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Invesco's AUM Shows Marginal Rise - Analyst Blog

By: Zacks.com
Posted: 3/12/2013 1:27:00 PM
Referenced Stocks: BEN;IVZ;LAZ;LM

Invesco Ltd. ( IVZ ) recorded a marginal rise in its preliminary month-end assets under management (AUM) for Feb 2013. The AUM for the month was $713.8 billion, up 0.2% from $712.6 billion at the end of Jan 2013.

Favorable market returns as well as hike in active long-term inflows were the primary reasons for the rise. Yet, foreign exchange led to a $5.8 billion drop in AUM. At the end of the month, Invesco's average assets stood at $708.0 billion, while the total value of average active assets was $588.4 billion.

In the month under review, Invesco's preliminary active AUM was recorded at $593.0 billion, reflecting a 0.2% rise from $591.9 billion in the prior month. Similarly, preliminary passive AUM was $120.8 billion, witnessing a marginal 0.1% increase from the earlier month level.

At the end of Feb 2013, Invesco's total equity AUM dipped 0.2% to $311.3 billion from $312.0 billion recorded at the end of Jan 2013. Also, alternative AUM showed a slight decline of 0.2% from the prior month to $84.3 billion.

Nevertheless, Invesco's fixed income AUM inched up 0.3% to $174.8 billion from $174.2 billion in the preceding month. Similarly, balanced assets summed up to $66.8 billion, rising 1.7% from the previous month. Further, money market AUM came in at $76.6 billion in the reported month, improving 0.5% from the prior month's level.

Among other investment managers, Franklin Resources Inc. ( BEN ) announced preliminary AUM of $813.8 billion by its subsidiaries for Feb 2013, up 0.5% from $809.8 billion as of Jan 31, 2013. Another investment manager, Legg Mason Inc. ( LM ) is expected to announce its Feb 2013 AUM later this week.

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 apprehensive.

Currently, Invesco retains a Zacks Rank #3 (Hold). Another investment management company worth considering is Lazard Ltd. ( LAZ ), which has a Zacks Rank #1 (Strong Buy).



FRANKLIN RESOUR (BEN): Free Stock Analysis Report

INVESCO LTD (IVZ): Free Stock Analysis Report

LAZARD LTD (LAZ): Free Stock Analysis Report

LEGG MASON INC (LM): Free Stock Analysis Report

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