Invesco Ltd. (IVZ) reported a marginal increase in preliminary month-end assets under management (AUM) for Oct 2014. The AUM for the month came in at $790.3 billion, up 0.1% from the prior month.
The growth in AUM was attributable to favorable market returns, which were, however, almost offset by net long-term outflows, a fall in money market AUM and outflows in the PowerShares QQQ. Further, foreign exchange led to a $1.1 billion drop in AUM.
Invesco’s preliminary average total AUM for October was recorded at $778.5 billion and preliminary average active AUM at $640.9 billion.
At October end, Invesco's total equity AUM declined 0.3% from the prior month to $385.1 billion. Further, balanced AUM was $51.2 billion, down 0.6% from $51.5 billion at the end of Sep 2014. Additionally, the company’s money market AUM fell 1.7% from Sep 2014 level to $75.3 billion.
However, Invesco’s alternatives AUM came in at $98.7 billion, climbing 2.8% from the previous month. Also, fixed income AUM inched up to $180.0 billion from $179.2 billion in the prior month.
Among other investment managers, Franklin Resources Inc. (BEN) announced preliminary AUM of $898.4 billion by its subsidiaries for Oct 2014, marking a slight increase from $898.0 billion as of Sep 2014. Additionally, Legg Mason, Inc. (LM) is expected to report preliminary AUM later this week.
Invesco's high debt level and mounting expenses continue to concern us. However, a rebound in the equity market and improvement in global investment flows are expected to act as positive catalysts.
Currently, Invesco carries a Zacks Rank #3 (Hold). A better-ranked asset manager include Northstar Asset Management Group Inc. (NSAM), sporting a Zacks Rank #2 (Buy).
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