Invesco targets $100 billion in European ETF assets by end of 2024


Invesco has set itself the goal of growing its index fund business in Europe by nearly 50% over the next two years, despite a “lost year” of growth.

“Spend the 100 billion dollars [mark] organic structure is critical for us as we seek to grow in the region,” said Gary Buxton, head of Invesco’s ETF business in Europe, Middle East and Africa. Financial News.

“In the old country of forecasts, we expected to get there by the end of 2023, but the reality is that it will probably be closer to the end of 2024. That is our main ambition.”

The US asset manager, which oversees $1.4 billion globally across active and passive funds, is among the best-selling ETF providers in Europe so far this year. It raised $7.8 billion in new money between January and the end of July, according to figures from consultancy ETFGI.

It is the fourth largest inflow of new investor funds to the region behind BlackRock’s iShares, Vanguard and Amundi, which have collectively raised more than $47 billion.

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Overseeing nearly $67 billion in assets, Invesco is the sixth-largest ETF provider in Europe behind Vanguard, which has $84 billion.

But despite attracting billions of dollars of new money in the first seven months of 2022, challenging market conditions – characterized by rising inflation and growing geopolitical tensions – have meant that global ETF assets of Invesco are broadly stable compared to the end of last year.

“The reality is we’ve had a great year in asset gathering, but we’ve been hit by the market like everyone else,” Buxton said.

“For most of the large-scale ETF providers in Europe, their assets are below their 2021 exit level – we’re about flat; 2022 has been a flat or lost year, depending on how you see it. »

Buxton said he expects Invesco’s future asset growth in Europe to be fueled in part by product innovation, including providing exposure to digital assets.

Invesco was one of the first ETF providers to enter the crypto space with the launch of its physical bitcoin ETP in Europe last November – a product that came two years after its blockchain ETF.

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The “middle-range retail” channel, particularly when investors buy ETFs through robo-advisory platforms, also offers “tremendous growth potential,” Buxton said.

ETFs are one of the fastest growing sectors of the fund management industry, with global assets at the end of 2021 surpassing the $10 billion mark.

Salim Ramji, global head of BlackRock’s iShares business, told FN last year that he expects assets to hit $15 billion by 2025, echoing other bullish forecasts. Of the industry.

Invesco’s Buxton is equally optimistic and expects European assets to continue on an upward trajectory once market conditions stabilize.

“What it does is you wonder if it’s all a year away or if there’s going to be a catch-up phase where the growth cycle gets a lot faster,” Buxton said.

“If you look back through the growth of ETFs, the industry has benefited well from market shocks. We came out of the Covid cycle, we did that in 2008.”

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