Asset Managers Compete for Capital Amid Market Volatility
What happened
Invesco and Fisher Investments are currently competing for investor capital. Invesco's conversion of QQQ to an open-end fund generated $130 million in new management fee revenue during the first half of the year. Asset managers earn fees based on assets under management (AUM), which grows when stock and bond prices rise, even without new client money.
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Why it matters
The competition for investor funds directly impacts the fee revenue streams of asset managers. Market conditions, such as those slowing dealmaking and investment exits for Blackstone, affect the overall growth of AUM and the cash available to pay dividends from these fee engines.
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Who's involved
- InvescoUS investment management company competing for investor funds
- Fisher InvestmentsFee-only investment adviser competing for investor funds
- BlackRockMultinational investment management corporation mentioned in context of market slowdown
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- InvescoSpeculative
Invesco might see its fee revenue and assets under management growth affected by market conditions and competition.
Possible ripples
Who this could reach next, traced step by step from the reporting. Possibilities worth considering, not forecasts.- Investor competition may shift trading volume on NasdaqIncreased competition may alter trading volume on the Nasdaq platform.Possible
- Nvidia's valuation may benefit from Invesco's growing fund inflowsNvidia's valuation may be supported by Invesco's growing fund inflowsPossible
- Competition for investor funds may challenge BlackRock's market shareIncreased competition for investor capital may challenge BlackRock's market sharePossible
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The entities involved
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Invesco
US investment management company
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Fisher Investments
Founded in 1979 by Ken Fisher, Fisher Investments is a fee-only investment adviser serving financially successful individuals & prominent institutions globally.