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Money Management

Invesco’s AUM dips slightly in quarter on volatile markets

Invesco (IVZ)'s assets under management totaled $934.2 billion as of March 31, down 0.4% from the end of the previous quarter but 11.9% higher than March 31, 2017, the company announced Thursday in its quarterly earnings statement.

Quarterly AUM was hurt by $12.2 billion in net market losses, partially offset by $7.9 billion in AUM gains from foreign-exchange movements, according to the earnings release. Martin L. Flanagan, president and CEO, speaking on the company's earnings call, attributed the losses to volatile first-quarter markets.

Overall long-term net inflows of $300 million compare to net outflows of $1.5 billion in the fourth quarter and net inflows of $1.6 billion in the first quarter of 2017.

Long-term active strategies had net outflows of $1.5 billion in the latest quarter vs. net outflows of $2.3 billion in the fourth quarter and net outflows of $500 million in the year-ago quarter. Long-term passive strategies saw $1.8 billion in net inflows vs. net inflows of $800 million in the quarter ended Dec. 31 and $2.1 billion in net inflows a year earlier.

Invesco no longer includes reinvested distributions in its long-term net flows, and fourth quarter 2017 flows were adjusted to conform with the change, Loren M. Starr, Invesco chief financial officer, said in the earnings call. However, data from the first quarter 2017 includes reinvested distributions.

First-quarter net inflows of $400 million were reported in Invesco's institutional money market business, vs. $3.3 billion in net outflows in the fourth quarter and net outflows of $8.1 billion in the first quarter 2017.

Non-management fee-earnings AUM, including Invesco's PowerShares ETF business, saw net outflows of $400 million in the first quarter compared to net inflows of $1.6 billion in the previous quarter and net inflows of $1.2 billion in the year-earlier quarter.

Mr. Starr said Invesco saw $3.5 billion in net outflows in April because of a redemption by an unidentified sovereign wealth fund; that will be included in second-quarter flow numbers. Assets from Invesco's acquisition of Guggenheim Partners' ETF business, which closed earlier this month, will also be included in the second-quarter earnings statement.

Net revenue was $1.36 billion for the first quarter, down 1.4% from the last quarter of 2017 but up 13.7% from the first quarter of last year. Net income was $254 million, vs. $408 million for the previous three months and $212 million for the quarter ended March 31, 2017.