Invesco derives most of its assets from retail investors, a group that has increasingly focused on costs in the years since the 2008 financial crisis.
Invesco’s passive products had net outflows of $800 million in the second quarter. Invesco is the fourth-largest manager of exchange-traded funds. Still, it’s a distant fourth, holding a 5% share of the U.S. ETF market, compared with BlackRock Inc.’s approximately 38% slice, Bloomberg data show.
China Venture
Another of Invesco’s big bets is on the future of asset management in China. Its China joint venture, Invesco Great Wall Fund Management Company Limited, was an early wager on the nation easing restrictions on competition from foreign financial firms.
But President Donald Trump and Chinese counterpart Xi Jinping are still sparring over trade and exchanging barbs over who’s to blame for the pandemic. That raises questions about whether finance will be dragged into the fracas.
“The reality is the U.S. and China need each other,” Flanagan said. “China continues to be one of the most important parts of our business.”
This article was provided by Bloomberg News.