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Invesco's August AUM Hit by Stronger Dollar & Weak Markets

Invesco Ltd. 's IVZ preliminary month-end assets under management ("AUM") came in at $776.4 billion for Aug 2015, reflecting a decrease of 3.8% from the prior month. The fall in AUM was triggered by unfavorable market returns and foreign exchange, along with outflows from money market funds as well as PowerShares QQQ.

While foreign exchange led to a fall of $1.9 billion in AUM, long-term net outflows remained flat on a sequential basis during the month. Further, Invesco's preliminary average total AUM for the quarter through Aug 31 was $799.8 billion, while preliminary average active AUM stood at $659.0 billion.

At August-end, Invesco's total Equity AUM fell 6.8% from the prior month to $369.6 billion. Fixed Income AUM came in at $185.8 billion, down from $187.9 billion at the end of Jul 2015. Further, Invesco's money market AUM was recorded at $68.5 billion, down 1.9% from the preceding month.

Balanced AUM came in at $51.9 billion, down from $52.9 billion recorded in Jul 2015. However, Alternatives AUM inched up 1% from the previous month to $100.6 billion.

Invesco had earlier noted that it anticipates AUM growth to experience pressure due to strengthening of the U.S. dollar. Moreover, weakness in equity market during the month negatively impacted the AUM.

Notably, both these trends have continued into September. As a result, Invesco is expected to witness a further fall in AUM in the third quarter. This, in turn, will likely keep revenue growth subdued on a sequential basis.

Apart from Invesco, another investment manager like Franklin Resources Inc. BEN declared preliminary AUM of $806 billion by its subsidiaries for Aug 2015, a 5.7% decline from the prior month.

Currently, Invesco carries a Zacks Rank #3 (Hold). America First Multifamily Investors, L.P. ATAX and Lazard Ltd. LAZ are better-ranked asset managers, both holding a Zacks Rank #2 (Buy).

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INVESCO LTD (IVZ): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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