Core Viewpoint - Invesco reported a decline in assets under management (AUM) for April 2025, influenced by net outflows and weak market returns, despite some positive contributions from foreign exchange [1][2][6]. AUM Performance - Invesco's month-end AUM for April 2025 was $1.84 trillion, a decrease of 0.3% from the previous month [1]. - The preliminary average total AUM for the quarter through April 30 was $1.82 trillion, with average active AUM at $1.03 trillion [3]. Net Inflows and Outflows - The company experienced net long-term inflows of $1.3 billion in April, but faced non-management fee-earning net outflows of $2 billion and money market net outflows of $12.1 billion [2]. - Weak market returns led to a $1 billion decline in AUM, while foreign exchange positively impacted AUM by $9.2 billion [2]. Breakdown by Asset Class - AUM under ETFs & Index Strategies was $492.4 billion, showing a slight increase from the previous month [4]. - Fundamental Fixed Income AUM grew by 2.4% to $298.9 billion, while China JV & India AUM rose by 1% to $112.1 billion [4]. - Multi-Asset/Other AUM increased by 2.9% to $61.1 billion, and QQQs AUM rose by 0.6% to $299.1 billion [4]. - Conversely, Private Markets AUM declined by 3% to $127.4 billion, Fundamental Equities AUM decreased by 0.6% to $261.1 billion, and Global Liquidity AUM fell by 6.1% to $187.9 billion [5]. Market Context - The company faces macroeconomic headwinds leading to volatility in asset flows, which may impact its top line in the near term [6]. - In the past three months, Invesco's shares have decreased by 15.4%, compared to a 7.4% decline in the industry [6]. Peer Comparison - Franklin Resources reported a preliminary AUM of $1.53 trillion, showing a slight decrease, attributed to long-term net outflows of $10 billion [9][10]. - T. Rowe Price announced a preliminary AUM of $1.56 trillion, reflecting a marginal decrease with net outflows of $3.5 billion [10].

Core Viewpoint - Invesco is an independent investment management firm focused on enhancing the investment experience for individuals, aiming to help them achieve more in life [1] Group 1 - Invesco emphasizes the importance of understanding investment objectives, risks, charges, and expenses before making investment decisions [1] - The firm provides educational information but does not constitute a recommendation for any specific investment strategy [1] - Invesco advises investors to consult their own legal or tax professionals due to the complexity and variability of federal and state tax laws [1] Group 2 - The opinions expressed by Invesco's authors are based on current market conditions and are subject to change without notice [1] - Invesco's investment advisory services are provided by affiliated investment advisers, and they do not sell securities [1] - Invesco Unit Investment Trusts are distributed by Invesco Capital Markets, Inc., and other broker-dealers [1]

Core Viewpoint - Invesco Ltd. (NYSE: IVZ) is rated as a Buy for growth and income-focused investors seeking long-term investments, despite experiencing a decline after reaching a high in January [1]. Group 1 - The stock of Invesco Ltd. reached a peak in January but faced a downturn similar to many of its peers [1]. - The recommendation is aimed at investors looking for long-term buy and hold opportunities [1]. Group 2 - The article is authored by David A. Johnson, who has over 30 years of investment experience and holds advanced degrees in finance and business administration [1].

Core Viewpoint - Invesco Mortgage Capital Inc. reported its financial results for Q1 2025, highlighting a challenging market environment with a modest economic return of 2.6% despite negative market sentiment and increased interest rate volatility [2][4][11]. Financial Performance - The company achieved a net income attributable to common stockholders of $16.3 million, translating to earnings per common share of $0.26, compared to a net loss of $5.5 million in Q4 2024 [11][30]. - Earnings available for distribution per common share increased to $0.64 from $0.53 in the previous quarter [11][44]. - The economic return for the quarter was 2.6%, consisting of a $0.34 dividend and a $0.11 decline in book value per common share [2][7]. Portfolio Composition - As of March 31, 2025, the investment portfolio totaled $5.9 billion, primarily composed of $5.0 billion in Agency RMBS and $0.9 billion in Agency CMBS [3][31]. - The debt-to-equity ratio increased to 7.1x from 6.7x at the end of 2024 [3][12]. Market Conditions - The performance of Agency RMBS was consistent with Treasuries, but there was a notable underperformance in April due to heightened interest rate volatility and deteriorating risk sentiment [4][5]. - The company remains cautious about the near-term market outlook due to elevated policy uncertainty [4]. Dividends and Capital Activities - A common stock dividend of $0.34 per share was declared, payable on April 25, 2025 [22]. - The company sold 4,212,057 shares of common stock for net proceeds of $36 million during the quarter [23]. Key Financial Metrics - Total interest income for Q1 2025 was $73.8 million, while total interest expense was $55.0 million, resulting in a net interest income of $18.8 million [10][32]. - The average net interest rate margin improved to 0.99% from 0.47% in the previous quarter [10][12].

