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]

Financial Performance - Ending AUM reached a record $2 trillion[9], with long-term AUM growing by 16% year-over-year[22] - Net long-term inflows were $156 billion, representing an annualized organic growth of 47%[9, 22] - Net revenues increased by 17% year-over-year, while expenses increased by 13%[22] - Adjusted operating margin improved by 30 basis points compared to the second quarter of 2024[22] - Share buybacks of $25 million, representing 17 million shares, were executed[22] Asset Flows and AUM Composition - ETFs and Index strategies saw net inflows of $126 billion[9] - Fundamental Fixed Income experienced net inflows of $28 billion, including over $4 billion from The Peoples Pension fund in the UK[9] - Fundamental Equities had net outflows of $36 billion, with positive flows from Global/Regional equities offset by outflows in emerging markets ($23 billion) and global equities ($22 billion)[9] - Private Markets experienced net outflows of $23 billion, offset by positive flows in real estate and CLOs[9] Geographic and Channel Performance - Americas accounted for 70% of total firm AUM[11] - Asia Pacific accounted for 15% of total firm AUM[11] - EMEA accounted for 15% of total firm AUM[11] - Retail channel represented 68% of total firm AUM, while the Institutional channel represented 32%[11]

Core Insights - Invesco's preliminary assets under management (AUM) for May 2025 reached $1.94 trillion, reflecting a 5.6% increase from the previous month, driven by strong market performance and net inflows [1][7] Summary by Category AUM Performance - The month-end AUM of Invesco was $1.94 trillion, up 5.6% from April 2025 [1][7] - The preliminary average total AUM for the quarter ending May 31 was $1.86 trillion, with an average active AUM of $1.04 trillion [2] Inflows - Invesco reported net long-term inflows of $6.1 billion for May, alongside non-management fee-earning net inflows of $6.3 billion and money market net inflows of $19.4 billion [2][7] - Strong market returns contributed to a $70 billion increase in AUM, while foreign exchange effects added $0.9 billion [2] Asset Class Breakdown - AUM under ETFs & Index Strategies rose to $522.8 billion, a 6.2% increase from the previous month [3] - Fundamental Equities AUM increased to $275.1 billion, up 5.4% from April 2025 [3] - Global Liquidity AUM saw a significant increase of 10.2%, reaching $207.1 billion [3] - AUM for QQQs rose 11.5% to $333.6 billion, while Private Markets AUM increased by 1.3% to $129.1 billion [4] Challenges and Outlook - Despite macroeconomic challenges, Invesco's strong performance in May, characterized by robust market returns and increased net inflows, supports its financial stability [5] - The company's diverse product offerings and global presence are expected to bolster its financials in the near term [5]