Inflows and outflows
Invesco Limited (IVZ) reported total assets under management (or AUM) of $917.5 billion on September 30, 2017. The company’s active and passive AUM stood at $727 billion and $190.5 billion, respectively. Out of the long-term net flows of $6.3 billion in 3Q17, reinvested dividends and capital gains have contributed $1.1 billion.
Invesco saw an inflow of $5.4 billion in 3Q17 in its active AUM, which is related to institutional money market funds. However, the company saw an outflow of $0.2 billion during the same period from its passive AUM, which was related to the Invesco PowerShares QQQ fund.
Invesco posted a net income margin of 19.0% on a LTM (last-12-month) basis. Peers (XLF) SEI Investments Company (SEIC), PNC Financial Services (PNC), and Legg Mason (LM) reported net income margins of 24.9%, 38.5%, and 8.2%, respectively, on a LTM basis.
In 3Q17, Invesco’s AUM saw a rise of $15 billion on the back of favorable market momentum. The company’s fixed-income category has risen $0.9 billion, and its equity asset category has appreciated by $13.1 billion. However, the company’s balanced asset category saw an appreciation of $0.6 billion. The Source acquisition has increased Invesco’s AUM by $26 billion in 3Q17.
However, Invesco has seen a favorable effect related to the foreign exchange rates, which have led to the rise in its total AUM by $6.7 billion in 3Q17. However, in 3Q16, the company’s AUM fell $2.2 billion on the back of the unfavorable effect of foreign exchange rates.