Core Viewpoint - Invesco Ltd. reported a second quarter diluted EPS of $(0.03) and an adjusted diluted EPS of $0.36, impacted by costs related to the repurchase of preferred stock [1][14]. Financial Performance - The company generated $16 billion in net long-term inflows during the quarter, achieving a record $2 trillion in assets under management (AUM), which represents a 16% increase year-over-year [2][8]. - Operating revenues for Q2 2025 were $1,515.5 million, a decrease of 0.9% from Q1 2025 but an increase of 2.2% compared to Q2 2024 [7][15]. - The operating income was $214.2 million, down 22.8% from Q1 2025 but up 3.6% from Q2 2024 [7][15]. - The adjusted operating income was $344.4 million, with an adjusted operating margin of 31.2% [7][22]. Net Flows - Net long-term inflows were $15.6 billion in Q2 2025, down from $17.6 billion in Q1 2025 [3][6]. - Retail and institutional net long-term inflows were $9.1 billion and $6.5 billion, respectively, with significant contributions from ETFs and Index, China JV & India, and Fundamental Fixed Income [4][8]. Assets Under Management - Ending AUM increased by 8.5% to $2,001.4 billion from $1,844.8 billion in Q1 2025, and by 16.6% from $1,715.8 billion in Q2 2024 [9][8]. - Average AUM rose by 0.9% during the quarter [9]. Capital Management - The company repurchased $1 billion of its preferred stock and continued to repurchase common shares, totaling 1.7 million shares for $25 million during the quarter [2][27]. - Cash and cash equivalents stood at $922.7 million as of June 30, 2025, up from $821.7 million at the end of Q1 2025 [25]. - Total debt increased to $1,883.9 million, which includes $1 billion in new bank term loans for the preferred stock repurchase [26]. Tax and Earnings - The effective tax rate for Q2 2025 was 28.1%, up from 22.5% in Q1 2025 [13][17]. - Adjusted net income attributable to Invesco Ltd. was $165.2 million, down 17.6% from Q1 2025 [9][41].

Invesco is an independent investment management firm dedicated to delivering an investment experience that helps people get more out of life.Be the first to know! Sign up for Invesco US Blog and get expert investment views as they post.Disclosure for all Invesco US articles: Before investing, carefully read the prospectus and/or summary prospectus and carefully consider the investment objectives, risks, charges and expenses. The information provided is for educational purposes only and does not constitute a ...

Group 1: ETF Innovations and New Products - The US saw the launch of 15 new ETFs last week, including options strategies, thematic products, and hedge fund replication strategies [1] - JPMorgan issued a tiered options strategy product linked to the MSCI EAFE index, aiming to reduce volatility while capturing most of the returns [1] - Unlimited launched two hedge fund replication products, targeting futures and equity long-short strategies, with fees set at 0.95% and 1% [1] Group 2: ETF Fund Flows - US stock ETFs experienced inflows exceeding $15 billion last week, with domestic stocks attracting more capital than international stocks, while bond ETFs saw outflows [3][5] - The top inflowing products were primarily broad-based stock ETFs, with significant inflows into BlackRock's Bitcoin and Ethereum ETFs [6] - The SPDR S&P 500 ETF Trust (SPY) led inflows with $4.7 billion, while the Vanguard Long-Term Corporate Bond ETF (VCLT) saw outflows of $3 billion [6] Group 3: ETF Performance - Technology ETFs rebounded significantly in Q2, with year-to-date returns surpassing the S&P 500, and ARKK showing over 30% gains [8] - The Vanguard Information Technology ETF (VGT) and Technology Select Sector SPDR Fund (XLK) reported year-to-date returns of 10.51% and 12.58%, respectively [8] Group 4: Mutual Fund Flows - As of May 2025, the total assets of US non-money market mutual funds reached $21.91 trillion, reflecting a $0.85 trillion increase from April [9] - In the week of July 2-9, US domestic equity funds experienced outflows of approximately $7.5 billion, while bond products saw inflows of $7.58 billion [10]

