Invesco Ltd. Announces March 31, 2024 Assets Under Management

Rhea-AI Summary

Invesco (IVZ) reported a 2.0% increase in assets under management (AUM) to $1,662.7 billion, with net long-term inflows of $2.8 billion. The firm saw positive market returns adding $29 billion to AUM, while FX movements and money market outflows slightly impacted AUM. Preliminary average total AUM for the quarter was $1,613.0 billion.

Insights

Financial Analyst

The reported increase in assets under management (AUM) by Invesco Ltd. is a positive indicator of the firm's growth trajectory. A rise in AUM typically suggests an enhanced capability to generate fee revenue, which is a critical component of an asset management firm's profitability. The net long-term inflows indicate strong investor confidence and could be a sign of effective fund management and marketing strategies.

However, it is essential to note the impact of market movements on the AUM. A significant portion of the AUM growth is attributed to favorable market returns, which are external factors beyond the company's control. This reliance on market performance introduces volatility and potential risks for future AUM stability. Additionally, the money market outflows require scrutiny as they may signal a shift in investor preference or a response to changing interest rates.

The foreign exchange movements present both challenges and opportunities. While FX reduced AUM this month, companies that actively manage their currency exposure can mitigate such risks. Investors should monitor Invesco's capability in this area as it can influence AUM and profitability.

Market Research Analyst

From a market perspective, Invesco's AUM distribution across various asset classes reflects broader industry trends. The substantial equity holdings align with a common investor preference for stocks in a bullish market. The fixed income and alternatives categories also show resilience, which may appeal to investors seeking diversification and risk management.

Comparing the active versus passive AUM, Invesco's strategy appears to be balanced, catering to both active investors seeking alpha and those preferring passive index-based investments. The growth in passive AUM is consistent with the industry shift towards lower-cost, index-tracking products. Observing the changes in AUM across different categories over the recent months provides insights into investor sentiment and market trends, which are important for tailoring future product offerings and marketing strategies.

Economist

The data provided by Invesco offers a microcosm of the economic environment in which the asset management industry operates. Increased AUM, particularly from net inflows, can be a proxy for economic confidence, as investors are more likely to allocate capital to managed funds when they anticipate positive market conditions. Conversely, the outflows from money markets might reflect a change in liquidity preferences, possibly due to interest rate expectations or economic forecasts.

The impact of foreign exchange movements on AUM also highlights the interconnectedness of global financial markets. It underscores the importance for asset managers to have robust strategies to hedge against currency risks, especially in a volatile FX environment. Long-term, the ability to manage these external factors effectively will be important for maintaining AUM growth and ensuring stable revenue streams.

ATLANTA, April 9, 2024 /PRNewswire/ -- Invesco Ltd. (NYSE: IVZ) today reported preliminary month-end assets under management (AUM) of $1,662.7 billion, an increase of 2.0% versus previous month-end. The firm delivered net long-term inflows of $2.8 billion in the month. Non-management fee earning net inflows were $1.8 billion and money market net outflows were $1.5 billion. AUM was positively impacted by favorable market returns which increased AUM by $29 billion. FX movements in the month reduced AUM by $1.1 billion which was partially offset by reinvested distributions of $0.9 billion. Preliminary average total AUM for the quarter through March 31 were $1,613.0 billion, and preliminary average active AUM for the quarter through March 31 were $981.0 billion.

Total Assets Under Management
(in billions)	Total	Equity	Fixed Income	Balanced	Money Market	Alternatives
March 31, 20241	$1,662.7	$901.9	$326.8	$62.0	$193.2	$178.8
February 29, 2024	$1,630.9	$871.9	$325.1	$61.4	$194.7	$177.8
January 31, 2024	$1,583.9	$830.8	$324.0	$59.5	$191.2	$178.4
December 31, 2023	$1,585.3	$823.7	$325.7	$62.7	$192.7	$180.5
Active2
(in billions)	Total	Equity	Fixed Income	Balanced	Money Market	Alternatives
March 31, 20241	$995.7	$317.4	$279.3	$61.1	$193.2	$144.7
February 29, 2024	$986.7	$309.2	$277.7	$60.5	$194.7	$144.6
January 31, 2024	$971.2	$298.9	$277.2	$58.6	$191.2	$145.3
December 31, 2023	$985.3	$302.9	$280.0	$61.8	$192.7	$147.9
Passive2
(in billions)	Total	Equity	Fixed Income	Balanced	Money Market	Alternatives
March 31, 20241	$667.0	$584.5	$47.5	$0.9	$0.0	$34.1
February 29, 2024	$644.2	$562.7	$47.4	$0.9	$0.0	$33.2
January 31, 2024	$612.7	$531.9	$46.8	$0.9	$0.0	$33.1
December 31, 2023	$600.0	$520.8	$45.7	$0.9	$0.0	$32.6

1    Preliminary – subject to adjustment. 
2    Passive AUM includes index-based ETF's, UIT's, non-fee earning leverage, foreign exchange overlays and other passive mandates.  Active AUM are total AUM less passive AUM.

About Invesco Ltd.
Invesco Ltd. (NYSE: IVZ) is a global independent investment management firm dedicated to delivering an investment experience that helps people get more out of life. With offices in more than 20 countries, our distinctive investment teams deliver a comprehensive range of active, passive and alternative investment capabilities. For more information, visit www.invesco.com/corporate.

Category: AUM

Investor Relations Contacts: Greg Ketron            404-724-4299
                                              Jennifer Church      404-439-3428
Media Relations Contact:      Andrea Raphael     212-323-4202

 

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SOURCE Invesco Ltd.

FAQ

What is the latest reported AUM for Invesco (IVZ)?

Invesco (IVZ) reported a total AUM of $1,662.7 billion.

How much were the net long-term inflows for Invesco (IVZ)?

Invesco (IVZ) reported net long-term inflows of $2.8 billion.

What factors impacted the AUM positively for Invesco (IVZ)?

Positive market returns added $29 billion to Invesco 's (IVZ) AUM.

What was the impact of FX movements on Invesco 's (IVZ) AUM?

FX movements reduced Invesco 's (IVZ) AUM by $1.1 billion.

What were the preliminary average total AUM for Invesco (IVZ) for the quarter?

The preliminary average total AUM for Invesco (IVZ) for the quarter was $1,613.0 billion.