Core Viewpoint - Invesco Ltd. has launched three new active ETFs that leverage the expertise of its in-house active managers, aiming to meet investor demand for high-quality active strategies through the ETF vehicle [2][3]. Group 1: New ETF Strategies - The three newly launched ETFs are: Invesco QQQ Hedged Advantage ETF (QQHG), Invesco Comstock Contrarian Equity ETF (CSTK), and Invesco Managed Futures Strategy ETF (IMF) [2][3]. - QQHG aims to track the performance of the Nasdaq 100 Index while implementing an option overlay strategy to manage downside risk [9]. - CSTK focuses on total return through capital growth and income by identifying discrepancies between stock prices and company values [9]. - IMF employs a futures strategy that takes both long and short positions across various global markets, seeking long-term capital appreciation with low correlation to traditional markets [9]. Group 2: Market Position and Strategy Evolution - The launch of these ETFs reflects Invesco's commitment to evolving its ETF lineup to align with investor preferences and demands [3][4]. - The new active ETFs represent a continuation of Invesco's focus on rules-based ETF development, combining human judgment with established rules-based strategies [4]. - Invesco aims to educate investors on how these active ETFs can fit into their portfolios as the market for such products evolves [4]. Group 3: Company Overview - Invesco Ltd. is a global independent investment management firm managing approximately US$1.8 trillion in assets as of March 31, 2024 [5]. - The firm operates in over 20 countries and offers a comprehensive range of active, passive, and alternative investment capabilities [5].

Core Viewpoint - The current bear market in the Nasdaq-100, driven by economic and political uncertainties, may present a buying opportunity for long-term investors, particularly in the Invesco QQQ Trust, which tracks the performance of the Nasdaq-100 [2][10][13]. Group 1: Nasdaq-100 Overview - The Nasdaq-100 includes 100 of the largest non-financial companies listed on the Nasdaq stock exchange, serving as a proxy for technology and technology-adjacent industries [1]. - The index has experienced a decline of up to 23% from its record high in April, entering a technical bear market [2]. Group 2: The Magnificent Seven - The Magnificent Seven, a group of seven major U.S. stocks, represent 41.3% of the total value of the Invesco QQQ Trust, significantly influencing its performance [5]. - These stocks have averaged a decline of 15% this year, with Tesla leading the drop at 29% due to soft demand for electric vehicles [6]. - Alphabet reported a 46% year-over-year increase in net income, indicating strong earnings potential for the Magnificent Seven [6]. Group 3: AI and Future Growth - Companies like Alphabet, Amazon, and Microsoft are expected to benefit from the growing demand for AI services through their cloud platforms [7]. - Nvidia's data center revenue surged by 142% to $115.2 billion in fiscal year 2025, highlighting its strong position in the AI chip market [8]. Group 4: Invesco QQQ Trust Performance - The Invesco QQQ Trust has historically weathered multiple bear markets since its inception in 1999, delivering a compound annual return of 10% from 1999 to 2024 [10]. - The current bear market is not expected to derail this long-term trend, as historical patterns suggest potential recovery following economic shocks [11]. Group 5: Tariff Impact - Recent tariff adjustments by President Trump may alleviate some economic pressures, with negotiations for new trade deals underway [11]. - The tariffs primarily affect physical imports, leaving digital goods and services, crucial for companies like Alphabet, Microsoft, and Amazon, largely unaffected [12]. - Semiconductors are exempt from aggressive tariffs, benefiting companies like Nvidia, Broadcom, AMD, and Micron Technology [12].

