8    (0.1)   0.1    (0.1)     1.9      --     --
    Market gains/
     reinvestment   12.8    11.1    0.2     1.0       --     0.5     --
    Foreign
     currency        5.1     3.4    0.4     1.1      0.1      --    0.1
                  ------- ------- ------- -------- ------- ------ --------
    June 30, 2007 $491.6  $243.3  $42.8   $39.9    $64.8   $46.1  $54.7
                  ------- ------- ------- -------- ------- ------ --------
    

    
    By client domicile: (in
     billions)                  Total   U.S.   Canada  U.K.  Europe  Asia
    -------------------------- -------------------------------------------
    March 31, 2007(b)          $471.2  $285.4  $45.3  $78.0  $35.6  $26.9
    Inflows                      27.5    10.1    1.8    6.1    4.6    4.9
    Outflows                    (26.8)  (14.3)  (1.5)  (2.2)  (5.4)  (3.4)
                               ------- ------- ------ ------ ------ ------
    Net flows                     0.7    (4.2)   0.3    3.9   (0.8)   1.5
    Net flows in money market
     funds and other              1.8     1.8     --    0.5   (0.2)  (0.3)
    Market gains/reinvestment    12.8     8.3   (0.5)   2.1    1.3    1.6
    Foreign currency              5.1      --    3.8    1.0    0.2    0.1
                               ------- ------- ------ ------ ------ ------
    June 30, 2007              $491.6  $291.3  $48.9  $85.5  $36.1  $29.8
                               ------- ------- ------ ------ ------ ------
    

    (a) Net revenue yield on AUM is equal to net revenue divided by average
AUM.

    (b) The asset class beginning balances were adjusted to reflect certain
asset reclassifications.

    (c) Includes PowerShares's ETF AUM ($11.7 billion at June 30, 2007),
which are primarily invested in equity securities.

    (d) Assets have been restated beginning December 31, 2006 to reflect an
amended definition of the alternative asset class. The alternative asset class
includes real estate, private equity and absolute return strategies.

    INVESCO PLC

    Year-to-Date Assets Under Management

    
    (in billions)                                June    June
                                                  30,     30,
                                                  2007    2006  % Change
    ------------------------------------------- --------------------------
    Beginning Assets                            $462.6  $386.3      19.8%
    Inflows                                       57.9    46.6      24.2%
    Outflows                                     (56.5)  (42.8)     32.0%
                                                ------- -------
    Net flows                                      1.4     3.8     (63.2)%
    Net flows in money market funds and other      1.0     9.6     (89.6)%
    Market gains/reinvestment                     20.8     9.1     128.6%
    Foreign currency                               5.8     5.0      16.0%
                                                ------- -------
    Ending Assets                               $491.6  $413.8      18.8%
                                                ------- -------

    Average long-term AUM                        414.6   352.6      17.6%
    Average institutional money market AUM        61.6    54.9      12.2%
                                                ------- -------
    Average AUM                                 $476.2  $407.5      16.9%
                                                ------- -------
    Net revenue yield on AUM (annualized)(a)    58.5bps 57.5bps
    Net revenue yield on AUM before performance 56.3bps 55.3bps
     fees (annualized)
    ------------------------------------------- --------------------------
    

    
    By channel: (in billions)     Total  Retail  Institutional  Private
                                                                 Wealth
                                                                Management
    ---------------------------- -----------------------------------------
    December 31, 2006            $462.6  $234.0        $211.8       $16.8
    Inflows                        57.9    42.2          13.0         2.7
    Outflows                      (56.5)  (37.8)        (15.6)       (3.1)
                                 ------- ------- ------------- -----------
    Net flows                       1.4     4.4          (2.6)       (0.4)
    Net flows in money market
     funds and other                1.0    (0.2)          1.2          --
    Market gains/reinvestment      20.8    13.0           6.9         0.9
    Foreign currency                5.8     4.9           0.9          --
                                 ------- ------- ------------- -----------
    June 30, 2007                $491.6  $256.1        $218.2       $17.3
                                 ------- ------- ------------- -----------
    

    
    By asset       Total  Equity  Fixed   Balanced Money   Stable  Alter-
     class: (in             (c)    Income           Market  Value  natives
     billions)                                                       (d)
    ------------- --------------------------------------------------------
    December 31,
     2006(b)      $462.6  $217.6  $42.9   $38.2    $64.1   $46.9  $52.9
    Inflows         57.9    35.9    6.4     5.0      0.6     2.4    7.6
    Outflows       (56.5)  (29.9)  (8.5)   (5.3)    (1.1)   (4.2)  (7.5)
                  ------- ------- ------- -------- ------- ------ --------
    Net flows        1.4     6.0   (2.1)   (0.3)    (0.5)   (1.8)   0.1
    Net flows in
     money market
     funds and
     other           1.0    (0.2)   0.7    (0.7)     1.2      --     --
    Market gains/
     reinvestment   20.8    16.2    0.6     1.5       --     1.0    1.5
    Foreign
     currency        5.8     3.7    0.7     1.2       --      --    0.2
                  ------- ------- ------- -------- ------- ------ --------
    June 30, 2007 $491.6  $243.3  $42.8   $39.9    $64.8   $46.1  $54.7
                  ------- ------- ------- -------- ------- ------ --------
    

    
    By client domicile: (in
     billions)                  Total   U.S.   Canada  U.K.  Europe  Asia
    -------------------------- -------------------------------------------
    December 31, 2006(b)       $462.6  $280.5  $43.2  $74.6  $38.1  $26.2
    Inflows                      57.9    22.6    4.1   11.0   10.9    9.3
    Outflows                    (56.5)  (26.5)  (3.1)  (4.2) (14.6)  (8.1)
                               ------- ------- ------ ------ ------ ------
    Net flows                     1.4    (3.9)   1.0    6.8   (3.7)   1.2
    Net flows in money market
     funds and other              1.0     1.1    0.1    0.4   (0.2)  (0.4)
    Market gains/reinvestment    20.8    13.6    0.8    2.5    1.4    2.5
    Foreign currency              5.8      --    3.8    1.2    0.5    0.3
                               ------- ------- ------ ------ ------ ------
    June 30, 2007              $491.6  $291.3  $48.9  $85.5  $36.1  $29.8
                               ------- ------- ------ ------ ------ ------
    

    (a) Net revenue yield on AUM is equal to net revenue divided by average
AUM.

    (b) The asset class beginning balances were adjusted to reflect certain
asset reclassifications.

    (c) Includes PowerShares's ETF AUM ($11.7 billion at June 30, 2007),
which are primarily invested in equity securities.

    (d) Assets have been restated beginning December 31, 2006 to reflect an
amended definition of the alternative asset class. The alternative asset class
includes real estate, private equity and absolute return strategies.

    INVESCO PLC

    Additional Income and Expense Information

    The quarterly results include the following items:

    
                                                        2007       2006
                                                     ----------- ---------
    $ millions                                         Q2    Q1   Q2   Q1
                                                     ------ ---- ---- ----

    Operating items:
    Management revenues:
    - Performance fees                                34.4  18.8 12.6 33.2
    General and administration:
     - WL Ross intangible asset amortization         (15.0)   --   --   --
    




For further information:

For further information: INVESCO Aaron Uhde, +1 404 479 2956 or Michael
Perman, +44 (0) 207 065 3942

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