Invesco Ltd is betting $5.7 billion that active management has a bright future.
Invesco agreed to pay about that amount in a deal with Massachusetts Mutual Life Insurance Co. to acquire its OppenheimerFunds, which specializes in picking stocks and bonds especially in the international arena. At a time when many investors are deserting active funds for products that track indexes, Invesco chief executive officer Martin Flanagan is convinced that active funds will continue to play a critical role in the portfolios of retail and institutional customers.
“Investors are looking for a broad range of ways to have us meet their outcomes—it is high-conviction active management, it is passive and it is alternatives,” Flanagan said in a telephone interview.
