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IVZ Stock Dips as October AUM Falls on Unfavorable Markets, Outflows

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Invesco (IVZ - Free Report) shares lost 1% in after-hours trading on Monday following the announcement of preliminary assets under management (AUM) for October 2024. The company’s month-end AUM of $1.77 trillion represented a 1.3% decline from the previous month.

IVZ reported net long-term inflows of $2 billion for October. Non-management fee-earning net outflows were $0.2 billion, and money market net outflows totaled $1.8 billion.

Further, Invesco’s AUM was unfavorably impacted by weak market returns, which lowered its AUM by $13 billion. Also, FX hurt the AUM balance by $10.5 billion.

Invesco’s preliminary average total AUM in the quarter through Oct. 31 was $1.79 trillion, and the preliminary average active AUM came in at $1.02 trillion.

IVZ’s Performance Breakdown by Asset Class

At the end of October, IVZ’s AUM under ETFs & Index Strategies was $457.7 billion, rising marginally from the previous month. The Fundamental Fixed Income AUM of $284.2 billion fell 2.2% sequentially.

Invesco’s Fundamental Equities AUM for August was $270.1 billion, down 3% from September 2024-end. Private Markets AUM declined marginally to $129.2 billion, while the APAC Managed AUM fell almost 1% to $116.4 billion.

AUM under Multi-Asset/Other was $60.2 billion, falling 4.6% from the previous month’s end. Global Liquidity AUM was $162.3 billion, down 1.1% sequentially. QQQs AUM was $291.9 billion, which decreased almost 1%.

Our Take on Invesco

Several macroeconomic headwinds have been leading to a volatile trend in asset flows, which, along with a tough operating environment, might hurt Invesco’s top line in the near term. However, synergies from buyouts, diverse product offerings and alternative investment strategies, global presence and a solid AUM balance will likely keep aiding the company’s financials.

In the past three months, shares of IVZ have rallied 12.6%, underperforming the industry’s growth of 26.8%.
 

Zacks Investment Research
Image Source: Zacks Investment Research

At present, Invesco carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Invesco’s Peers in October

Cohen & Steers, Inc. (CNS - Free Report) reported a preliminary AUM of $89.7 billion as of Oct. 31, 2024. This reflected a decline of 2.3% from the prior month's level.

The fall in CNS’ AUM balance was due to the market depreciation of $2.3 billion and distributions of $152 million, partially offset by net inflows of $454 million.

Franklin Resources, Inc. (BEN - Free Report) reported a preliminary month-end AUM of $1.63 trillion as of Oct. 31, 2024. This marked a 2.9% decrease from the prior month.

The decline in BEN’s AUM balance reflected unfavorable market returns and long-term net outflows of $18.5 billion. The outflows included the previously disclosed $17.8 billion of long-term net outflows at Western Asset Management.


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