) recorded a marginal rise in its preliminary month-end assets
under management (AUM) for December 2012. The AUM for the month
was $687.7 billion compared with $683.8 billion at the end of
FRANKLIN RESOUR (BEN): Free Stock Analysis
INVESCO LTD (IVZ): Free Stock Analysis Report
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Favorable market returns as well as foreign exchange were the
primary reasons for the rise. Foreign exchange led to a $0.6
billion hike in AUM. During the month, Invesco's active and
passive AUM witnessed flat long-term flows.
At the end of the month, Invesco's average assets stood at $
680.2 billion, while the total value of average active assets was
$ 566.6 billion.
In the month under review, Invesco's preliminary active AUM was
recorded at $573.7 billion, reflecting a 0.8% rise from $569.0
billion in the prior month. However, preliminary passive AUM was
$114.0 billion, down 0.7% from $114.8 billion in the earlier
At the end of December, Invesco's total equity assets inched up
1.0% to $297.4 billion from $294.5 billion recorded at the end of
November. Similarly, fixed income assets edged up 0.5% to $171.9
billion from $171.0 billion in the preceding month.
Invesco's balanced assets summed up to $62.1 billion, rising 2.6%
from the previous month. However, money market AUM came in at
$73.3 billion in the reported month, declining 0.7% from the
prior month's level of $73.8 billion. Also, alternative AUM
declined 1.2% from the prior month to $83.0 billion.
Among other asset managers,
Franklin Resources Inc.
) declared preliminary AUM of $781.8 billion by its subsidiaries
for December 2012. The company's results rose 1.7% from $768.8
billion as of Nov 30, 2012. Moreover, it increased 16.6% from
$670.3 billion as of Dec 31, 2011.
Invesco's broad diversification strategy positions it comfortably
to benefit from enhanced global investment flows. However, the
unstable U.S. dollar, volatile equity markets and a sluggish
economic recovery, along with mounting competition, make us
Invesco is expected to announce its fourth quarter 2012 results
on January 21, 2013. The earnings ESP (expected surprise
prediction) - the percentage difference between the Most Accurate
Estimate and the Zacks Consensus Estimate - for the company is
negative 2.08%. This, along with its Zacks Rank #3 (Hold),
indicates that the company is expected to miss the Zacks
Presently, we maintain a long-term Neutral recommendation on