Core Viewpoint - Global sovereign wealth funds are significantly increasing their investment interest in the Chinese market, with a notable shift in strategy towards selective investment approaches [3][4][8]. Investment Trends - Sovereign wealth funds are prioritizing emerging markets, with 59% of respondents identifying China as a high or medium priority market, marking a significant change since 2024 [3][4]. - 59% of respondents expect to increase their allocation to Chinese assets over the next five years, with 88% of Asia-Pacific sovereign funds and 73% of North American funds planning similar increases [3][4]. Investment Drivers - Attractive local returns are the primary driver for investment in China, indicating that investors find the valuation and profit potential in China more appealing compared to other markets [4]. - Diversification is the second key reason, as investors view China as a source of differentiated growth [4]. Focus Areas - The most attractive investment sectors in China include digital technology and software, advanced manufacturing and automation, and clean energy and green technology [6][8]. - Sovereign wealth funds are adopting a more cautious industry focus strategy, targeting sectors where China is expected to achieve global leadership, such as semiconductors, cloud computing, artificial intelligence, electric vehicles, and renewable energy infrastructure [8]. Investment Strategy Shift - There is a notable shift towards active investment strategies, with over 70% of sovereign wealth funds employing active strategies in fixed income and equities [9]. - 52% of sovereign wealth funds plan to increase their active equity holdings in the next two years, while 47% intend to boost active fixed income holdings [9]. - This trend is particularly pronounced among larger institutions, with 75% of sovereign funds managing over $100 billion having shifted to more active equity investment strategies in the past two years [9].

Group 1: Momentum Investing Overview - Momentum investing involves following a stock's recent trend, with the strategy of "buying high, hoping to sell even higher" [1] - The Zacks Momentum Style Score helps investors identify which metrics are effective for assessing momentum [2] Group 2: Invesco (IVZ) Performance - Invesco currently holds a Momentum Style Score of A and a Zacks Rank of 1 (Strong Buy) [3][4] - Over the past week, Invesco shares increased by 4.18%, outperforming the Zacks Financial - Investment Management industry, which rose by 0.14% [6] - Invesco's monthly price change is 35.33%, significantly higher than the industry's 6.46% [6] - Over the last three months, Invesco shares have risen by 41.58%, and by 22.28% over the past year, compared to the S&P 500's increases of 19.65% and 14.95%, respectively [7] Group 3: Trading Volume and Earnings Outlook - Invesco's average 20-day trading volume is 4,718,232 shares, indicating a bullish sign if the stock is rising with above-average volume [8] - In the past two months, 6 earnings estimates for Invesco have been revised upwards, increasing the consensus estimate from $1.69 to $1.83 [10] - For the next fiscal year, 6 estimates have also moved upwards with no downward revisions [10] Group 4: Conclusion - Invesco is positioned as a 1 (Strong Buy) stock with a Momentum Score of A, making it a potential candidate for near-term investment [11][12]

Core Viewpoint - Invesco (IVZ) is expected to report second-quarter 2025 results on July 22, with anticipated revenue growth year-over-year but a likely decline in earnings [1][8]. Financial Performance - In the last reported quarter, Invesco's adjusted earnings exceeded the Zacks Consensus Estimate, supported by higher adjusted net revenues and an increase in assets under management (AUM) due to strong inflows, although higher operating expenses raised concerns [2][8]. - The preliminary total AUM as of June 30, 2025, was $2 trillion, reflecting an 8.7% sequential increase driven by strong market returns and net inflows [3][8]. - The Zacks Consensus Estimate for investment management fees is $1.11 billion, indicating a 1.3% rise from the previous quarter [3][4]. - Performance fees are estimated at $8.99 million, showing a significant increase from the previous quarter, while service and distribution fees are expected to rise 1.3% to $376 million [4]. Cost Structure - Despite cost-saving initiatives, rising compensation and marketing costs are expected to negatively impact overall expenses in the upcoming quarter [5]. - Management anticipates one-time implementation costs of Alpha to be between $10-15 million in Q2 2025 [5]. Strategic Developments - In April, Invesco announced a strategic partnership with MassMutual's Barings to focus on private credit solutions, supported by an initial investment of $650 million from MassMutual [6][7]. - Invesco plans to repurchase approximately $1 billion of its Series A preferred stock, funded by debt financing, which is expected to enhance earnings starting in the second half of 2025 [7]. Earnings Estimates - The consensus estimate for Invesco's earnings is 40 cents, reflecting a 7% decline year-over-year, while sales are expected to rise 1.9% to $1.11 billion [11]. - The Earnings ESP for Invesco is +1.65%, indicating a high likelihood of beating the Zacks Consensus Estimate for earnings [9]. Market Position - Invesco currently holds a Zacks Rank 1 (Strong Buy), suggesting a favorable outlook in the market [10].

