• Long-term Net Asset Inflows: $17.6 billion, representing a 5.3% annualized growth rate.
• Adjusted Operating Income: Increased by 18% year-over-year.
• Operating Margins: Expanded by over 330 basis points compared to the same quarter last year.
• Assets Under Management (AUM): Total AUM at the end of the quarter was $1.84 trillion.
• Net Long-term Inflows: $18 billion increase in AUM during the quarter.
• Adjusted Diluted Earnings Per Share (EPS): Increased by 33% to $0.44 from $0.33 in the prior year.
• Net Debt Position: Improved to $143 million from $362 million in the first quarter of 2024.
• Share Repurchases: $25 million in share buybacks during the quarter.
• Quarterly Common Stock Dividend: Increased from $0.205 to $0.21 per share.
• Net Revenue: $1.1 billion, a 5% increase from the first quarter of last year.
• Investment Management Fees: Increased by $59 million year-over-year.
• Effective Tax Rate: 24.4% for the first quarter.

• Warning! GuruFocus has detected 4 Warning Signs with IVZ.

Release Date: April 22, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Invesco Ltd (NYSE:IVZ) reported $17.6 billion in long-term net asset inflows, representing a 5.3% annualized growth rate.
• The company achieved an 18% increase in adjusted operating income and expanded operating margins by over 330 basis points compared to the same quarter last year.
• Invesco Ltd (NYSE:IVZ) announced a strategic partnership with MassMutual and Barings, focusing on private market product development and distribution in the US wealth management market.
• The company successfully repurchased $1 billion of preferred stock from MassMutual, which is expected to be earnings accretive in the second half of the year.
• Invesco Ltd (NYSE:IVZ) saw strong growth in its Global ETF and Index platform, with a 13% annualized organic growth rate in the first quarter.

Negative Points

• The company experienced net long-term outflows of $1.1 billion in its multi-asset related capabilities, driven by global risk parity strategies.
• Invesco Ltd (NYSE:IVZ) faced continued outflows in its Fundamental Equities, particularly in global equities and developing market funds in the US region.
• The partnership with Barings and MassMutual is expected to take time to scale, with initial phases focusing on private credit opportunities.
• The company reported a decline in net revenue yield, which decreased to 23.5 basis points in the first quarter.
• Invesco Ltd (NYSE:IVZ) noted that market volatility has made it challenging to provide specific guidance on operating expenses, indicating potential uncertainty in cost management.

Q & A Highlights

Q: Can you provide an update on the strategic partnership with Barings and MassMutual? Is it expected to have an immediate impact or will it take time to scale? A: Andrew Schlossberg, President and CEO, explained that the initial focus will be on private credit opportunities in the US wealth management channel. The first phase is expected to happen relatively quickly, with subsequent phases developing over time as opportunities arise.

Q: What led MassMutual to agree to the preferred stock repurchase, and are there plans to repurchase more? A: L. Allison Dukes, CFO, noted that MassMutual has been a strong partner, recognizing the challenges the preferred stock presented. The agreement allows for future discussions on repurchasing the remaining $3 billion of preferred stock, depending on cash flows and market conditions.

Q: Is there potential for an Invesco-Barings merger given the complementary capabilities? A: Andrew Schlossberg stated that both companies are focused on their individual strengths and the current partnership is aimed at leveraging complementary capabilities to enter the US wealth management space more effectively.

Q: How will the $650 million from MassMutual be used in the partnership with Barings? A: The capital will be used to seed initial products in the private credit space, leveraging Barings' strengths in specialty finance and direct lending, and Invesco's capabilities in distressed credit and real estate debt.

Q: How is Invesco positioned to handle the current market volatility and potential shifts in asset allocations? A: Andrew Schlossberg highlighted Invesco's diversified platform, which allows it to navigate market volatility and capture flows as investors reassess allocations. The firm is seeing resilience in institutional commitments and positive flows in regions like Asia and Europe.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.