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Invesco (IVZ) October AUM Rises 2.8% on Favorable Markets

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Invesco (IVZ - Free Report) announced preliminary assets under management (AUM) for October 2022. The company’s month-end AUM of $1,360.6 billion represented an increase of 2.8% from the previous month.

AUM was positively impacted by favorable market returns, which increased it by $32 billion. However, the company experienced net long-term outflows of $1.1 billion and non-management fee-earning net outflows of $2 billion. Nevertheless, money market net inflows were $9.7 billion.

Because of foreign exchange rate movements, AUM declined by $1.7 billion.

Invesco’s preliminary average total AUM in the quarter through Oct 31 was $1,345.9 billion and preliminary average active AUM summed $921.6 billion.

At the end of the reported month, the company’s Equity AUM was $626.5 billion, up 4.9% from the previous month. Alternatives AUM increased 1.2% sequentially to $188 billion.

Money Market AUM improved 5.3% from the prior-month end to $181.3 billion. Balanced AUM for October was $62.4 billion, decreasing 1.9% from the September 2022 end. Fixed Income AUM of $302.4 billion was down 1%.

Invesco’s strong global presence, solid AUM balance and initiatives to capitalize on investors’ demand for different investment strategies poise it well for growth.

However, despite the cost-saving efforts, the company’s expenses have been elevated due to its inorganic growth initiatives and investments in franchise. Higher costs will likely hurt profitability to an extent in the near term.

Over the past year, shares of Invesco have lost 38.3% compared with a decline of 25.8% of the industry.

 

Zacks Investment Research
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Currently, Invesco carries a Zacks Rank #5 (Strong Sell).

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

Competitive Landscape

Franklin Resources (BEN - Free Report) reported preliminary AUM of $1,318.4 billion for October 2022. This indicated a rise of 1.6% from the Sep 30, 2022 level.

For Franklin, the increase in the reported month’s AUM reflected the impact of positive markets, partially offset by long-term net outflows, which included the previously disclosed $2.1 billion fixed-income institutional redemption that had minimal impact on revenues.

AllianceBernstein Holding L.P.’s (AB - Free Report) AUM of $627 billion for October 2022 represented a rise of 2.3% from $613 billion recorded at the end of the prior month. AB’s AUM increase was driven by market appreciation, partially offset by net outflows in each channel.

AllianceBernstein’s global reach and solid asset balances are likely to continue to boost top-line growth.


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