Core Viewpoint - Invesco Variable Rate Investment Grade ETF (VRIG) provides an attractive dividend yield due to the prolonged macro environment of elevated interest rates, despite rates no longer being at their maximum level [1]. Group 1 - The ETF benefits from a macroeconomic backdrop characterized by high interest rates, which enhances its dividend yield [1].

Core Insights - Invesco Mortgage Capital Inc. (IVR) is set to report its fourth-quarter 2025 results on January 29, 2026, with expectations of year-over-year growth in earnings available for distribution per common share [1][10] Group 1: Earnings Performance - In the last reported quarter, IVR posted earnings available for distribution per common share of 58 cents, with an average negative earnings surprise of 0.61% over the past four quarters [2][6] - The Zacks Consensus Estimate for fourth-quarter earnings remains unchanged at 58 cents, indicating a 9.4% increase from the same quarter last year [6] Group 2: Market Conditions - The mREIT sector experienced favorable conditions in the fourth quarter due to lower volatility in fixed-income markets, which likely tightened mortgage spreads and improved IVR's book value per share [4][10] - The Federal Reserve's two interest rate cuts in the fourth quarter led to a significant drop in mortgage rates, with the 30-year fixed mortgage rate falling below 6%, potentially increasing mortgage demand and refinancing activities [5][10] Group 3: Operational Impacts - The decline in mortgage rates is expected to have resulted in a rise in refinancing and origination volumes, which may have increased the mortgage servicing rights amortization for IVR [5][10]

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Quick Read Invesco Semiconductors ETF (PSI) returned 46% over the past year through equal weighting across 30 semiconductor companies. PSI holds only 3.86% in NVIDIA and excludes Taiwan Semiconductor and ASML entirely despite their critical supply chain roles. Investors rethink ‘hands off’ investing and decide to start making real money When individual semiconductor stocks can swing from losses to profits within two years, or when analyst estimates miss by over 1,000%, individual semiconductor stoc ...

Core Viewpoint - The article evaluates the Invesco Taxable Municipal Bond ETF (BAB) as a potential investment option at its current market price, emphasizing the importance of quality investing and diversification for long-term success [1]. Group 1: Investment Strategy - The investment strategy focuses on investing in quality assets, diversifying the portfolio, and adding to positions at opportune times while maintaining a long-term perspective [1]. - The article highlights the importance of avoiding high-risk chasing and following advice that is not well understood, which can lead to pitfalls in investing [1]. Group 2: Fund Management and Features - The Invesco Taxable Municipal Bond ETF is managed by Invesco and is part of a broader investment strategy that includes managed income portfolios targeting safe and reliable yields of approximately 8% [1]. - The fund aims to leverage high-yield opportunities within the CEF and ETF space, catering to both active and passive investors of varying experience levels [1]. - A significant feature of the fund is that the majority of its holdings are monthly-payers, which facilitates faster compounding and provides steady income streams [1].

Core Perspective - The investment strategy is informed by a background in the oil and gas sector, emphasizing efficiency, carefulness, and discipline in decision-making [1] Investment Focus - The company has a sustained interest in U.S. equity markets, particularly in technology, energy, and healthcare sectors [1] - The investment approach has evolved from growth investing to a blend of value and growth, focusing on the underlying economics of businesses [1] Competitive Advantage - There is an emphasis on evaluating the durability of a company's competitive advantage, referred to as its "moat," and its ability to generate consistent free cash flow over time [1] Investment Philosophy - The philosophy includes a conservative orientation, seeking to minimize downside risk while looking for upside potential [1] - As retirement approaches, there is a shift towards prioritizing income-generating assets such as dividend-paying equities and REITs [1] Community Engagement - The company values participation in a community of investors to share insights on real-world business fundamentals and intelligent investing [1] - There is a commitment to investing in ecologically sensitive businesses, reflecting a broader concern for environmental impact [1]

Core Insights - General Motors (GM) and Invesco (IVZ) have exceeded Q4 earnings expectations, with GM's stock rising over 50% in the past year and IVZ also showing strong performance, although both are trading at discounts compared to the S&P 500 [1][2] General Motors (GM) - GM's Q4 adjusted EPS was $2.51, beating expectations of $2.20 by 14% and increasing over 30% from $1.92 a year ago [4] - Despite a net loss of $3.21 billion due to $7.2 billion in special charges related to unused EV manufacturing equipment, GM announced a $6 billion share repurchase plan and a 20% dividend increase, indicating confidence in long-term cash flow [3] - GM expects FY26 EPS to rise to $11-$13 from $10.60 in FY25, with adjusted EBIT projected at $13 billion-$15 billion and adjusted automotive free cash flow at $9 billion-$11 billion [11] - GM anticipates lower EV volume in 2026 but expects to improve EV losses by $1-$1.5 billion through production adjustments [12] - GM's valuation metrics show it trading at 0.4X forward sales and 6X forward earnings, with a PEG ratio under 1, indicating it is undervalued [14] Invesco (IVZ) - Invesco reported a Q4 adjusted EPS of $0.62, exceeding expectations of $0.57 by nearly 9% and increasing 19% from $0.52 in the same quarter last year [9] - The firm experienced net inflows of $19.1 billion, raising its assets under management (AUM) to a record $2.2 trillion, driven by index and fixed income services, as well as ETFs [8] - Invesco's strategic priorities for FY26 include expanding private markets through partnerships, simplifying its portfolio, and focusing on ETF growth [13] - Invesco's valuation metrics show it trading near 2X forward sales and 10X forward earnings, with a PEG ratio under 1, suggesting it is also undervalued [14] - Invesco's annual dividend yield stands at 2.93% [15]

