) reported a rise in preliminary month-end assets under management
(:AUM) for May 2014. The AUM for the month was $790.1 billion, up
1.4% from $779.4 billion at the end of Apr 2014.
Net long-term inflows, positive flows in PowerShares QQQ's shares
and favorable market returns were the primary reasons behind the
improvement. However, foreign exchange led to a $0.6 billion drop
in AUM. In May, Invesco's preliminary average total AUM was $780.6
billion and preliminary average active AUM was $640.1 billion.
At May end, Invesco's total equity AUM climbed 2.1% from the prior
month to $386.4 billion. Further, balanced AUM was $51.1 billion,
up 2.6% from $49.8 billion at the end of Apr 2014.
Invesco's fixed income AUM edged up 0.7% from the prior month to
$180.3 billion. Alternative AUM came in at $95.3 billion, inching
up 0.8% from the previous month. However, the company's money
market AUM declined 1.0% from Apr 2014 level to $77.0 billion.
Among other investment managers,
Franklin Resources Inc.
) announced preliminary AUM of $908.3 billion by its subsidiaries
for May 2014, marking a 1.4% rise from $895.4 billion as of Apr
Legg Mason Inc.
) is expected to report preliminary AUM for May 2014 later this
Driven by cost-control initiatives, Invesco's operating leverage is
likely to improve significantly over the long term. Further,
rebound in the equity market and improvement in global investment
flows will act as catalysts. Even so, the company's high debt level
and rising expenses remain matters of concern.
Currently, Invesco carries a Zacks Rank #3 (Hold). A better-ranked
asset manager is
Cohen & Steers Inc.
) sporting a Zacks Rank #1 (Strong Buy).
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