Oct 22 (Reuters) - Asset manager Invesco ( IVZ ) beat

Wall Street estimates for third-quarter profit on Tuesday,

helped by strong inflows and higher fees as its assets under

management (AUM) hit a record high of $1.8 trillion.

WHY IT'S IMPORTANT

Growing expectations of a soft landing for the U.S. economy

and optimism around the Federal Reserve's policy easing have

boosted investor confidence, driving a market rally and inflows

into investment products such as exchange-traded funds.

This surge has increased the value of AUMs and the fees

earned by asset managers such as Invesco ( IVZ ).

BY THE NUMBERS

Atlanta, Georgia-based Invesco's ( IVZ ) investment management fees

rose to $1.1 billion in the third quarter from $1 billion a year

ago.

Excluding one-time costs, the company earned a profit of

$199.8 million, or 44 cents per share, in the three months ended

Sept. 30, compared with analysts' average estimate of 43 cents,

according to data compiled by LSEG.

The company's total net flows stood at $12.7 billion,

compared with the total net outflow of $9.9 billion a year ago.

Invesco's ( IVZ ) performance fees, which is earned when returns

meet certain previously agreed-upon criteria, rose 40% in the

third quarter.

CONTEXT

Invesco ( IVZ ) is a global independent investment management firm

with branches in more than 20 countries. The fees it earns from

managing clients' assets is its chief source of revenue.

The company faced softer inflows in recent years as elevated

interest rates on bank deposits boosted the appeal of safe-haven

assets such as cash.

Earlier this month, larger peer BlackRock ( BLK ) also

reported a higher third-quarter profit and a record high AUM.