) reported a fall in its preliminary month-end assets under
management (AUM) for Jan 2014. The AUM for the month was $764.9
billion, down 1.8% from $778.7 billion at the end of Dec 2013.
Unfavorable market returns and net outflows were the primary
reasons for the decline. Further, foreign exchange led to a $2.0
billion decrease in AUM. In January, Invesco's preliminary
average total AUM was $771.0 billion and preliminary average
active AUM was $632.8 billion.
At the end of January, Invesco's total equity AUM fell 3.2% from
the prior month to $370.9 billion. The company's money market AUM
totaled $80.6 billion, down 2.5% from Dec 2013. Further, the
company's balanced AUM was $52.1 billion, decreasing 2.3% from
$53.3 billion as the end of Dec 2013.
However, Invesco's fixed income AUM nudged up 0.6% from the prior
month to $172.7 billion. Additionally, alternative AUM came in at
$88.6 billion in the reported month, inching up 0.8% from the
Among other investment managers,
Franklin Resources Inc.
) announced preliminary AUM of $857.2 billion by its subsidiaries
for Jan 2014, which marked a 2.5% fall from $879.1 billion as of
Dec 2013. Further,
Legg Mason Inc.
) is expected to announce its preliminary AUM for the month of
Jan 2014 later this week.
Invesco's operating leverage is likely to improve significantly
over the long term, driven by cost-control initiatives. Further,
the rebound in the equity market and improvement in global
investment flows will act as catalysts. However, the company's
high debt levels and rising expenses remain concerns.
Currently, Invesco carries a Zacks Rank #2 (Buy). A
better-performing company in the same industry with a Zacks Rank
#1 (Strong Buy) is
Waddell & Reed Financial, Inc.
FRANKLIN RESOUR (BEN): Free Stock Analysis
INVESCO LTD (IVZ): Free Stock Analysis Report
LEGG MASON INC (LM): Free Stock Analysis
WADDELL&REED -A (WDR): Free Stock Analysis
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