Invesco (NYSE: IVZ) remains well-positioned for growth on the back of diversified offerings, efforts to enhance operating efficiency and solid assets under management balance. However, a high intangible assets composition on the balance sheet and subdued revenue performance are major headwinds.
Invesco's Catalysts
Invesco has been recording steady improvement in the AUM balance. The metric witnessed a compound annual growth rate (CAGR) of 12.3% over the five years ended 2023. The OppenheimerFunds acquisition in 2019 led to a significant rise in the company's AUM, turning it into one of the leading global asset managers. Invesco has been capitalizing on the rising demand for passive offerings, which constituted 42% of total AUM as of June 30, 2024, up from 34% in the corresponding period of 2023.
Image Source: Invesco Ltd.
IVZ has been executing initiatives to enhance operating efficiency. The company surpassed its goal for net cost synergies from the OppenheimerFunds acquisition and achieved $200 million in annualized net savings before the planned schedule. While adjusted operating expenses experienced ...