Core Viewpoint - Analysts project that Invesco (IVZ) will report quarterly earnings of $0.40 per share, reflecting a 7% decline year over year, while revenues are expected to reach $1.11 billion, marking a 1.9% increase from the same quarter last year [1] Earnings Estimates - There has been a 12.7% upward revision in the consensus EPS estimate over the last 30 days, indicating a collective reassessment by covering analysts [2] - Changes in earnings estimates are crucial for predicting investor reactions to the stock, as empirical research shows a strong correlation between earnings estimate revisions and short-term stock price performance [3] Revenue Projections - Analysts expect 'Operating revenues- Other revenues' to be $53.25 million, indicating a year-over-year increase of 12.8% [5] - The consensus for 'Operating revenues- Service and distribution fees' is $375.77 million, suggesting a 3.9% year-over-year change [5] - 'Operating revenues- Performance fees' are projected to be $8.99 million, reflecting a 3.3% increase from the prior-year quarter [5] Assets Under Management - 'Average AUM - Total' is expected to reach $1855.71 billion, compared to $1669.30 billion a year ago [6] - 'Assets Under Management - Total' is projected to be $1892.28 billion, up from $1715.80 billion in the previous year [6] Stock Performance - Invesco shares have increased by 34.5% in the past month, outperforming the Zacks S&P 500 composite, which rose by 5.4% [6] - With a Zacks Rank 1 (Strong Buy), Invesco is anticipated to outperform the overall market in the near future [6]

Core Viewpoint - Invesco Ltd. (IVZ) is positioned favorably for an upcoming earnings report, with analysts raising earnings estimates, indicating potential for an earnings beat [1][2][5]. Earnings Estimates - Recent earnings estimate revisions for Invesco suggest positive trends, with the Most Accurate Estimate for the current quarter at 41 cents per share, compared to the Zacks Consensus Estimate of 40 cents per share [3]. - This results in a Zacks Earnings ESP of +1.65%, indicating a favorable outlook heading into earnings season [3]. Importance of Earnings ESP - A positive Zacks Earnings ESP has historically led to positive surprises and market outperformance, with a 10-year backtest showing nearly 70% of stocks with a positive Earnings ESP and a Zacks Rank of 3 or better achieving positive surprises [4]. - Stocks with this profile have averaged over 28% in annual returns [4]. Investment Consideration - Given that Invesco holds a Zacks Rank of 1 (Strong Buy) and a positive ESP, it is recommended for investors to consider this stock ahead of its earnings report [5].

Company Overview - Invesco (IVZ) shares increased by 15.3% in the last trading session, closing at $19.92, with a total gain of 17.4% over the past four weeks [1][2] - The stock reached a 52-week high of $20.05 during a rally driven by news of a proposed conversion of the Invesco QQQ Trust from a unit investment trust to an open-end ETF structure, which would allow the company to earn revenues and potential profits [2] Earnings Expectations - Invesco is expected to report quarterly earnings of $0.40 per share, reflecting a year-over-year decline of 7%, while revenues are projected to be $1.11 billion, an increase of 1.9% from the previous year [3] - The consensus EPS estimate for the quarter has been revised 12.7% higher over the last 30 days, indicating a positive trend that typically correlates with price appreciation [4] Industry Context - Invesco is part of the Zacks Financial - Investment Management industry, which includes other companies like Silvercrest (SAMG) [4] - Silvercrest's consensus EPS estimate has remained unchanged at $0.3, indicating no growth compared to the previous year, and it currently holds a Zacks Rank of 3 (Hold) [5]

Core Viewpoint - The Invesco Semiconductors ETF (PSI) is a passively managed fund aimed at providing broad exposure to the Technology - Semiconductors sector, appealing to both institutional and retail investors due to its low costs and transparency [1][2]. Group 1: Fund Overview - Launched on June 23, 2005, PSI has accumulated over $744.02 million in assets, positioning it as an average-sized ETF in the semiconductor segment [3]. - The fund seeks to match the performance of the Dynamic Semiconductor Intellidex Index, which evaluates semiconductor companies based on various investment criteria [4]. Group 2: Costs and Performance - PSI has annual operating expenses of 0.56% and a 12-month trailing dividend yield of 0.14%, making it competitive with peer products [5]. - Year-to-date, PSI has returned approximately 7.09% and is up about 2.26% over the last 12 months, with a trading range between $39.29 and $64.98 in the past 52 weeks [8]. Group 3: Sector Exposure and Holdings - The ETF has a significant allocation in the Information Technology sector, comprising about 97.70% of the portfolio [6]. - Kla Corp (KLAC) represents about 5.16% of total assets, with the top 10 holdings accounting for approximately 46.26% of total assets under management [7]. Group 4: Alternatives and Market Position - PSI holds a Zacks ETF Rank of 2 (Buy), indicating strong expected returns and favorable expense ratios, making it a solid choice for investors seeking exposure to the Technology ETFs segment [9]. - Other alternatives in the semiconductor ETF space include the IShares Semiconductor ETF (SOXX) with $13.95 billion in assets and the VanEck Semiconductor ETF (SMH) with $27.74 billion, both having an expense ratio of 0.35% [10].