Core Insights - Invesco Ltd. is a significant player in the investment management industry, competing with firms like BlackRock and Vanguard [1] Financial Performance - Invesco reported earnings per share (EPS) of $0.62 for Q4 2025, exceeding the estimated $0.57, representing an 8.03% positive surprise and an increase from $0.52 in the previous year [2][6] - The company's revenue for the quarter was approximately $1.26 billion, slightly below the estimated $1.31 billion, but still an 8.8% increase year-over-year, and it exceeded the Zacks Consensus Estimate of $1.24 billion by 1.39% [3][6] Assets and Growth - Invesco achieved record assets under management of $2.2 trillion, with net long-term inflows exceeding $19 billion, reflecting a 5% annualized organic growth [4][6] Financial Metrics - The company has a price-to-earnings (P/E) ratio of approximately 11.63 and a price-to-sales ratio of about 1.91, with a low debt-to-equity ratio of 0.12, indicating conservative debt usage [5] - A current ratio of 1.79 suggests a strong ability to cover short-term liabilities [5]

Core Insights - Invesco's fourth-quarter 2025 adjusted earnings of 62 cents per share exceeded the Zacks Consensus Estimate of 57 cents, marking a 19.2% increase from the prior-year quarter [1][9] - The company's shares rose 4% in pre-market trading following the better-than-expected results [1] Financial Performance - Adjusted net revenues for the quarter were $1.26 billion, an 8.8% year-over-year increase, slightly surpassing the Zacks Consensus Estimate of $1.25 billion [5][9] - Full-year adjusted earnings reached $2.03 per share, exceeding the Zacks Consensus Estimate of $1.99, and reflecting an 18.7% increase from the previous year [4] - Quarterly adjusted operating expenses were $801.1 million, up 4.4% year over year, with an adjusted operating margin of 36.4%, up from 33.7% a year ago [6] Assets Under Management (AUM) - As of December 31, 2025, AUM reached a record $2.17 trillion, representing a 17.5% year-over-year increase, with average AUM at $2.16 trillion, up 18.5% [7][9] - The company experienced long-term net inflows of $19.1 billion during the reported quarter [7][9] Balance Sheet and Share Repurchases - As of December 31, 2025, cash and cash equivalents were $1.04 billion, an increase from $973.1 million as of September 30, 2025, with long-term debt at $1.83 billion [8] - In the reported quarter, Invesco repurchased 1 million shares for $25 million [10] Strategic Outlook - Invesco's strong AUM balance, diverse product offerings, and solid balance sheet are expected to support its financial performance [11] - The company is positioned to pursue sustainable capital distributions due to its decent balance sheet and liquidity [11]

Core Insights - Invesco has made significant strategic moves in 2025, including asset sales, joint ventures, and a focus on private markets, which have contributed to a record $2.2 trillion in assets under management (AUM) by year-end [5][6][12]. Strategic Partnerships and Transactions - Invesco announced a deal with CI Global Asset Management for CI GAM to acquire its Canadian mutual fund and ETF complex, which includes 100 funds with approximately $19 billion in AUM [1]. - The company completed the sale of Intelliflo to Carlyle and sold a majority interest in its Indian asset management business to the Hinduja Group, forming a local joint venture while retaining minority ownership [2]. Financial Performance - Invesco repurchased $1.5 billion of preferred stock in 2025, reducing outstanding preferred stock from $4.0 billion to $2.5 billion, which is expected to deliver a $0.20 run-rate EPS benefit [3][8]. - The company reported a net revenue of $1.3 billion for the fourth quarter, an increase of $102 million year-over-year, driven by higher average AUM and the QQQ reclassification [13]. Growth Strategy - Management emphasized the expansion into private markets through partnerships with Barings and LGT, aiming to simplify operations and pursue new distribution channels [6][9]. - The late-December conversion of the QQQ ETF lowered fees for shareholders and increased reported long-term AUM, contributing to a record total AUM of $2.2 trillion [10][7]. AUM and Inflows - Invesco achieved $19 billion in net long-term inflows during the fourth quarter, equating to a 5% annualized long-term organic growth rate [11]. - The firm reported record AUM of $2.2 trillion, up $324 billion from the fourth quarter of 2024, attributed to net long-term inflows and market gains [12]. Balance Sheet and Capital Management - The leverage ratio improved from 2.8x a year ago to 2.2x for the fourth quarter, with preferred stock leverage at 0.73x [19]. - Invesco plans to target a total payout ratio of approximately 60% for 2026, with common share repurchases expected to increase to $40 million in the first quarter [17]. Future Outlook - Looking ahead to 2026, Invesco anticipates continued costs associated with the hybrid platform and QQQ-related marketing, with annualized operating expenses projected at $3.2 billion [16]. - The company remains focused on using operating cash flow to reduce debt and has opportunities to repurchase additional preferred stock [18].