Total assets under management
At the end of the first quarter, Invesco (IVZ) had total AUM (assets under management) of $934.2 billion, implying a fall from its December 2017 AUM primarily due to long-term outflows and market depreciation.
However, in the second quarter, the company’s AUM could witness a sequential rise mainly due to the recovered stock markets and its Guggenheim Investments ETF business acquisition. Thus, the company is expected to perform better in the second quarter than in the first quarter.
The following are the AUM numbers of Invesco’s competitors (XLF) as of the end of the first quarter:
- Rowe Price Group (TROW): $1.0 trillion
- State Street (STT): $2.7 trillion
- BlackRock (BLK): $6.3 trillion
In the first quarter, Invesco saw long-term outflows amounting to $56.3 billion. Of this, it saw $45.8 billion from the retail channel and $10.5 billion from the institutional channel.
Because of the unfavorable momentum in the equity markets, Invesco’s total AUM witnessed the fall of $12.2 billion in the first quarter. Of this, $11 billion came from the retail channel, while $1.2 billion came from the institutional channel. However, since the markets have recovered in the second quarter, the company’s AUM is expected to witness the positive effects.
Fund flows in institutional money market funds are affected by the Federal Reserve’s decisions regarding interest rates. A rise in interest rates could reduce inflows and fuel outflows in this category. Market participants expect the Fed to announce four rate hikes in 2018, which could negatively impact the institutional money market fund category.
In the next article, we’ll have a look at Invesco’s valuations.