Invesco assets climb 7.5% in quarter, sees $3.5 billion in inflows

Invesco reported $954.8 billion in assets under management as of March 31, up 7.5% from three months earlier and up 2.2% from a year earlier, according to the company's first-quarter earnings results released Thursday.

The firm expects its total AUM will be more than $1.2 trillion in the second quarter of this year, once its acquisition of OppenheimerFunds from Massachusetts Mutual Life Insurance Co. closes, its earnings report said.

"We ... made significant progress toward the integration of OppenheimerFunds, which will accelerate our growth strategy, strengthen our scale and client relevance, expand our comprehensive suite of differentiated investment capabilities and provide compelling financial returns for shareholders," Invesco President and CEO Martin L. Flanagan said in the earnings release.

Invesco reported net inflows of $3.5 billion for the first quarter, vs. net outflows of $18.1 billion for the fourth quarter and net inflows of $300 million for the first quarter of 2018.

Long-term net outflows were $5.4 billion in the first quarter, compared to $20.1 billion in net outflows in the prior quarter and $300 million in net inflows in the first quarter of 2018.

Net outflows from active strategies totaled $9.3 billion in the first quarter, compared to net outflows of $16.4 billion in the previous quarter and net outflows of $1.5 billion the same quarter a year earlier. Passive strategies, meanwhile, experienced $3.9 billion in net inflows, vs. net outflows of $3.7 billion in the fourth quarter and net inflows of $1.8 billion the first quarter of 2018.

Invesco's institutional money market business had $6.8 billion in net inflows during the quarter ended March 31, compared to $3.2 billion in net inflows in the fourth quarter and $400 million in net inflows in the first quarter of 2018.

Non-management fee-earning AUM, including Invesco's ETF business, experienced net inflows of $2.1 billion in the first quarter, net outflows of $1.2 billion in the fourth quarter and $400 million in net outflows in the first quarter of 2018.

Net revenue was $887.1 million in the first quarter, down 3.5% over the prior quarter and down 7.4% from the year-earlier quarter.

Net income was $177.7 million in the first quarter, up 55.6% over the fourth quarter but down 30% from the first quarter of 2018.