Invesco reports dip in March assets under management

ATLANTA - Invesco Ltd. (NYSE:IVZ), a global investment management firm, announced a 2.3% decrease in its assets under management (AUM) for the month ending March 31, 2025, compared to the previous month. The company's AUM stood at $1,844.8 billion, down from $1,888.6 billion at the end of February. This news comes as the stock has experienced significant pressure, down over 22% in the past week, according to InvestingPro data.

Despite the overall decline, Invesco experienced net long-term inflows totaling $6.5 billion. However, these inflows were offset by non-management fee earning net outflows of $1.7 billion and unfavorable market returns, which reduced the AUM by $60 billion. Money market net inflows added $5.8 billion. Positive foreign exchange movements and reinvested distributions contributed an increase of $5.2 billion to the AUM. The company maintains a strong dividend profile, with a current yield of 6.75% and a 19-year track record of consistent dividend payments.

The preliminary average total AUM for the quarter ending March 31 was reported at $1,880.8 billion, with active AUM for the same period averaging $1,043.1 billion.

A breakdown of the AUM across different investment strategies shows that ETFs and Index Strategies had an AUM of $490.0 billion, Fundamental Fixed Income held $294.1 billion, and Fundamental Equities accounted for $253.8 billion. Private Markets, APAC Managed, Multi-Asset/Other, and Global Liquidity categories also saw variations in their AUM.

The Global Liquidity AUM increased from $192.6 billion in February to $198.0 billion at the end of March. Notably, the QQQ, one of the most widely observed ETFs, decreased from $323.8 billion in February to $297.2 billion at the end of March.

This financial update is based on a press release statement from Invesco Ltd. The firm operates globally with a commitment to delivering investment experiences that aim to help investors achieve their financial objectives. InvestingPro analysis suggests the stock is currently undervalued, trading at an attractive P/E ratio of 11.4x. For deeper insights into Invesco's valuation and 12+ additional ProTips, explore the comprehensive Pro Research Report available on InvestingPro.

In other recent news, Invesco reported a strong performance for the fourth quarter of 2024, surpassing earnings expectations. The company posted an earnings per share (EPS) of $0.52, which exceeded analysts' forecasts of $0.48, and revenues were reported at $1.16 billion, aligning with predictions. Invesco's total assets under management (AUM) grew by 16% year-over-year, reaching $1.85 trillion. This growth was driven by strong performance in their ETF and private markets segments. Furthermore, the company maintained a positive outlook for 2025, expecting operating margin expansion and a continued focus on organic growth opportunities.

TD Cowen analysts reiterated a Buy rating for Invesco, maintaining a price target of $22.00. The firm expressed confidence in Invesco’s potential for sustained organic growth, highlighting improvements in operating leverage and capital management flexibility. Analysts noted that Invesco's effective fee rate might trend lower but anticipated stabilization and improvement if risk appetite shifts. They also discussed the potential reduction of MassMutual's $4 billion preferred ownership in Invesco, which could positively impact the stock multiple. These developments indicate a promising trajectory for Invesco amid a competitive market landscape.

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