Invesco's inflows come from ETFs and index funds as bond and equity funds see outflows

Invesco (NYSE: IVZ) took in $35.1 billion of net long-term flows in the third quarter, and $28.5 billion of that went to ETFs and index funds, the asset manager said in its results release. Its Fundamental Fixed Income and Fundamental Equities capabilities had net outflows.

What happened

Invesco said net long-term inflows were $35.1 billion in the quarter ended September 30, compared with $45.1 billion in the second quarter and $28.9 billion a year earlier. Retail clients added $41.7 billion, while institutional clients withdrew $6.6 billion, the company said.

By investment capability, net inflows were $28.5 billion for ETFs and Index, $6.7 billion for QQQ, $3.3 billion for Multi-Asset/Other and $1.5 billion for the China joint venture. Net outflows were $2.6 billion from Fundamental Fixed Income, $1.9 billion from Fundamental Equities and $0.4 billion from Private Markets. The four inflow lines add up to $40.0 billion and the three outflow lines to $4.9 billion (computed), which leaves the $35.1 billion total.

Geographically, EMEA, the Americas and Asia Pacific added $15.9 billion, $10.3 billion and $8.9 billion. Money market funds took in a further $52.9 billion, bringing total net flows, including money market funds, to $88.5 billion.

Annualized long-term organic growth, which divides net long-term flows by average long-term assets, was 6.3%, compared with 8.5% in the second quarter and 7.9% a year earlier. Andrew Schlossberg, Invesco's president and chief executive, said in the release: "This marks our 13th consecutive quarter of net long-term inflows."

Why it matters

Ending assets under management were $2,537.8 billion, up 2.7% from $2,470.3 billion at the end of June and 19.4% from $2,124.8 billion a year earlier. Net market losses reduced assets by $26.4 billion in the quarter, and currency movements added $4.5 billion, according to the release.

Operating revenues were $1,873.2 million, 14.2% more than a year earlier. Invesco attributed the $327.5 million rise in investment management fees from a year earlier primarily to management fees for QQQ, which converted to an open-end fund ETF in the fourth quarter of 2025, and to higher average assets.

Net income attributable to Invesco was $294.5 million, compared with $345.3 million in the second quarter and $301.3 million a year earlier. Diluted earnings per share were $0.65 under US generally accepted accounting principles and $0.72 on an adjusted basis. The adjusted operating margin was 40.7%, up from 37.5% in the second quarter and 34.2% a year earlier.

The balance sheet

On October 26, Invesco repurchased $1.5 billion of its Series A Preferred Stock held by MassMutual, funded through a $1.5 billion five-year floating-rate bank term loan, the company said. Total repurchases of that preferred stock now come to $3 billion over the past 18 months, leaving $1 billion outstanding. In the quarter, Invesco reduced net debt by $393 million.

What to watch

Invesco declared a third-quarter common dividend of $0.215 per share, payable on December 2 to shareholders of record at the close of business on November 13, according to the release.