Latest news with #AllisonDukes
Yahoo
23-07-2025
- Business
- Yahoo
Invesco's QQQ gambit seen unlocking $150M in revenue
(Bloomberg) — Invesco Ltd.'s move to convert its famed tech fund QQQ (QQQ) into an open-ended structure could translate into a $150 million yearly windfall for the asset manager. Chief Financial Officer Allison Dukes said on the company's earnings call Tuesday that transforming the Invesco QQQ Trust Series 1 from a unit investment trust into an ETF could benefit net revenue and adjusted operating income by about four basis points — or roughly $150 million, Bloomberg Intelligence estimates. In its current format, Invesco sees virtually none of the fee revenue that QQQ generates, but ETF conversion would allow the firm to reorder the revenue breakdown. While QQQ owners still need to vote to approve the change, the proposal has investors and analysts lining up behind the stock. TD Cowen upgraded the asset manager following last Thursday's proxy statement, while Evercore analyst Glenn Schorr wrote Tuesday that 'the move to collect fees on the Q's' should give shareholders a reason to feel optimistic about revenue trends going forward. And given that the revenue boost would come with little incremental cost, it's little wonder to see sentiment on the stock surging, according to Bloomberg Intelligence's Neil Sipes. 'If approved, the shift would lift fee-generating organic growth and boost earnings by about 10%, enhancing Invesco's capacity for balance sheet improvement and strategic investments, including M&A,' Sipes said. 'These are all welcome developments.' Invesco shares were up nearly 2% in early trading Wednesday, following a 5.2% jump Tuesday even though the firm missed estimates for second quarter inflows and earnings per share. That comes after Friday's torrid session, which saw the stock surge by more than 15% in its biggest one-day rally since 2022, in the wake of the company filing the proxy statement on Thursday evening. If approved, Invesco would lower QQQ's 0.2% expense ratio to 0.18%, according to the filing and earnings call. The firm has called a special meeting on Oct. 24 to hold the vote. A quorum of more than 50% of holders of outstanding voting shares is needed. That could be a very tall hurdle to clear, according to Todd Sohn of Strategas Securities. 'Getting the message out to act to the massive investor base of QQQ holders from the last 25+ years might be difficult,' said Strategas senior ETF strategist Sohn. 'People forget, messages fall through the cracks. Things slip all the time.' ©2025 Bloomberg L.P. Sign in to access your portfolio
Bloomberg
23-07-2025
- Business
- Bloomberg
Invesco's QQQ Gambit Seen Unlocking $150 Million in Revenue
Invesco Ltd.'s move to convert its famed tech fund QQQ into an open-ended structure could translate into a $150 million yearly windfall for the asset manager. Chief Financial Officer Allison Dukes said on the company's earnings call Tuesday that transforming the Invesco QQQ Trust Series 1 from a unit investment trust into an ETF could benefit net revenue and adjusted operating income by about four basis points — or roughly $150 million, Bloomberg Intelligence estimates. In its current format, Invesco sees virtually none of the fee revenue that QQQ generates, but ETF conversion would allow the firm to reorder the revenue breakdown.
