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Invesco's April AUM Grows 2.6%

Zacks Equity Research

Invesco Ltd. (IVZ) recorded a rise in its preliminary month-end assets under management (:AUM) for April. The AUM for the month was $748.5 billion, up 2.6% from $729.3 billion at the end of Mar 2013.

Favorable market returns as well as an increase in active and passive long-term inflows and foreign exchange were the primary reasons for the rise. Foreign exchange led to a $2.6 billion rise in AUM. At the end of April, Invesco’s average assets stood at $738.6 billion, while the total value of average active assets was $614.8 billion.

In April, Invesco’s preliminary active AUM was $621.0 billion, reflecting a 2.4% jump from the prior month. As of Apr 30, 2013, active AUM included $21.3 billion of balanced and $0.5 billion of equity AUM related to Atlantic Trust – to be sold to Canadian Imperial Bank of Commerce (CM) for $210 million. Further, preliminary passive AUM was $127.5 billion, witnessing a 3.6% increase from the earlier month level.

At the end of April, Invesco’s total equity AUM rose 2.3% to $326.7 billion from $319.5 billion recorded at the end of Mar 2013. Further, fixed income AUM increased 1.8% from the prior month to $179.1 billion.

Moreover, Invesco’s balanced AUM advanced 3.7% to $73.1 billion. Its money market AUM amounted to $81.8 billion, rising 5.1% from the previous month. Additionally, alternatives AUM came in at $87.8 billion in the reported month, rising 2.6% from the prior month’s level.

Among other investment managers, Franklin Resources Inc. (BEN) announced preliminary AUM of $847.5 billion by its subsidiaries for April, up 2.9% from the prior month. Another investment manager, Legg Mason Inc. (LM) is expected to announce preliminary AUM for April by the middle of this month.

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.

Currently, Invesco carries a Zacks Rank # 1 (Strong Buy).

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