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Invesco's May AUM Increases - Analyst Blog

Posted: 6/12/2013 10:27:00 AM
Referenced Stocks: BEN;CM;IVZ;LM

Invesco Ltd . ( IVZ ) recorded a rise in its preliminary month-end assets under management (AUM) for May. The AUM for the month was $751.8 billion, up 0.4% from $748.5 billion at the end of Apr 2013.

Favorable market returns and a moderately positive escalation in active and passive long-term inflows were the primary reasons for the rise. However, foreign exchange led to a $4.7 billion decline in AUM. At the end of May, Invesco's average assets stood at $745.6 billion, while the total value of average active assets was $619.1 billion.

In May, Invesco's preliminary active AUM was $622.6 billion, reflecting a 0.3% jump from the prior month. As of May 31, 2013, active AUM included $21.7 billion of balanced and $0.5 billion of equity AUM related to Atlantic Trust - to be sold to Canadian Imperial Bank of Commerce ( CM ) for $210 million. Further, preliminary passive AUM was $129.2 billion, witnessing a 1.3% increase from the prior-month level.

At May end, Invesco's total equity AUM rose 1.3% to $331.1 billion from $326.7 billion recorded at the end of Apr 2013. However, fixed income AUM decreased 0.6% from the prior month to $178.0 billion.

Moreover, Invesco's balanced AUM advanced 0.5% to $73.5 billion. Its money market AUM amounted to $82.7 billion, rising 1.1% from the previous month. However, alternatives AUM came in at $86.5 billion in the reported month, falling 1.5% from the prior-month level.

Among other investment managers, Franklin Resources Inc . ( BEN ) announced preliminary AUM of $846.5 billion by its subsidiaries for May, down 0.1% from the prior month. Another investment manager Legg Mason Inc . ( LM ) is expected to announce preliminary AUM for May by the middle of this month.

Invesco is comfortably positioned due to its broad diversification strategy. Owing to this, the company will benefit from enhanced global investment flows. However, the unstable U.S. dollar, volatile capital market and a sluggish economic recovery, along with stiff competition, remain concerns.

Currently, Invesco carries a Zacks Rank # 2 (Buy).

FRANKLIN RESOUR (BEN): Free Stock Analysis Report

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INVESCO LTD (IVZ): Free Stock Analysis Report

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