Of Invesco’s (IVZ) total first-quarter operating revenue of $1.4 billion, the company’s investment management fees contributed $1.0 billion, representing the highest contributing component.
Other components of Invesco’s operating revenue included performance fees, service and distribution fees, and other revenue. A rise in investment management fees could largely influence the company’s total operating revenue.
Invesco’s average AUM (assets under management) primarily affects its investment management fees. Higher AUM would boost the company’s investment management fees. Invesco is expected to report net revenue of $964.1 million in the second quarter, primarily aided by Guggenheim Investments’ ETF business and the improved performance of the markets.
What’s expected in the second quarter?
In the second quarter, apart from the earnings season, the markets reacted positively to the jobs report, which indicated improvement in the US economy. Invesco’s competitors (XLF) are expected to report the following revenues in the quarter:
- T. Rowe Price Group (TROW): $1.3 billion
- BlackRock (BLK): $3.6 billion
- Franklin Resources (BEN): $1.6 billion
In the first quarter, of Invesco’s total operating revenue, it generated $818 million in North America, $67.9 million in the Asia-Pacific region, and $469.9 million in the EMEA (Europe, the Middle East, and Africa) region.
Moving forward, the equity markets could be impacted by a trade war between China and the United States, and asset managers’ AUMs could see the negative effects reflected in their performances.
Let’s have a look at Invesco’s total AUM in the next article.