Fund house Invesco has written down the value of part of its non-US business by £295mn in its latest accounts, FTAdviser can reveal.
Accounts for Invesco UK limited, which despite the name is the holding company for all of the business operations in Europe, Middle East, and Africa (EMEA), showed the business recorded a loss after tax of £200.5mn for the 2022 calendar year, compared with a profit of £376.6mn the prievious year.
The accounts attributed the dramatic reversal to a combination of lower dividends paid by its various subsidiaries, and a write-down in the value of one of the two UK investment management subsidiaries of £295mn.
A writedown is a paper loss, not a cash charge, so Invesco has not had to pay out that sum of money.
A statement in the accounts stated the write-down was the result of “ongoing macroeconomic pressures caused by the ongoing conflict in Ukraine and global inflationary pressure".
That subsidiary is now valued in the accounts at £104mn.
The company values the Invesco EMEA business, that is, everything not in the US, at £926.5mn at the end of December 2022, a figure which includes the write-down mentioned above.
While confirming the details about the structure of the company, its subsidiaries and the write-downs, a representative for Invesco declined to confirm which of the subsidiaries has had the value written down.
An examination of the accounts showed there are 11 subsidiaries of Invesco UK Limited, registered in Britain, specifically at the Henley headquarters. There are other subsidiaries around the world.
The company confirmed two of those 11 subsidiaries perform investment management services, and so one of those has had the value written down.
The accounts showed Invesco’s EMEA operation had a wage bill, which includes pension and social security contributions of £200mn in 2022, which was down from £220mn the previous year.
The company had 938 employees at the end of December 2022, compared with 920 the previous year.
Of those 938 employees, 281 worked in roles connected to investment management, while 303 worked in roles connected to distribution and administration.
Stephanie Butcher, global co-head of investments for the firm, recently told FTAdviser that her focus is on integrating the different teams so that company has a global reach, rather than thinking in terms of geographical or asset class silos.
She said that the ability to collaborate and build a team is now an active part of the remuneration conversation she has with fund managers and other members of the investment team.
david.thorpe@ft.com
