April 23 (Reuters) - Invesco on Tuesday reported a 14.4% drop in first-quarter profit as the asset manager's fees took a hit from customers shifting towards lower-yield products.

Investment management fees, the company's chief revenue source, dipped 1.9% to $1.16 billion on an adjusted basis.

Asset managers have seen strong demand for their low-fee offerings like passively-managed products and exchange traded funds (ETFs), as uncertainty around the timing of interest-rate cuts prompts clients to opt for less risky investment avenues.

That pulled down Invesco's net revenues by 2.1% to $1.05 billion, even though assets under management rose 12% to $1.66 trillion at quarter-end.

Adjusted performance fees, which Invesco earns when fund returns meet certain targets, slumped nearly 80%.

Excluding one-time costs, the company earned $148.4 million, or 33 cents per share, compared with $173.4 million, or 38 cents per share, a year ago.

Earlier this month, larger peer BlackRock reported a 36% jump in quarterly profit, helped by higher advisory fees. (Reporting by Jaiveer Singh Shekhawat in Bengaluru; Editing by Devika Syamnath)