Invesco's (IVZ) July AUM Inches Down, Hit by Negative Forex

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Invesco Ltd. (IVZ) reported a fall in preliminary month-end assets under management (AUM.TO) for Jul 2014. The AUM for the month was $798.8 billion, marginally down from $802.4 billion at the end of Jun 2014.

During the month, positive net long-term flows were more than offset by negative foreign exchange, unfavorable market returns and a decline in money market AUM. Foreign exchange led to a $2.6 billion drop in AUM. In July, Invesco’s preliminary average total AUM was recorded at $803.1 billion and preliminary average active AUM was at $656.1 billion.

At July end, Invesco's total equity AUM declined 0.6% from the prior month to $391.8 billion. Further, balanced AUM was $52.2 billion, down 0.8% from $52.6 billion at the end of Jun 2014.

Invesco’s fixed income AUM edged down 0.5% from the prior month to $181.0 billion. However, alternative AUM came in at $97.5 billion, inching up 0.9% from the previous month. The company’s money market AUM declined 1% from Jun 2014 level to $76.3 billion.

Among other investment managers, Franklin Resources Inc. (BEN) announced preliminary AUM of $907.9 billion by its subsidiaries for Jul 2014, marking a 1.4% decline from $920.5 billion as of Jun 2014.

The company's high debt level and rising expenses remain matters of concern. However, rebound in the equity market and improvement in global investment flows is expected to act as positive catalysts.

Currently, Invesco carries a Zacks Rank #2 (Buy). Two better-ranked asset managers include Cohen & Steers Inc. (CNS) and AllianceBernstein Holding L.P. (AB), both sporting a Zacks Rank #1 (Strong Buy).

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