Invesco Touts Growth Potential as Revenue Slides, Expenses Increase in Q2

Despite a tough start to the second quarter, with market volatility likely driven by Liberation Day tariff threats, Invesco reported strong fundamentals for the second quarter of 2025 as revenue slipped but assets under management (AUM) grew.

The global asset manager remains bullish and optimistic despite challenges, company leaders said during Invesco’s second-quarter earnings call Tuesday.

The cash flow that could be generated by reaching $2 trillion in AUM means that Invesco executives expect the company will greatly decrease its debt levels — which stood at about $1.8 billion as of June 30 — while diversifying its portfolio.

Adjusted operating expenses increased from $759.2 million the first quarter to $760.2 million, while revenue decreased from $1.529 billion to $1.515 billion over the same period. 

One reason for Invesco’s higher overhead has been the adoption of asset management software programs such as State Street’s Alpha and BlackRock‘s Aladdin.

“I think we’ve demonstrated really strong expense management and just a very well-controlled expense base for a number of years now, even while we’ve been incurring pretty significant costs for the implementation of Alpha and Aladdin,” said Allison Dukes, chief financial officer for Invesco. “We do continue to see and expect pretty significant implementation costs for the back half of this year, but that’s all within the context of a very well-managed expense base.”

Despite the revenue decline, Invesco will continue to provide a dividend of 21 cents per share and a yield of 4.16 percent for shareholders.

Invesco may also seek to hedge against economic decline in the U.S. with major investments in markets such as China, but the company seems to believe that the Trump administration will ultimately back down from its most economically damaging tariff threats as it has done in the past, according to Bloomberg.

Mark Hallum can be reached at mhallum@commercialobserver.com.