) reported a rise in its preliminary month-end assets under
management (AUM) for Jul 2013. The AUM for the month was $729.4
billion, up 3.4% from $705.6 billion at the end of Jun 2013.
Favorable market returns, increase in money market AUM and
positive long-term inflows were the primary reasons for the rise.
Additionally, foreign exchange led to a $0.9 billion increase in
In July, Invesco's preliminary active AUM was $600.8 billion, up
3.2% from the prior month. Likewise, preliminary passive AUM grew
4.0% from Jun 2013 to $128.6 billion.
At the end of July, Invesco's total equity AUM jumped 5.7% to
$339.8 billion from $321.4 billion at the end of Jun 2013.
However, fixed income AUM dropped 0.5% from the prior month to
Further, Invesco's balanced AUM rose 3.8% to $51.6 billion in
July. Its money market AUM totaled $80.6 billion, increasing 3.6%
from the previous month. Moreover, alternative AUM came in at
$85.2 billion in the reported month, rising 1.9% from the
Notably, all the figures have been adjusted by excluding Atlantic
Trust's balanced and equity AUM of $21.9 billion and $0.5
billion, respectively. The latter is to be sold to
Canadian Imperial Bank of Commerce
) for $210 million.
Among other investment managers,
Franklin Resources Inc.
) announced preliminary AUM of $834.1 billion by its subsidiaries
for July, up 2.3% from the prior month. Similarly, for
Legg Mason Inc.
) preliminary AUM was $656 billion for July, increasing 1.8% from
the last month.
We expect Invesco's cost-control initiatives to improve its
operating leverage significantly over the long term.
Additionally, meaningful capital deployment activities continue
to enhance shareholder value.
However, the volatile U.S. dollar, high debt levels and rising
expenses remain plausible concerns. Overall, Invesco is poised to
benefit from improved global investment flows, given its broad
Currently, Invesco carries a Zacks Rank #4 (Sell).
FRANKLIN RESOUR (BEN): Free Stock Analysis
CDN IMPL BK (CM): Free Stock Analysis Report
INVESCO LTD (IVZ): Free Stock Analysis Report
LEGG MASON INC (LM): Free Stock Analysis
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