Invesco Ltd. (IVZ) reported a slight rise in its preliminary month-end assets under management (AUM) for Nov 2013. The AUM for the month was $767.3 billion, up from $763.9 billion at the end of Oct 2013.
Favorable market returns and positive long-term net flows primarily aided the growth. Moreover, foreign exchange led to a $1.1 billion increase in AUM. In November, Invesco’s preliminary average AUM was $757.2 billion and preliminary average active AUM was $624.4 billion.
At the end of November, Invesco’s total equity AUM increased 2.2% to $374.3 billion from $366.2 billion at the end of Oct 2013. However, fixed income AUM slipped marginally from the prior month to $173.2 billion.
Invesco’s balanced AUM was $54.0 billion, in line with prior-quarter figure. The company’s money market AUM totaled $78.4 billion, down 3.9% from the previous month. Also, alternative AUM came in at $87.4 billion in the reported month, decreasing by almost 1.0% from the prior-month level.
Notably, all the figures have been adjusted by excluding Atlantic Trust’s balanced AUM and equity AUM of $23.2 billion and $0.6 billion, respectively. The latter is to be sold to Canadian Imperial Bank of Commerce (CM) for $210 million.
Among other investment managers, Franklin Resources Inc. (BEN) announced preliminary AUM of $870.6 billion by its subsidiaries for Nov 2013, up slightly from $869.0 billion as of Oct 31, 2013 and rising 13.2% from $768.8 billion as of Nov 30, 2012. Further, Legg Mason Inc. (LM) is expected to release its preliminary AUM later this week.
Invesco’s operating leverage will likely improve significantly over the long term due to the company’s cost-control initiatives. Further, the rebound in the equity market will act as a catalyst.
However, the company’s high debt levels and rising expenses remain concerns. Nevertheless, given Invesco’s diversified footprint, it is poised to benefit from improvement in global investment flows.
Currently, Invesco carries a Zacks Rank #3 (Hold).
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