Jan 28 (Reuters) - Asset manager Invesco ( IVZ ) on

Tuesday beat Wall Street estimates for fourth-quarter profit, as

rising investor allocations to equities boosted inflows and fee

income on managed assets.

WHY IT'S IMPORTANT

Equity markets have rallied as anticipation of a

corporate-friendly fiscal and regulatory policy under the Trump

administration has fueled investor optimism.

The Federal Reserve's 100-basis-point rate cuts in the later

half of 2024 further revived investor interest in passively

managed mutual and exchange traded funds - Invesco's ( IVZ ) core

offerings - as safe havens like cash and treasury bonds see

dwindling yields.

BY THE NUMBERS

Invesco ( IVZ ) ended the quarter with $1.85 trillion in assets

under management as of Dec. 31, up 16.4% from a year ago, also

boosting the corresponding investment management fees.

Invesco's ( IVZ ) investment management fees rose 12.4% to $1.13

billion during the reported quarter.

The Atlanta, Georgia-based asset manager reported an

adjusted profit of $237.3 million, or 52 cents per share, for

the October-to-December quarter, compared with analysts' average

estimate of 47 cents, according to data compiled by LSEG.

Total net flows stood at $60.9 billion, compared with total

net outflows of $8.3 billion a year ago.

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

agreed-upon expectations, rose 75% in the quarter.

CONTEXT

An independent investment management firm, Invesco ( IVZ ) provides

retail and institutional solutions to clients across 120

countries.

Asset inflows suffered in recent years as investors favored

cash and treasury bonds amid heightened interest rates.

Earlier this month, larger peer BlackRock ( BLK ) also

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