Invesco Limited (IVZ) garners its total assets under management (or AUM) from two channels: retail and institutional. The company witnessed long-term inflows of $38 billion and long-term outflows of $34.9 billion from its retail channel in 3Q17. Thus, long-term net flows from the retail channel stood at $3.1 billion. In the same channel, the company witnessed an outflow of $0.2 billion from its PowerShares QQQ fund. Thus, total net flows from the retail channel stood at $2.9 billion in 3Q17.
AUM from Invesco’s retail channel has appreciated by $14.5 billion in 3Q17 on the back of favorable markets. The rise of $5.7 billion has been seen from its retail channel, thus reflecting favorable foreign currency translations.
Over the last 12 months (or LTM), Invesco has generated earnings before interest, tax, depreciation, and amortization (or EBITDA) margin of 26.7%. However, its competitors (XLF) like PNC Financial Services (PNC), Legg Mason (LM), and SEI Investments Company (SEIC) have generated EBITDA margins of 49.8%, 20.6%, and 31.3%, respectively, on a LTM basis.
Invesco’s institutional channel has witnessed long-term net flows of $3.2 billion in 3Q17, which reflects long-term inflows and outflows of $11.4 billion and $8.2 billion, respectively. An inflow of $5.4 billion has been seen in the company’s institutional money market funds.
On the back of favorable markets, Invesco’s AUM generated through the institutional channel has witnessed a marginal rise of $0.5 billion. However, AUM garnered from the same channel saw a rise of $1 billion because of foreign currency translations in 3Q17. Out of the company’s total AUM, the institutional channel had contributed $296 billion as of September 30, 2017.