Andrew Schlossberg, Invesco's CEO, has orchestrated a dramatic turnaround at the fund giant, slashing costs and streamlining operations to revive growth. The firm's assets under management have climbed to $1.7 trillion, up from $1.4 trillion when he took the helm in 2022, according to company filings.
Cost-Cutting and Strategic Shift
Schlossberg, who became CEO in June 2022, inherited a company struggling with high expenses and underperforming funds. His first move was to cut $400 million in annual costs, including layoffs and office closures, to improve profitability. "We were dying," Schlossberg said in an interview, reflecting on the company's state before his leadership.
The cost-cutting was paired with a strategic shift toward exchange-traded funds (ETFs) and technology. Invesco now manages $400 billion in ETFs, a 25% increase since 2022, and has invested heavily in digital tools for financial advisors.
Performance Improvements
The turnaround has also focused on fund performance. Invesco's actively managed equity funds have seen improved relative returns, with 70% of them outperforming their benchmarks over the past year, according to Morningstar data cited by the company.
Schlossberg emphasized the importance of restoring client trust. "Our clients needed to see that we were serious about change," he said. "We have rebuilt our investment teams and sharpened our focus on what we do best."
Impact on the Industry
Invesco's revival is being watched closely by the asset management industry, which is grappling with fee pressure and the rise of passive investing. Schlossberg's strategy of combining cost discipline with innovation could serve as a model for other firms.
The company's stock has risen 30% since his appointment, outperforming the S&P 500. Analysts note that Invesco's shift to ETFs and technology is paying off, but challenges remain, including integrating recent acquisitions and navigating market volatility.
Future Outlook
Looking ahead, Schlossberg plans to continue expanding Invesco's ETF lineup and enhancing its digital platform. The firm is also eyeing growth in private markets and Asia, where it sees significant opportunity.
"We are not done yet," Schlossberg said. "We have built a solid foundation, and now we are ready to grow again."
