Invesco's AUM up 6.5% for quarter, down 12.5% for year

Invesco's assets under management totaled $1.41 trillion as of Dec. 31 as of Dec. 31, up 6.5% from the prior quarter, while a year-over-year comparison showed a decline in total AUM of 12.5%, according to the firm's earnings report released Tuesday.

Invesco had total net inflows of $24.8 billion in the fourth quarter buoyed by $30.1 billion of money market investments, while long-term assets had net outflows of $3.2 billion.

By asset class, Invesco's ETF suite had long-term net inflows of $4.3 billion, while fixed income experienced net inflows of $800 million and equity had $700 million of net inflows, the report said.

Net inflows were offset by net long-term outflows of $1.1 billion in balanced products and $3.6 billion in alternative strategies.

Net inflows from institutional investors were $900 million in the fourth quarter, while the firm's retail channel had net outflows of $4.1 billion in the fourth quarter.

Invesco's AUM was buoyed in the fourth quarter by $34.8 billion of net market gains and $14.6 billion in favorable foreign-exchange rate movements, according to the earnings report.

The firm's operating revenue totaled $1.4 billion in the fourth quarter, up 6.5% over the prior quarter and down 12.5% compared with the fourth quarter of 2021.

Net income attributable to Invesco totaled $188 million, up 5.9% compared with the previous quarter of 2022 and down 56% from the year-earlier quarter.

During a call with analysts, Martin Flanagan, Invesco's president and CEO, said, "2022 was the worst market we've seen in decades," but added that he's optimistic for organic growth in 2023.

"We're closer to the end of uncertainty" that characterized 2022, Mr. Flanagan said, adding that he's expecting "really positive changes" this year.