Moats for the US-Based Traditional Asset Managers Like Invesco Continue to Diminish

For a long time, Invesco was our top pick among the traditional US-based asset managers we cover, having generated solid organic growth in its long-term assets under management (1.7% annually on average during 2008-17) with a broadly diversified platform (including a niche ETF product platform). We held this opinion despite its generating below-average operating profitability, primarily because of the costs associated with its more retail-centric distribution platform.