Invesco's December AUM Ups Slightly - Analyst Blog

Invesco Ltd. ( IVZ ) recorded a marginal rise in its preliminary month-end assets under management (AUM) for December 2012. The AUM for the month was $687.7 billion compared with $683.8 billion at the end of November.

Favorable market returns as well as foreign exchange were the primary reasons for the rise. Foreign exchange led to a $0.6 billion hike in AUM. During the month, Invesco's active and passive AUM witnessed flat long-term flows.

At the end of the month, Invesco's average assets stood at $ 680.2 billion, while the total value of average active assets was $ 566.6 billion.

In the month under review, Invesco's preliminary active AUM was recorded at $573.7 billion, reflecting a 0.8% rise from $569.0 billion in the prior month. However, preliminary passive AUM was $114.0 billion, down 0.7% from $114.8 billion in the earlier month.

At the end of December, Invesco's total equity assets inched up 1.0% to $297.4 billion from $294.5 billion recorded at the end of November. Similarly, fixed income assets edged up 0.5% to $171.9 billion from $171.0 billion in the preceding month.

Invesco's balanced assets summed up to $62.1 billion, rising 2.6% from the previous month. However, money market AUM came in at $73.3 billion in the reported month, declining 0.7% from the prior month's level of $73.8 billion. Also, alternative AUM declined 1.2% from the prior month to $83.0 billion.

Among other asset managers, Franklin Resources Inc. ( BEN ) declared preliminary AUM of $781.8 billion by its subsidiaries for December 2012. The company's results rose 1.7% from $768.8 billion as of Nov 30, 2012. Moreover, it increased 16.6% from $670.3 billion as of Dec 31, 2011.

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.

Invesco is expected to announce its fourth quarter 2012 results on January 21, 2013. The earnings ESP (expected surprise prediction) - the percentage difference between the Most Accurate Estimate and the Zacks Consensus Estimate - for the company is negative 2.08%. This, along with its Zacks Rank #3 (Hold), indicates that the company is expected to miss the Zacks Consensus Estimate.

Presently, we maintain a long-term Neutral recommendation on Invesco.

FRANKLIN RESOUR (BEN): Free Stock Analysis Report

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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