Invesco’s March AUM Marginally Up (BEN) (IVZ)

Zacks

Invesco Ltd. (IVZ) announced a 0.8% rise in its preliminary month-end assets under management (AUM) for the month of March 2012. The company’s AUM for the reported month was $672.8 billion compared with $667.6 billion at the end of February 2012.

Invesco’s March AUM was mainly rewarded from favorable market returns and enhanced long-term net inflows. However, foreign exchange led to a $0.9 billion decline in the AUM during the month under review.

Also, during the reported month, Invesco realized an outflow of $1.2 billion in the alternative asset class in association with the previously disclosed liquidation of the U.S. Treasury component of the Public Private Investment Program (PPIP) fund.

Invesco’s preliminary Active AUM totaled $560.2 billion at the end of March 2012, showing a 0.4% rise from $558.1 billion in the prior month. Moreover, in the reported month, preliminary Passive AUM was $112.6 billion against $109.5 billion in February 2012.

As of March 31, 2012, Invesco’s average assets stood at $658.2 billion, while the total value of average active assets came in at $552.4 billion.

At March-end, Invesco’s total equity assets inched up 1.4% to $305.2 billion from $300.9 billion in February 2012. Similarly, the company’s total fixed income assets grew 1.1% to $155.0 billion from $153.3 billion in February 2012.

During the month, Invesco’s balanced assets summed up to $50.5 billion, slightly climbing 1.6% from the previous month. However, alternative AUM fell 1% to $87.6 billion during March from $88.5 billion in the prior month.

Further, Invesco’s money market AUM arrived at $74.5 billion (including $70.5 billion in institutional money market AUM and $4.0 billion in retail money market AUM) in March, dwindling 0.9% from $75.2 billion, recorded in February 2012.

Peer Performance

On April 10, Franklin Resources Inc. (BEN) declared its preliminary month-end AUM for March 2012. The company reported preliminary AUM of $725.7 billion for its subsidiaries, as of March 31, 2012, displaying a marginal decrease from $727.4 billion as of February 29, 2012.

Our Take

Long-term investment performance of Invesco has been improving owing to the recovering global equity market, which is further expected to boost the company’s operating results. Moreover, the operating leverage is anticipated to improve substantially over the long term due to the company’s cost control initiatives. Invesco’s broad diversification places it in a better position to benefit from enhanced global investment flows. However, the volatile U.S. dollar and mounting competition make us apprehensive.

Invesco currently retains a Zacks #1 Rank, which translates into a short-term ‘Strong Buy’ rating.

FRANKLIN RESOUR (BEN): Free Stock Analysis Report

INVESCO LTD (IVZ): Free Stock Analysis Report

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