Latest news with #InvescoLtd
The Star
6 days ago
- Business
- The Star
Fund giants put faith in ‘Trump put' to keep stock rally rolling
WASHINGTON: A cohort of the world's largest asset managers is leaning harder into the rally in risk assets as US stocks push to fresh highs, defying persistent trade and geopolitical tensions. Firms such as Invesco Ltd, Fidelity International Ltd and JPMorgan Asset Management are reinforcing bullish bets across technology shares from the United States to Asia as well as on emerging-market assets. The high-octane wager is that while President Donald Trump is threatening to disrupt the economic order anew, he will step back from the brink. That's helping justify risk exposure at a time when valuations are stretched and macro headwinds persist. In a market that rewards conviction and punishes caution, sitting out is starting to look like the riskiest position of all. 'People have really bought into this belief that there is a Trump put, that if markets correct or if US interest rates go up, Trump will back off as he did in April: that trade is on,' said Chang Hwan Sung, a multi-asset portfolio manager in Invesco's investment solutions team in Hong Kong. 'As we navigate through this uncertainty, we are very likely to become more pro-risk.' This shared conviction isn't just a general sense of optimism; it's a calculated bet that the inherent volatility of a second Trump term will ultimately yield to economic pragmatism. For these global fund managers, that translates directly into a still-resilient outlook for international trade and supply chains, powering everything from Indonesian local-currency bonds and South Korean chipmakers to US growth stocks. Invesco has boosted its US equity allocation ahead of second-quarter corporate earnings, which it anticipates will provide further support for stocks, Chang said. And while the asset manager is 'overweight' on US stocks, it sees even better prospects elsewhere. 'From what I see happening across the globe, we are very likely to be a bit more tilted towards non-US markets such as Europe and emerging markets,' Chang said. Invesco sees medium-term opportunities in South Korea due to optimism over the government's corporate-governance reforms. The nation's benchmark Kospi index has already gained more than 30% this year, making it one of the world's best-performing major equity gauges. Invesco is also adding to holdings of local currency emerging-market bonds in its cross-asset portfolios as it sees these deriving the most gain from expected US interest rate cuts, Chang said. 'For fixed income, we like high yielders like Indonesia and other high interest-rate countries because they will probably benefit the most,' he said. Fidelity favours shares in Taiwan due to the island's high concentration of technology firms, while it likes South Korean stocks for their inexpensive valuations. 'Taiwan is probably one of the best value ways to play the technology cycle upswing, and we see a good case for being overweight,' said Ian Samson, a multi-asset fund manager at the money manager in Singapore. 'If you look at graphics processing unit (GPU) exports from Taiwan, they're just off the charts; it's incredible,' he said, referring to GPU, a type of chip used to process digital images. Fidelity isn't universally positive on risk assets. The firm's cross-asset portfolios are turning bearish on investment-grade and high-yield US corporate bonds due to their low differential to Treasury yields and are buying gold as a hedge, Samson said. JPMorgan Asset says medium US tech stocks still have room to gain due to the market's optimism over artificial intelligence (AI). The tailwinds of AI demand will offer further support for mid-cap tech stocks in the United States, said Kerry Craig, an investment strategist at the company in Melbourne. 'That adoption of AI across the broader US and global economy still has room to run,' he said. Fidelity, Invesco and JPMorgan Asset aren't alone in recommending 'overweight' holdings of US equities. Goldman Sachs Group Inc this month increased its target for the S&P 500 Index, while HSBC Holdings Plc has recommended higher US stock allocations in its multi-asset portfolios. 'We are really leaning back into US equities,' said Max Kettner, multi-asset strategist at HSBC in London. Corporate profit reports will provide a catalyst for US stocks, given low expectations, he said. 'People are probably overestimating the negative impact of tariffs on margins and earnings, and they're underestimating the positive tailwind from the weaker dollar,' Kettner said. — Bloomberg
Bloomberg
18-07-2025
- Business
- Bloomberg
Invesco Wants to Break Open Its $355 Billion Piggy Bank
Welcome to ETF IQ, a weekly newsletter dedicated to the $14 trillion global ETF industry. I'm Bloomberg News reporter and anchor Katie Greifeld. It's one of the biggest ironies in asset management: famed tech fund QQQ is the most profitable product in the $11.7 trillion industry, yet Invesco Ltd. earns next to nothing for running it. Now, the firm is asking shareholders to change that.
