Analyst Note| Greggory Warren, CFA |
There was little in narrow-moat Invesco's first-quarter results that would alter our long-term view of the firm. We are leaving our $11.50 per share fair value estimate in place. Invesco closed out March 2020 with $1.053 trillion in managed assets, down 14.1% sequentially but up 10.3% on a year-over-year basis. Excluding the OppenheimerFunds acquisition, which added $224 billion in AUM during May 2019, managed assets were down 13.2% on a year-over-year basis. Outflows from long-term AUM, of $19 billion during the March quarter were better than our forecast for $27 billion, but when adding in other net flows (primarily nonmanagement fee-earning AUM) the firm lost $28 billion to outflows during the period (on par with our forecast for $29 billion in net outflows).