Industry Updates

Passive funds soften Invesco's quarterly outflows once again

George Geddes

a group of metal bars

Invesco saw outflows of $5.8bn in Q3 despite the US giant's passive range posting strong positive flows.

The firm saw $11.1bn outflows across its active and passive product range. As part of this, the firm's passive funds managed to gain positive net flows for the period of $4.6bn, however, its active counterparts received outflows of $15.7bn.

In addition to the $4.6bn inflows, Invesco’s passive funds also gained $2.8bn from non-management fee-earning assets under management (AUM).

The company’s passive AUM climbed to $277.4bn at the end of September, up 2.7% from the previous quarter. Some $225.7bn came from the US while the UK contributed $600m and the rest of Europe contributed $46.9bn.

In total, passive’s assets also accounted for 23.4% of Invesco’s total AUM of $1.2trn.

The firm’s passive fixed income products bagged twice as many assets than equity with $4.2bn and $2.1bn, respectively. In tandem with the positive flows, fixed income lost $100m from market performances whereas equity gained $100m.

Speaking with ETF Stream in August, Paul Syms, head of EMEA ETF fixed income product management at Invesco, said the company is looking to push fixed income products with an ETF tilt.

Commenting on the results, Marty Flanagan, president and CEO at Invesco, said: "Gross sales were up 7.7% in the quarter, and long-term net outflows totalled $11.1 billion, versus net outflows of $3.9 billion in the prior quarter as clients reacted to market news by de-risking and reallocating their portfolios.

“During the quarter we saw outflows from our retail businesses in the Americas and the UK, partially offset by positive net flows in China, EMEA ex-UK and our ETF businesses."

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