Back to top

Image: Bigstock

Why is Invesco Stock Down 2.9% Despite Stable August AUM?

Read MoreHide Full Article

Shares of Invesco Ltd. (IVZ - Free Report) have declined 2.9% following the release of its assets under management (AUM) as of Aug 31, 2018. Though preliminary month-end AUM of $988 billion remained stable compared to the previous month, all its AUM segments, except Equity AUM, witnessed a fall.

While favorable market returns and non-management fee earning AUM benefitted the AUM,   net long-term outflows and decrease in balanced AUM were the downside. Moreover, foreign exchange dragged down the month’s AUM by $1.2 billion.

Invesco’s preliminary average total AUM for the quarter through Aug 31 was $986.2 billion, while preliminary average active AUM came in at $738.7 billion.

At the end of the reported month, Invesco’s Equity AUM grew 1.2% from the previous month to $464 billion. However, Balanced AUM of $57.6 billion declined 2.7% from July. Moreover, Money Market AUM was $88.7 billion, down 1% from the prior month.

Additionally, Alternatives AUM edged down 1.5% from the last month to $142.3 billion. Fixed Income AUM of $235.4 billion decreased slightly from the July 2018 level.

Invesco has been witnessing continued growth in AUM for the past few years, with the trend continuing in first-half 2018 as well. While this will drive the top line, an overall challenging operating environment seems to be dampening investor sentiment, at present.

Invesco currently carries a Zacks Rank #4 (Sell). In the past year, shares of the company have lost 29.4% compared to the industry’s decline of 2%.



You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Asset Managers

Franklin Resources (BEN - Free Report) announced preliminary AUM by its subsidiaries of $722.4 billion for August. Results display 1.5% fall from $733.7 billion recorded as of Jul 31, 2018. Net market losses and net outflows were undermining factors.

Cohen & Steers (CNS - Free Report) reported preliminary AUM of $61.3 billion as of Aug 31, 2018, up almost 1.3% from the prior-month level. Market appreciation of $910 million and net inflows of $71 million were partially offset by distributions of $207 million.

T. Rowe Price Group, Inc. (TROW - Free Report) announced preliminary assets under management (AUM) of $1.09 trillion for August 2018. Results reflect nearly 2% rise from $1.07 trillion recorded on Jul 31, 2018.

Looking for Stocks with Skyrocketing Upside?

Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.

Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.

See the pot trades we're targeting>>

Published in