Invesco recently published its financial results for the three months ended 30 September 2021. The financial services provider saw a marginal jump in the total assets under management (AUM). In Q3 of 2021, the ending AUM reached $1,528 billion, which is 0.2% higher compared to the second quarter of 2021.
In terms of net long-term inflows, the number reached $13.3 billion, compared to $31 billion in Q2 of 2021. The recent number includes $11.5 billion worth of institutional net long-term inflows and approximately $1.8 billion worth of retail net long-term inflows.
Invesco mentioned that the net market losses and foreign Exchange (FX) rate movements decreased AUM by $14.6 billion and $4.0 billion, respectively. Additionally, the company announced the third-quarter EPS of $0.71.
"We continue to see growth from our key capability areas, including ETFs, Fixed Income, China, Solutions, Alternatives and Global Equities. With this growth, we have now had five consecutive quarters of net long-term inflows for the firm. The momentum we are seeing is producing positive operating Leverage and further strengthening our balance sheet and financial flexibility for the future. Our absolute focus on client outcomes, investment readiness, competitive strength and scale position us well for continued organic growth," Marty Flanagan, President and CEO of Invesco, said.
Operating Revenues and Expenses
During the latest quarter, operating revenues increased sharply compared to the same period last year. In Q3 of 2021, the operating income touched $463.8 million, compared to $268.5 million in Q3 of 2020. On the other hand, the overall operating expenses in the third quarter increased significantly compared to Q2 of 2021.
“Operating expenses increased $35.7 million in the third quarter as compared to the second quarter, driven by an increase of $35.1 million in transaction, integration and restructuring costs. Transaction, integration and restructuring costs included a benefit of $85.4 million in the second quarter and a third-quarter benefit of $45.7 million as discussed above. Third-party distribution, service and advisory costs were up $6.8 million during the quarter driven by higher average AUM,” Invesco added.