Group 1 - Invesco Dynamic Leisure and Entertainment (NYSEARCA: PEJ) is an ETF that allows investors to participate in the success of stocks within the leisure and entertainment sectors [1] - The ETF appeals to investors interested in businesses that provide products and services related to leisure and entertainment [1] - The focus is on identifying companies with durable competitive advantages and strong balance sheets, aiming to purchase shares when they are undervalued by the market [1]

Financial Performance - Operating revenues for Q1 2025 were $1,529.2 million, an increase from $1,475.3 million in Q1 2024, representing a growth of 3.7%[94] - Net income attributable to Invesco Ltd. for Q1 2025 was $171.1 million, compared to $141.5 million in Q1 2024, reflecting a year-over-year increase of 20.9%[94] - Adjusted operating income for Q1 2025 was $349.5 million, compared to $296.5 million in Q1 2024, marking an increase of 17.9%[94] - The adjusted diluted EPS for Q1 2025 was $0.44, up from $0.33 in Q1 2024, representing a growth of 33.3%[94] - Net revenues increased to $1,108.7 million for the three months ended March 31, 2025, compared to $1,053.2 million for the same period in 2024[157] - Net income attributable to Invesco increased to $171.1 million from $141.5 million, with adjusted net income rising to $200.5 million from $148.4 million[159] Assets Under Management (AUM) - Assets Under Management (AUM) reached $1,844.8 billion at the end of Q1 2025, up from $1,662.7 billion in Q1 2024, indicating a growth of 10.9%[94] - Total AUM as of March 31, 2025, was $1,844.8 billion, a slight decrease from $1,846.0 billion at the beginning of the year[103] - Active AUM as of March 31, 2025, was $1,041.3 billion, up from $995.7 billion at the end of March 2024, reflecting a 4.6% increase[103] - Passive AUM as of March 31, 2025, was $803.5 billion, compared to $667.0 billion at the end of March 2024, indicating a 20.4% increase[103] - The average long-term AUM for the three months ended March 31, 2025, was $1,326.8 billion, compared to $1,164.1 billion in the same period of 2024, representing a 14% increase[103] Cash Flow and Dividends - The company approved an increase in its quarterly dividend from $0.205 to $0.21 per share, effective for the second quarter of 2025[85] - The company declared a cash dividend of $0.21 per common share for Q1 2025, payable on June 3, 2025[192] - Financing cash outflows for the three months ended March 31, 2025, included $92.5 million in common dividend payments, $59.2 million in preferred dividend payments, and $25.2 million in common share repurchases[190] Share Repurchase and Capital Management - During Q1 2025, the company repurchased 1.5 million common shares for $25 million in the open market[85] - The company entered into an agreement to repurchase $1 billion of Series A Preferred Stock, enhancing its leverage profile and balance sheet flexibility[86] - The company repurchased 1.5 million common shares for $25 million during the three months ended March 31, 2025[178] Market Performance and Flows - Long-term inflows for the three months ended March 31, 2025, were $122.0 billion, compared to $80.3 billion in the same period of 2024, representing a 52.1% increase[109] - Total net flows for the three months ended March 31, 2025, were $32.6 billion, up from $16.5 billion in the same period of 2024[109] - The company reported net flows in money market funds of $10.0 billion for the three months ended March 31, 2025, compared to $0.7 billion in the same period of 2024[109] Expenses and Cost Management - Total operating expenses decreased by $10.3 million, or 0.8%, to $1,251.9 million for the three months ended March 31, 2025, compared to $1,262.2 million in 2024[138] - Employee compensation decreased to $464.6 million from $472.7 million, primarily due to a reduction in common share-based awards[141] - Service and distribution fees decreased by $6.1 million, or 1.6%, to $370.9 million for the three months ended March 31, 2025, compared to $377.0 million in 2024[131] Tax and Interest - The effective tax rate decreased to 22.5% from 24.3%, primarily due to favorable tax resolutions[154] - Interest expense decreased to $13.1 million from $15.9 million, reflecting a 17.6% reduction[149] Strategic Initiatives - A new strategic product and distribution partnership was announced with Barings, involving an initial investment of $650 million to expand private markets business[87] - The company's joint venture, Invesco Great Wall, reported net revenues of $78.2 million and average AUM of $96.5 billion for the three months ended March 31, 2025, compared to $74.7 million and $83.7 billion in 2024[135] Market Conditions - Market losses for the three months ended March 31, 2025, amounted to $(42.2) billion, contrasting with market gains of $68.0 billion in the same period of 2024[109] - Inflationary pressures may increase the company's cost structure, potentially impacting net income if not recoverable through pricing increases[205]

