Can Invesco's AUM Expansion Strategy Drive Steady Revenue Growth?

Invesco Ltd. IVZ continues to strengthen its asset-gathering capabilities through its diversified investment platform spanning ETFs, index strategies, fixed income, private markets, and global investment solutions. As of June 30, 2026, the company had $2.47 trillion in assets under management (AUM). Over the five years ended 2025, AUM increased at a 10% compound annual growth rate (CAGR), highlighting the company’s ability to expand its asset base over the longer term despite market volatility.

Though Invesco reported a 0.9% decline in preliminary month-end AUM to $2.45 trillion as of July 31, 2026, because of $59 billion of unfavorable market returns, it was partly offset by $8.6 billion of net long-term inflows, $22.8 billion of money-market inflows, and a $4.6 billion favorable foreign-exchange impact. This underscores the company’s ability to capture long-term inflows despite market-related pressure.

Invesco is expanding its AUM base by strengthening its ETF, index and private markets franchises while broadening its investment offerings. The company’s product pipeline remains active, with more than 50 new products launched year to date through the second quarter of 2026, including active ETFs, to address demand across investment strategies. Invesco is also expanding its private-market capabilities through partnerships with Barings and LGT Capital Partners, which are designed to accelerate growth in the U.S. private-wealth market. The LGT partnership focuses on developing multi-alternative private-market solutions for U.S. wealth and retirement investors, providing access to private equity, private credit, infrastructure, and secondaries.

In August 2026, Invesco further advanced its Solutions & Custom Strategies platform by integrating customized investment capabilities across public and private markets. The platform broadens Invesco’s ability to provide tailored solutions to clients and creates additional opportunities to gather assets across its public- and private-market offerings.

Invesco’s international footprint provides further opportunities for AUM expansion. As of June 30, 2026, Asia Pacific represented 15% of total AUM and EMEA accounted for 16%, with AUM in these regions increasing 23.4% and 28.7% year over year, respectively. The company’s China joint venture also reached a record $163.2 billion in AUM as of June 30, 2026. Invesco’s presence across global markets allows it to capture growing demand as investors diversify across geographies and asset classes. Management continues to view Asia Pacific and EMEA as long-term opportunities, supported by the breadth of first-half 2026 inflows across both regions.   

Invesco’s AUM Diversification Supports Expansion     

Image Source: Invesco Ltd.                                                        

Overall, Invesco’s diversified product portfolio, expanding ETF and private markets capabilities, and broad international presence should support continued AUM expansion. As such, the company’s total operating revenues have been rising since 2024 after remaining subdued in the years before that. These initiatives support further AUM and revenue growth as clients rebalance across active, passive and alternative strategies.

The Zacks Consensus Estimate for sales reinforces this, with the top line expected to rise 15.4% year over year to $5.38 billion in 2026 and 10.6% to $5.94 billion next year.

Sales Estimates

Image Source: Zacks Investment Research

AUM Expansion Strategy of Invesco’s Peers

Franklin Resources, Inc. BEN has witnessed steady AUM growth, with a 3.1% CAGR during fiscal 2021-2025. The growth trend continued in the first half of fiscal 2026, with AUM increasing year over year to $1.79 trillion as of June 30, 2026, supported by strong client demand and favorable market conditions.

Strategic expansion in alternatives, private markets, and digital assets, including the Apera Asset Management and 250 Digital acquisitions, and several partnerships, has diversified BEN’s asset base and will likely continue to support AUM growth.

Similarly, Lazard, Inc. LAZ has demonstrated steady AUM growth, with a 2.8% CAGR during 2016-2025. The growth trend continued in 2026, with AUM reaching $286.9 billion as of July 31, 2026, supported by market appreciation, net inflows, and foreign exchange gains.

Strategic expansion in wealth management and private markets, including the acquisition of Truvvo Partners and a controlling interest in Elaia Partners, has diversified LAZ’s asset base and is expected to support continued AUM expansion.

IVZ’s Price Performance & Zacks Rank

Over the past six months, shares of IVZ have rallied 35.5% compared with the industry’s 15.3% growth.

Six-Month Price Performance 

Image Source: Zacks Investment Research

The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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