Invesco's third quarter profit rises on strong inflows, higher fees

Oct 28 (Reuters) - Invesco IVZ.N reported a rise in third-quarter profit on Tuesday, helped by strong inflows and higher fees, sending the asset manager's shares nearly 5% higher in premarket trading.

A cooling labor market and moderating inflation pushed the Federal Reserve to cut interest rates in September - its first this year - while expectations of further easing later in 2025 drove a market rally and inflows into investment products.

This surge has increased the value of assets under management and fees earned by asset managers such as Invesco.

The Atlanta, Georgia-based asset manager's performance fees, earned when client returns meet agreed-upon expectations, jumped over 132% in the quarter, as total net inflows climbed to $26.1 billion, compared with $12.7 billion a year ago.

Invesco ended the quarter with a record $2.12 trillion in assets under management (AUM) as of September 30, up 18.3% from a year ago.

Its investment management fees rose 7.7% to $1.18 billion during the reported quarter.

Invesco is an independent investment management firm that provides retail and institutional solutions to clients.

Excluding one-time costs, the company earned a profit of $275.4 million, or 61 cents per share, for the quarter ended September 30, compared with $199.8 million, or 44 cents per share, a year earlier.

Larger rival BlackRock BLK.N earlier this month reported a higher third-quarter profit and a record high AUM.