Invesco reports second-quarter loss hurt by buyback costs

Invesco

22/07/2025 13:10

July 22 (Reuters) - Asset manager Invesco IVZ.N swung to a second-quarter loss on Tuesday, as expenses related to share repurchases wiped out gains in investment management fees.

Shares of the company fell marginally in premarket trading.

Invesco's performance fees, earned when client returns meet agreed-upon expectations, also fell over 70% in the quarter, as total net inflows slumped to $15.2 billion, compared with $28.2 billion a year ago.

WHY IT'S IMPORTANT

The quarter saw bouts of record volatility as a tumultuous U.S. trade policy and geopolitical tensions fueled recessionary fears and battered investor confidence.

This hurt Invesco's inflows and performance fees, as investors took a more cautious approach amid macroeconomic uncertainty.

BY THE NUMBERS

Invesco ended the quarter with a record $2 trillion in assets under management as of June 30, jumping 16.6% from a year ago, which boosted the corresponding investment management fees.

Investment management fees rose 3.3% to $1.1 billion during the reported quarter.

But a $159.3 million charge related to its preferred share repurchase program led to a loss of $12.5 million, or 3 cents per share, compared with a profit of $132.2 million, or 29 cents a year ago.

CONTEXT

Invesco, an independent investment management firm, provides retail and institutional solutions to clients across 120 countries.

Larger rival BlackRock BLK.N last week reported that its assets increased to a record high value in the second quarter.

 (Reporting by Ateev Bhandari in Bengaluru; Editing by Maju Samuel and Shinjini Ganguli)

 ((Ateev.Bhandari@thomsonreuters.com;))