Yahoo
18-07-2025
- Business
- Yahoo
Invesco Aims to Unlock QQQ's Hundreds of Millions in Profit
(Bloomberg) -- It's a quirk in the booming world of passive investing: Famed tech fund QQQ is the most profitable offering in the $11.7 trillion ETF industry, but Invesco Ltd. earns virtually nothing from running it. Now the asset manager is asking shareholders to change that. The Dutch Intersection Is Coming to Save Your Life Advocates Fear US Agents Are Using 'Wellness Checks' on Children as a Prelude to Arrests Mumbai Facelift Is Inspired by 200-Year-Old New York Blueprint LA Homelessness Drops for Second Year Manhattan, Chicago Murder Rates Drop in 2025, Officials Say Invesco filed a proxy statement with the Securities and Exchange Commission on Thursday asking owners of the Invesco QQQ Trust Series 1 for their blessing to convert it into an open-ended fund from a unit investment trust, a little-used structure dating back to the birth of the first exchange-traded funds in the 1990s. It's a seemingly small ask with enormous consequences for Invesco. With $355 billion in assets and a 0.2% expense ratio, a back-of-the-envelope calculation shows that QQQ generates roughly $711 million in annual fee revenue — more than any other ETF, data compiled by Bloomberg show. But in its current setup as a unit investment trust, the bulk of that is divided between the fund's trustee — the Bank of New York Mellon — and the provider of the underlying index, which is Nasdaq. As mandated by the fund's prospectus, any remaining revenue must be spent on marketing QQQ. That leaves essentially nothing for Invesco, the fund's sponsor. Theoretically, that dynamic would change if shareholders approve the firm's request. And that would be a win-win for both Invesco and QQQ holders, according to Bloomberg Intelligence. 'They have basically been running this fund, which is the greatest ever, as a charity,' said ETF analyst Athanasios Psarofagis, referring to QQQ's nearly 1,260% return since its 1999 inception. 'If they can re-purpose that, it could free up revenue to invest in other areas, like new products.' Converting into an open-ended fund may open the door to changing the revenue breakdown, according to Psarofagis. Invesco shares rose as much as 11% on Friday to the highest level since February. Invesco will lower QQQ's expense ratio by two basis points to 0.18% if the item, along with two others, are approved, according to the filing. Should the vote pass, Invesco will also replace BNY Mellon as the fund's trustee with a board of individuals, and appoint Invesco Capital Management as QQQ's investment adviser, a Friday press release said. Unit investment trusts don't have investment advisers, so no firm is currently performing that role. The firm is calling for a special meeting on Oct. 24 to hold the vote. Invesco declined to comment on Thursday beyond the filing. (Updates with Friday's share move for Invesco and press release.) What the Tough Job Market for New College Grads Says About the Economy How Starbucks' CEO Plans to Tame the Rush-Hour Free-for-All Godzilla Conquered Japan. Now Its Owner Plots a Global Takeover A Rebel Army Is Building a Rare-Earth Empire on China's Border Why Access to Running Water Is a Luxury in Wealthy US Cities ©2025 Bloomberg L.P. Sign in to access your portfolio
Yahoo
17-07-2025
- Business
- Yahoo
Invesco Aims to Unlock Hundreds of Millions in Profit From QQQ
(Bloomberg) -- It's a quirk in the booming world of passive investing: Famed tech fund QQQ is the most profitable offering in the $11.7 trillion ETF industry, but Invesco Ltd. earns virtually nothing from running it. Now the asset manager is asking shareholders to change that. The Dutch Intersection Is Coming to Save Your Life Advocates Fear US Agents Are Using 'Wellness Checks' on Children as a Prelude to Arrests LA Homelessness Drops for Second Year Manhattan, Chicago Murder Rates Drop in 2025, Officials Say Invesco filed a proxy statement with the Securities and Exchange Commission on Thursday asking owners of the Invesco QQQ Trust Series 1 for their blessing to convert it into an open-ended fund from a unit investment trust, a little-used structure dating back to the birth of the first exchange-traded funds in the 1990s. It's a seemingly small ask with enormous consequences for Invesco. With $355 billion in assets and a 0.2% expense ratio, a back-of-the-envelope calculation shows that QQQ generates roughly $711 million in annual fee revenue — more than any other ETF, data compiled by Bloomberg show. But in its current setup as a unit investment trust, the bulk of that is divided between the fund's trustee — the Bank of New York Mellon — and the provider of the underlying index, which is Nasdaq. As mandated by the fund's prospectus, any remaining revenue must be spent on marketing QQQ. That leaves essentially nothing for Invesco, the fund's sponsor. Theoretically, that dynamic would change if shareholders approve the firm's request. And that would be a win-win for both Invesco and QQQ holders, according to Bloomberg Intelligence. 'They have basically been running this fund, which is the greatest ever, as a charity,' said ETF analyst Athanasios Psarofagis, referring to QQQ's nearly 1,260% return since its 1999 inception. 'If they can re-purpose that, it could free up revenue to invest in other areas, like new products.' Invesco will lower QQQ's expense ratio by two basis points to 0.18% if the item, along with two others, are approved, according to the filing. The firm is calling for a special meeting on Oct. 24 to hold the vote. Converting into an open-ended fund may open the door to changing the revenue breakdown, according to Psarofagis. Invesco declined to comment beyond the filing. What the Tough Job Market for New College Grads Says About the Economy How Starbucks' CEO Plans to Tame the Rush-Hour Free-for-All Forget DOGE. Musk Is Suddenly All In on AI The Quest for a Hangover-Free Buzz How Hims Became the King of Knockoff Weight-Loss Drugs ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
17-07-2025
- Business
- Bloomberg
Invesco Aims to Unlock Hundreds of Millions in Profit From QQQ
It's a quirk in the booming world of passive investing: Famed tech fund QQQ is the most profitable offering in the $11.7 trillion ETF industry, but Invesco Ltd. earns virtually nothing from running it. Now the asset manager is asking shareholders to change that. Invesco filed a proxy statement with the Securities and Exchange Commission on Thursday asking owners of the Invesco QQQ Trust Series 1 for their blessing to convert it into an open-ended fund from a unit investment trust, a little-used structure dating back to the birth of the first exchange-traded funds in the 1990s.
