Invesco buys ETF business for $1.2bn


Invesco has confirmed it is buying Guggenheim Investments’ ETF business in a deal that will take its asset under management in the passives product to $196bn.

The $1.2bn deal will be funded with cash and debt and will complete in the second quarter, pending regulatory approval.

While iShares dominates the market with over $1.2trn in assets, Invesco will remain the fourth largest provider through its PowerShares business after Vanguard and State Street Global Advisors, which have $782.9bn and $557.7bn respectively.

Invesco will acquire $36.7bn assets through the Guggenheim deal, which adds to approximately $26.3bn that it landed through its deal with Source, which completed last month.

Invesco chief executive Martin Flanagan says the Guggenheim deal creates one of the “most comprehensive and innovative ranges” of smart beta ETFs, including fixed income, equal-weight and self-indexed products.

Guggenheim Investments president Jerry Miller says the company will focus on active portfolio management, across institutional strategies and other retail businesses.