ATLANTA - Invesco Ltd. (NYSE: IVZ), a global investment management firm, has announced a marginal increase in its assets under management (AUM) for the month ending July 31, 2024. The company's AUM rose by 0.9% to $1.732 trillion compared to the previous month.
The firm experienced net long-term inflows totaling $10.8 billion, with non-management fee earning net inflows at $3.2 billion. However, this was offset by money market net outflows of $12.1 billion. Positive market returns contributed a $9 billion increase to the AUM, and foreign exchange movements further boosted the figure by $4.9 billion.
Invesco's preliminary average total AUM for the quarter through July 31 stood at $1.7278 trillion, while preliminary average active AUM was reported at $1.0053 trillion.
A breakdown of the AUM across different strategies and products showed growth in ETFs & Index Strategies to $431.5 billion, up from $415.1 billion at the end of June. Fundamental Fixed Income, Fundamental Equities, and Private Markets also saw increases. The Global Liquidity category, however, experienced a decrease, dropping from $171.6 billion to $159.5 billion over the same period.
This financial update is based on a press release statement from Invesco Ltd. and reflects the company's performance and asset distribution as of the end of July 2024. It is important to note that these figures are preliminary and subject to adjustment.
In other recent news, Invesco Ltd. has reported robust second-quarter results, including record net long-term flows of $16.7 billion, marking the firm's strongest quarter in over two years. The company's assets under management grew by 12%, reaching over $1.7 trillion, while its operating margin expanded to 30.9%, and revenues rose by 3% from the first quarter. Invesco also announced plans to initiate a stock buyback program and maintain a total payout ratio between 50% and 60%.
RBC Capital Markets recently adjusted its outlook on Invesco, raising the firm's price target to $17.00 from the previous $16.00, while maintaining a Sector Perform rating. This revision follows Invesco's Q2 results and aligns with the expectation that share buybacks will recommence in the third quarter. RBC Capital analysts anticipate a modest improvement in Invesco's margins, potentially rising to 32% in fiscal years 2024 and 2025.
Invesco has been actively working on its financial strategy, including efforts to reduce leverage. The company's commitment to resuming share buybacks is seen as a sign of financial health. Additionally, Invesco is focusing on expanding its ETF and fixed-income offerings, particularly in international markets such as China and Japan. These are recent developments that investors may want to consider.
InvestingPro Insights
Invesco Ltd. (NYSE: IVZ) has shown resilience with a slight uptick in assets under management, reflecting investor confidence and strategic asset allocation. According to real-time data from InvestingPro, Invesco's market capitalization stands at a robust $7.2 billion. This financial strength is underscored by a noteworthy return on assets over the last week, with a price total return of 7.95%. This performance is particularly significant when considering the broader market context.
From an operational standpoint, Invesco's gross profit margin for the last twelve months as of Q2 2024 remains healthy at 25.42%, with an operating income margin of 14.98%. These figures suggest that the company is maintaining profitability in its core operations. Additionally, Invesco has demonstrated a commitment to shareholder returns, maintaining dividend payments for 18 consecutive years, with a current dividend yield of 5.07%—a compelling figure for income-focused investors.
InvestingPro Tips highlight that analysts are anticipating a decline in sales for the current year, yet they predict the company will be profitable this year. This juxtaposition of expectations suggests that Invesco may be focusing on optimizing its operations and cost structure to maintain profitability despite potential revenue headwinds. Moreover, with 7 analysts having revised their earnings downwards for the upcoming period, investors may want to explore more insights on Invesco's future performance. For those interested, InvestingPro offers additional tips on Invesco, which can be found at https://www.investing.com/pro/IVZ.
It's important to note that while Invesco has not been profitable over the last twelve months, the adjusted P/E ratio for the same period is 1.91, and the company's liquid assets exceed short-term obligations, indicating a solid financial position for meeting immediate liabilities. These data points, combined with the InvestingPro Tips, provide a comprehensive view of Invesco's financial health and future prospects.
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