Company Overview - Invesco Mortgage Capital Inc. is a real estate investment trust focused on investing in, financing, and managing mortgage-backed securities and other mortgage-related assets [3] - The company is externally managed and advised by Invesco Advisers, Inc., a wholly-owned subsidiary of Invesco Ltd., a leading independent global investment management firm [3] Upcoming Financial Results - Invesco Mortgage Capital Inc. will announce its first quarter 2025 results on May 7, 2025, after market close [1] - A conference call and audio webcast to review these results will take place on May 8, 2025, at 9:00 a.m. ET, featuring key executives including the CEO, CIO, President, COO, and CFO [1] Participation Details - A presentation will be available on the company's website prior to the call [2] - Participants can join the call using the North America Toll-Free number 888-982-7409 or the International Toll number 1-212-287-1625, with the passcode "Invesco" [2] - An audio replay of the call will be available until May 22, 2025 [2]

Financial Data and Key Metrics Changes - Invesco Ltd. reported total assets under management (AUM) of $1.84 trillion, nearly flat compared to the end of Q4 2024, but $182 billion or 11% higher than Q1 2024 [47] - Adjusted diluted earnings per share increased by 33% to $0.44 for Q1 compared to $0.33 in the prior year [50] - Adjusted operating income rose by 18%, with operating margins expanding over 330 basis points to 31.5% [61] Business Line Data and Key Metrics Changes - The company generated $17.6 billion in long-term net asset inflows, representing a 5.3% annualized growth rate [9] - The global ETF and index platform recorded 13% annualized organic growth in Q1 [16] - Fundamental fixed income contributed $8 billion in net inflows, while the China JV and India added $2.2 billion [49][24] Market Data and Key Metrics Changes - The Asia Pacific and EMEA regions each accounted for $276 billion in AUM, generating $15 billion in net long-term inflows in Q1 [13] - Money market funds topped $7 trillion in the industry, indicating a shift in client sentiment towards caution [14] - The company observed strong client activity despite market volatility, with significant growth across channels and asset classes [15] Company Strategy and Development Direction - Invesco Ltd. aims to expand its footprint in private markets, particularly in the US wealth management sector, through partnerships with MassMutual and Barings [31] - The company is focused on delivering differentiated private credit-oriented income solutions and product structures [32] - The strategic partnership with MassMutual includes a $1 billion repurchase of preferred stock, enhancing balance sheet flexibility [35] Management's Comments on Operating Environment and Future Outlook - Management noted that investors are adopting a more defensive stance in capital deployment amid market volatility [108] - The diversified nature of Invesco's business is expected to help navigate the current operating environment and capture flows as clarity returns [110] - Positive organic flow growth was observed in China, despite heightened trade tensions impacting the domestic economy [25] Other Important Information - The company plans to continue share repurchases and has increased its quarterly common stock dividend from $0.205 to $0.21 per share [65] - The partnership with MassMutual is expected to facilitate discussions regarding future repurchases of the remaining $3 billion of preferred stock [42] Q&A Session Summary Question: Strategic update on product and distribution opportunities with Barings and MassMutual - Management indicated that the initial phases will focus on private credit opportunities, with a few capabilities set to launch soon [70] Question: Comments on the preferred stock repurchase agreement - Management highlighted the strength of the partnership with MassMutual and the potential for future repurchases based on cash flow and market conditions [76] Question: Economic participation in the partnership with Barings - The partnership will involve shared management fee revenues, with Invesco as the distributor and product operator [120] Question: Differences in local regions due to global tariff negotiations - Management noted that the local profile in Asia Pacific and EMEA has been beneficial, with better asset flow resilience compared to the US [127] Question: Positioning in the retirement market for alternatives - Invesco is focused on creating products for the retirement market, leveraging existing relationships with plan sponsors and consultants [135]