Invesco Ltd.
(
IVZ
) announced a marginal 0.7% decline in its preliminary month-end
assets under management (AUM) for the month of April 2012. The
company's AUM for the reported month was $668.4 billion compared
with $672.8 billion at the end of March 2012.
Invesco's April AUM decline was a result of total net outflows
and market depreciation offsetting inflows from foreign exchange
worth $2.3 billion. Total net outflows included $2.6 billion worth
of payment for Invesco PowerShares QQQ and $0.9 billion active
fixed income outflow from the UK.
Invesco's preliminary Active AUM totaled $559.1 billion at the
end of April 2012, reflecting a 0.2% decrease from $560.2 billion
in the prior month. Moreover, in the quarter under review,
preliminary Passive AUM was $109.3 billion down 2.9% compared with
$112.6 billion in March 2012.
As of April 30, 2012, Invesco's average assets stood at $667.3
billion, while the total value of average active assets came in at
$556.3 billion.
At April-end, Invesco's total equity assets declined 1.8% to
$299.8 billion from $305.2 billion in March 2012. However, the
company's fixed income assets modestly grew 0.3% to $155.5 billion
from $155.0 billion in March 2012.
During April, Invesco's balanced assets summed up to $51.4
billion, increasing 1.8% from the previous month. Further,
alternative AUM also inched up 0.1% to $87.7 billion during April
from $87.6 billion recorded in the prior month.
Further, Invesco's money market AUM arrived at $74.0 billion
(including $70.0 billion in institutional money market AUM and $4.0
billion in retail money market AUM) in April, slightly going down
0.7% from $74.5 billion, recorded in March 2012.
Peer Performance
Earlier this week,
Franklin Resources Inc
. (
BEN
) declared its preliminary month-end AUM for April 2012. The
company reported preliminary AUM of $726.4 billion for its
subsidiaries, as of April 30, 2012, displaying a marginal increase
from $725.7 billion as of March 31, 2012.
Our Take
Long-term investment performance of Invesco has been improving
owing to the recovering global equity market, which is further
expected to boost the company's operating results. Moreover, the
operating leverage is anticipated to improve substantially over the
long term due to the company's cost control initiatives.
Invesco's broad diversification comfortably positions it to
benefit from enhanced global investment flows. However, the
volatile U.S. dollar and mounting competition make us
apprehensive.
Invesco currently retains a Zacks #2 Rank, which translates into
a short-term Buy rating.
FRANKLIN RESOUR (BEN): Free Stock Analysis
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INVESCO LTD (IVZ): Free Stock Analysis Report
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