Invesco Ltd (NYSE:IVZ) suffered a $1.2 billion earnings hit in the fourth quarter due to an intangible impairment charge attributed to “prior acquisitions of management contracts of US retail mutual funds”.
This led to a negative operating margin and diluted losses per share of -$1.64.
Invesco also witnessed the second quarter in a row of net outflows, totaling $8.3 billion following $9.9 billion in outflows in the third quarter, primarily driven by an exodus from money market funds.
On the upside, passive funds saw $13.9 billion worth of inflows, though this was partially offset by $7.2 billion in outflows from actively managed funds.
On the fees front, investment management revenues decreased by $3.8 million year on year, while total operating revenues fell 2% to $1.4 billion.
Invesco is facing pricing pressure in Europe following the recent approval of spot-bitcoin ETFs in the US.
Invesco’s head of ETFs for EMEA and APAC told the Financial Times this week that these approvals have led to an “unprecedented supply of new products” available to US investors, causing a pricing war among global crypto funds.
Invesco slashed its European-listed crypto fund fees by more than 60%, with its cornerstone Invesco Physical Bitcoin ETP seeing a charge reduction from 0.99% to 0.39%.
In response to today’s lukewarm results, Invesco shares fell 7% to $16 at the time of writing.