Invesco's August AUM Falls 1.3% - Analyst Blog

By
A A A

Invesco Ltd. ( IVZ ) reported a fall in its preliminary month-end assets under management (AUM) for Aug 2013. The AUM for the month was $719.7 billion, down 1.3% from $729.4 billion at the end of Jul 2013.

Unfavorable market returns, decrease in money market AUM and outflows in PowerShares QQQ were the primary reasons for the fall. However, foreign exchange led to a $1.5 billion increase in AUM. Further, long-term net flows were steady for the month.

In August, Invesco's preliminary active AUM was $593.9 billion, down 1.2% from the prior month. Likewise, preliminary passive AUM fell 2.2% from Jun 2013 to $ $125.8 billion.

At the end of July, Invesco's total equity AUM dropped 1.7% to $334.2 billion from $339.8 billion at the end of Jul 2013. Moreover, fixed income AUM dipped 1.4% from the prior month to $169.8 billion.

Invesco's balanced AUM rose marginally to $51.7 billion in the reported month. The company's money market AUM totaled $79.9 billion, sliding 1.1% from the previous month. Moreover, alternative AUM came in at $84.3 billion in the reported month, falling 1.1% from the prior-month level.

Notably, all the figures have been adjusted by excluding Atlantic Trust's balanced and equity AUM of $21.7 billion and $0.5 billion, respectively. The latter is to be sold to Canadian Imperial Bank of Commerce ( CM ) for $210 million.

Among other investment managers, Franklin Resources Inc. ( BEN ) announced preliminary AUM of $817.3 billion by its subsidiaries for Aug 2013, down 2% from the prior month. Similarly, for Legg Mason Inc. ( LM ), preliminary AUM was $645 billion for Aug 2013, decreasing 1.8% from the previous month.

We expect operating leverage to improve significantly over the long term due to the company's cost-control initiatives. Additionally, meaningful capital deployment activities continue to enhance shareholder value.

However, we are concerned about its high debt levels. Overall, Invesco is poised to benefit from improvement in global investment flows, given the company's diversified footprint.

Currently, Invesco carries a Zacks Rank #3 (Hold).



FRANKLIN RESOUR (BEN): Free Stock Analysis Report

CDN IMPL BK (CM): Free Stock Analysis Report

INVESCO LTD (IVZ): Free Stock Analysis Report

LEGG MASON INC (LM): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: BEN , CM , IVZ , LM

Zacks.com

Zacks.com

More from Zacks.com:

Related Videos

Tiny Homes With Big Appeal
Tiny Homes With Big Appeal          

Stocks

Referenced

100%
100%
0%
67%

Most Active by Volume

270,887,127
    $93.89 unch
225,243,115
  • $40.93 ▼ 2.74%
135,900,109
  • $47.52 ▲ 1.80%
89,467,924
  • $5.35 ▼ 1.11%
85,105,358
  • $16.95 ▼ 0.53%
80,748,539
  • $39.80 ▼ 4.21%
68,491,586
  • $3.57 ▼ 1.79%
62,097,356
  • $100.96 ▼ 0.82%
As of 9/19/2014, 04:15 PM

Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com