Invesco

Methodology

Invesco's asset management business faces structural headwinds from passive investing and fee compression, making earnings growth challenging. The company's ETF business and alternative investments provide some growth offsets. This calculation is less reliable given secular shifts toward index funds—normalized assumptions about AUM trends require careful consideration of competitive dynamics versus passive alternatives.

Methodology

Invesco often shows attractive PEG ratios given low valuations, but this reflects market concerns about active management relevance and persistent AUM outflows. The company's modest growth or declining assets justifies lower valuations. A low PEG may be a value trap unless Invesco successfully shifts toward alternatives and factor-based strategies that can compete with pure index products.

Methodology

Invesco maintains a substantial dividend yielding significantly despite AUM challenges. The company's commitment to the dividend signals confidence but sustainability depends on stabilizing flows. PEGY is relevant for income investors seeking yield from asset management, though dividend coverage and the trajectory of organic AUM growth should be carefully monitored.