Invesco reports slight dip in October AUM to $1.77 trillion

ATLANTA - Invesco Ltd . (NYSE: NYSE:IVZ), a global investment management firm, disclosed a marginal decline in its assets under management (AUM) for October, with figures standing at $1,772.0 billion, a 1.3% decrease from the end of September. This decrease was attributed to unfavorable market returns, which reduced AUM by $13 billion, and foreign exchange impacts, which further decreased AUM by $10.5 billion.

Despite the overall reduction in AUM, Invesco reported net long-term inflows of $2.0 billion for the month. However, these gains were offset by non-management fee earning net outflows of $0.2 billion and money market net outflows of $1.8 billion. The preliminary average total AUM for the quarter through October 31 was recorded at $1,792.0 billion, with preliminary average active AUM at $1,022.8 billion.

The breakdown of AUM across various investment strategies as of October 31, 2024, revealed that ETFs and Index Strategies remained relatively stable at $457.7 billion compared to September. Fundamental Fixed Income and Fundamental Equities experienced decreases to $284.2 billion and $270.1 billion, respectively. Private Markets, APAC Managed, Multi-Asset/Other, and Global Liquidity categories also saw declines in AUM, while the QQQ, an ETF that tracks the NASDAQ-100 Index, decreased slightly to $291.9 billion.

Invesco, headquartered in Atlanta, operates as an independent investment management firm with a presence in over 20 countries. The company offers a broad range of active, passive, and alternative investment capabilities.

The information provided is based on a press release statement from Invesco Ltd. and reflects the company's financial position as of the end of October 2024.

In other recent news, Invesco Ltd. has reported a strong performance for the third quarter of 2023. The company's total assets under management (AUM) reached a record $1.8 trillion, marking a 5% increase from the previous quarter, and net long-term inflows stood at $16.5 billion. This contributed to a 5.2% annualized organic growth rate, with the ETF platform experiencing significant inflows of $18 billion. Despite outflows in fundamental equity strategies, Invesco's adjusted diluted earnings per share (EPS) rose to $0.44.

The company also reported a strong balance sheet with zero net debt and resumed share buybacks with $25 million returned to shareholders. Invesco is in ongoing discussions with MassMutual regarding potential buyback of preferred shares. Looking ahead, the company is focused on driving profitable growth, enhancing shareholder returns, and maintaining disciplined expense management.

These developments are part of Invesco's strategic focus on partnerships, particularly with MassMutual, for opportunities in model portfolios and sub-advised products. The company also anticipates the completion of the Indian joint venture by Q1 2024.

InvestingPro Insights

To complement Invesco's recent AUM report, InvestingPro data offers additional financial insights. Despite the slight decline in AUM, Invesco's stock is trading near its 52-week high, with a price at 96.57% of its peak. This suggests investor confidence remains strong despite short-term fluctuations in managed assets.

InvestingPro Tips indicate that Invesco has maintained dividend payments for 18 consecutive years, with a current dividend yield of 4.56%. This consistent dividend policy may be attractive to income-focused investors, especially in light of the company's ability to cover interest payments with its cash flows.

While the company wasn't profitable over the last twelve months, analysts are optimistic about Invesco's future. InvestingPro Tips reveal that 11 analysts have revised their earnings upwards for the upcoming period, and the company is expected to return to profitability this year. This positive outlook aligns with the reported net long-term inflows of $2.0 billion in October, suggesting potential for future growth despite current AUM challenges.

For investors seeking a more comprehensive analysis, InvestingPro offers 10 additional tips for Invesco, providing a deeper understanding of the company's financial health and market position.

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