(Reuters) - Asset manager Invesco on Tuesday reported third-quarter profit below Wall Street estimates, hurt by lower investment management fees.
Invesco's investment management fees for the quarter was $1.04 billion, down from $1.06 billion a year ago. The management fees that the Atlanta-based company receives as a portion of its total assets under management (AUM) is its main source of income.
Asset managers have found their fees squeezed in a high interest-rate environment due to outflows, with Invesco seeing net outflows of $16.1 billion from money market funds in the third quarter, compared with net inflows of $10 billion in the year-ago period.
BlackRock (NYSE:BLK), the world's largest asset manager, also said earlier in the month that investors are likely waiting for yields to peak before making any significant changes in their asset allocation.
Invesco's ending AUM was down 3.3% at $1.49 trillion on a quarterly basis.
The company reported an adjusted profit of 35 cents per share for the third quarter. Analysts on average had expected a profit of 36 cents per share, as per LSEG data.
"We are not immune to the revenue challenges faced by the industry," Invesco CEO Andrew Schlossberg said in a statement.
Invesco's net revenue was down 1.1% at $1.10 billion.