IVZ's July AUM Rises on Solid Market & Inflows: Will the Upside Last?

Core Insights - Invesco's preliminary assets under management (AUM) for July 2025 reached $2.02 trillion, reflecting a 1.2% increase from the previous month, driven by market gains and long-term net inflows, despite some losses from unfavorable foreign exchange [1][10] Group 1: AUM Performance - The rise in AUM was attributed to a $22 billion increase from market performance and $5.8 billion in long-term net inflows, offset by an $8.5 billion decline due to unfavorable FX [1] - AUM under ETFs & Index Strategies was $559 billion, up 2.2% from the previous month, while Global Liquidity AUM increased by 2.1% to $200.5 billion [2] - The Fundamental Fixed Income AUM decreased by 1% to $298.5 billion, and Fundamental Equities AUM saw a slight decline to $287 billion [3] Group 2: Growth Trends - Over the past five years, Invesco's AUM has experienced a compound annual growth rate (CAGR) of 8.5%, with continued growth in the first half of fiscal 2025 [4] - The company has been focusing on diversifying into asset classes with growing client demand, which is expected to further enhance AUM growth [5] Group 3: Competitive Landscape - Competitors such as Franklin Resources and T. Rowe Price are also experiencing AUM growth, with Franklin's AUM at $1.62 trillion and T. Rowe Price benefiting from a diversified AUM across various asset classes [6][8] Group 4: Valuation and Earnings Estimates - Invesco's shares have increased by 17% in 2025, outperforming the industry, and the company trades at a forward price-to-earnings (P/E) ratio of 9.89, below the industry average [9][11] - The Zacks Consensus Estimate indicates a 4.7% year-over-year rise in Invesco's 2025 earnings, with a projected growth of 25.5% for 2026 [12]