Analysts Forecast Robust Growth for Invesco’s Passive AUM

Invesco (NYSE: IVZ), a U.S.-based asset management company, is expected to experience significant growth in its passively managed assets compared to its actively managed assets in the forecast period. Average assets under management (AUM), which is the total market value of investments managed by the company, totaled $1.5 trillion in 2023, of which 66% was in actively managed assets and the remaining 34% was in passively managed assets. According to Visible Alpha consensus, by 2025, the share of actively managed assets is projected to decline to 59%, while that of passively managed assets rises to 41%, mirroring investors’ growing preference for low-cost passive funds.

In 2023, actively managed assets declined by -4% year over year to $992 billion, while passively managed assets increased by +9% to $508 billion. In 2024, analysts expect actively managed assets to grow by a modest +2%, while passively managed assets are projected to surge by +27%, reaching $643 billion. Going forward, it is expected that passively managed assets will continue to experience robust double-digit growth, while the growth rate of actively managed assets will be more moderate. With a shift towards passively managed assets, which produce no performance fees and lower management fees for Invesco, analysts also expect a slowdown in the company’s net revenue growth. Having declined by -7% year over year in 2023, Invesco’s net revenues are expected to grow by only +2% in 2024, reaching $4.4 billion.