Invesco repurchases $1.5 billion in preferred shares from MassMutual
Key Facts
Invesco repurchased $1.5 billion of its Series A preferred shares from MassMutual on October 26, 2026, financing the deal with a five-year floating-rate bank loan of the same amount, according to its earnings filing with the U.S. Securities and Exchange Commission. The deal comes as the company recorded $35.1 billion in net long-term inflows in the third quarter, its 13th consecutive quarter of positive flows. Chief Executive Andrew Schlossberg said long-term inflows, together with global liquidity inflows, supported annual organic growth of 6%. Management said the preferred-share repurchase reduces leverage and strengthens balance-sheet flexibility and earnings available to common shareholders. The quarterly results therefore combine continued asset gathering with a reshaping of the capital structure.
Long-term inflows were below $45.1 billion in the second quarter but exceeded $28.9 billion in the third quarter of 2025. Schlossberg said the company attracted $47 billion in global liquidity inflows during the quarter, alongside about $35 billion in long-term inflows. By investment category, the largest inflows were into ETFs and index strategies, which recorded $28.5 billion. The QQQ category attracted net inflows of $6.7 billion, while multi-asset and other investments recorded $3.3 billion. The China joint venture added $1.5 billion, according to company data.
Flows varied by client type: long-term retail inflows were $41.7 billion, while institutions recorded net outflows of $6.6 billion. Geographically, Europe, the Middle East and Africa led net inflows with $15.9 billion. The Americas recorded $10.3 billion, while inflows in Asia-Pacific were $8.9 billion. The figures reflect differences in the sources of funds by client base and region, alongside continued positive overall flows. The company said the third quarter was its 13th consecutive quarter of positive net long-term inflows.
Money market funds recorded inflows of $52.9 billion during the quarter, while market losses reduced assets under management by $26.4 billion. Foreign-exchange movements, by contrast, added $4.5 billion to assets under management. Assets under management stood at $2,537.8 billion at the end of September, up 2.7% from the previous quarter and 19.4% from the third quarter of 2025. The total reflects the combined effects of flows and market and currency movements on asset values, as market losses reduced assets during the period despite incoming flows. Money market fund inflows were also larger than the quarter's net long-term inflows.
Operating revenue was $1,873.2 million in the third quarter, up 14.2% year over year. Net income attributable to Invesco was about $294.5 million, while diluted earnings per share were $0.65. On a quarterly basis, net revenue rose 4% from the second quarter and operating expenses fell 1%. The company said this drove operating income up 13% and lifted the adjusted operating margin to 40.7%. The operating results place the deal in the context of a quarter of revenue growth and margin improvement, alongside continued long-term inflows.
The deal goes beyond the value of the preferred-share repurchase by reshaping the mix of equity and bank debt. Invesco said the transaction “reduces leverage, increases balance-sheet flexibility and enhances earnings available to common shareholders.” The company filing said total preferred shares repurchased reached $3 billion over 18 months, with $1 billion in preferred shares remaining outstanding after the deal. MassMutual received a 12.5% premium over the $1,000 per-share liquidation value, while the Series A shares carried a fixed interest rate of 5.9%. MassMutual owns about 18.5% of Invesco's outstanding common shares and will continue to hold preferred shares with an aggregate liquidation value of $1 billion.
The bank loan carries a floating interest rate and requires principal repayments of 2.5% each quarter beginning on the third anniversary of closing. The remaining balance is due in full on October 26, 2031, under the agreement's terms. Certain conditions also allow the loan's maximum principal amount to be increased to $2 billion. These maturities and repayment terms are part of the financing arrangements for the repurchase, while management said the intended effect includes reducing leverage and strengthening financial flexibility. In the latest session listed in EL7 data, IVZ shares closed at $27.08 on November 6, 2026.