July 23 (Reuters) - Invesco ( IVZ ) reported a rise in

second-quarter profit on Tuesday, as a stock market rally has

helped lift assets' value and related commission earned by the

money manager.

Hopes of a soft landing for the U.S. economy and investors'

shopping spree of artificial intelligence-linked stocks have

helped the equity markets scale record highs in 2024.

The benchmark S&P 500 index rose 4% in the reported

quarter, signaling a rebound in investor confidence, reflected

in client inflows into the asset manager's ETFs and index funds.

Assets under management (AUM) at the end of the quarter

climbed 11.5% to $1.72 trillion. Total net flows stood at $28.2

billion for the second quarter, up from $14.5 billion last year.

This further helped Invesco's ( IVZ ) investment management fees,

the firm's chief revenue source, rise to $1.07 billion from

$1.03 billion in the year-ago period.

Performance fees, which Invesco ( IVZ ) earns when the returns from

its funds meet certain previously agreed-upon criteria, fell

nearly 56%.

Excluding one-time costs, the company earned $196.2 million,

or 43 cents per share, compared with $144.4 million, or 31 cents

per share, a year ago.

Earlier this month, larger peer BlackRock ( BLK ) reported a

9% rise in quarterly profit, helped by a boost in its AUM.

Invesco's ( IVZ ) shares lost 10% in the three months ended June 30,

compared to a little over 2% rise in the S&P 500 financial index

during the same period.