Analyst Note| Greggory Warren, CFA |
While there was little in narrow-moat Invesco's third-quarter results that would alter our long-term view of the firm, we are raising our fair value estimate to $13 per share from $12 to account for better flow and market performance than we had been forecasting through the first nine months of the year. Invesco closed out September 2020 with $1.218 trillion in managed assets, up 6.4% sequentially and 2.9% on a year-over-year basis. Net long-term inflows of $7.8 billion during the third quarter were better than our forecast for $6.7 billion, with most of the difference due to stronger institutional flows. Even so, Invesco remains on pace to generate negative organic AUM growth in a mid- to high-single-digit range this year.