Back to top

Analyst Blog

Invesco Ltd. (IVZ - Analyst Report) reported an increase in its preliminary month-end assets under management (AUM) for Sep 2013. The AUM for the month was $745.5 billion, up 3.6% from $719.7 billion at the end of Aug 2013.

Favorable market returns, increase in money market AUM and positive long-term net flows primarily supported the growth. Further, foreign exchange led to a $6.1 billion increase in AUM.

In September, Invesco’s preliminary active AUM was $615.9 billion, up 3.7% from the prior month. Likewise, preliminary passive AUM rose 3.0% from Jun 2013 to $129.6 billion.

At the end of September, Invesco’s total equity AUM increased 5.7% to $353.2 billion from $334.2 billion at the end of Aug 2013. Moreover, fixed income AUM rose 1.5% from the prior month to $172.4 billion.

Invesco’s balanced AUM rose 3.5% to $53.5 billion in the reported month. The company’s money market AUM totaled $81.1 billion, rising 1.8% from the previous month. Moreover, alternative AUM came in at $85.3 billion in the reported month, increasing 1.2% from the prior-month level.

Notably, all the figures have been adjusted by excluding Atlantic Trust’s balanced AUM and equity AUM of $22.3 billion and $0.5 billion, respectively. The latter is to be sold to Canadian Imperial Bank of Commerce (CM - Snapshot Report) for $210 million.

Among other investment managers, Franklin Resources Inc. (BEN - Analyst Report) announced preliminary AUM of $844.7 billion by its subsidiaries for Sep 2013, up 12.6% from the prior month. Further, Legg Mason Inc. (LM - Analyst Report) is expected to release its preliminary AUM later this week.

Invesco’s operating leverage is expected to improve significantly over the long term due to the company’s cost-control initiatives. Additionally, meaningful capital deployment activities continue to enhance shareholder value.

However, we are concerned about the company’s high debt levels and rising expenses. Overall, Invesco is poised to benefit from improvement in global investment flows, given the company’s diversified footprint.
Currently, Invesco carries a Zacks Rank #2 (Buy).

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
ERBA DIAGNO… ERB 3.00 +3.09%
SANCHEZ ENE… SN 34.18 +2.67%
PANTRY INC PTRY 21.02 +2.09%
INTEL CORP INTC 35.15 +1.88%
PIPER JAFFR… PJC 54.54 +1.70%