But before we go into the numbers, I'd like to provide a sense of the macroeconomic environment that our business operate in, in the second quarter. Your, clearly, investor confidence was under pressure with deteriorating economic climate in Europe and sluggish U.S. growth, and even people's perception of the strength of China entered into the psyche of investors. And in this uncertain economic environment, investors naturally were seeking safe havens and acting very defensively like the difference from the first quarter. We're spending a lot of time with our clients as many are trying to navigate the environment. But given our broad range of investment capabilities, we believe we're well-positioned to provide outcome-oriented solution to meet our clients' needs in this challenging environment.
But with that as a backdrop, let me highlight the firm's operating results for the quarter. I'm on Slide 3 now. Long-term investment performance was strong across all time periods for the second quarter. Our investment performance contributed to solid operating results despite of the challenging markets. Invesco's quarterly dividend is now $0.1725 per share, representing the 41% increase of the last year's dividend and reflecting continued confidence in the fundamentals of our business. Return of capital to shareholders totaled $153 million during the quarter. Reflecting the challenge of the operating -- of operating in a volatile market, assets under management ended the quarter at $646 billion versus $672 billion at the end of the first quarter. Total net long-term outflows were $4.9 billion for the quarter. Operating income was $249 million for the second quarter versus $269 million in the first. The operating margin was 35% for the second quarter as compared to 36.6% in the first quarter and earnings per share were $0.41 versus $0.44 in the prior quarter.
Turning into investment performance. A continued focus on investment excellence and our efforts to build and maintain strong investment culture helps us achieve solid investment performance in spite of the volatile market environment during the quarter. And as you can see, 73% of the assets were ahead of peers on a 1-year basis. This is the highest number since August of 2009. 73% of the assets were ahead of peers on a 3-year basis and 77% of assets were ahead of peers on a 5-year basis, so very, very strong investment performance across the organization. And as I mentioned earlier, net long-term outflows were $4.9 billion, clearly reflecting the challenges in the market during the quarter as investors reacted to a barrage of negative economic news. But importantly, in the first few weeks of July, we've seen a sharp turnaround in flows, and we'll talk about that in more detail.