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Invesco's (IVZ) February AUM Down 1.7% on Weaker Markets

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Invesco (IVZ - Free Report) announced preliminary assets under management (AUM) for February 2023. The company’s month-end AUM of $1,458 billion represented a decrease of 1.7% from the previous month.

AUM was unfavorably impacted by poor market returns, which lowered it by $22 billion. Because of foreign exchange rate movements, AUM declined $7.7 billion. On the other hand, IVZ experienced net long-term inflows of $2.6 billion and non-management fee-earning net inflows of $1.8 billion. Money market net inflows were $0.9 billion.

Invesco’s preliminary average total AUM in the quarter through Feb 28 was $1,465.3 billion and preliminary average active AUM summed $1,004.4 billion.

At the end of the reported month, the company’s Equity AUM was $673.1 billion, down 1.8% from the previous month. Alternatives AUM decreased 2.5% sequentially to $186.2 billion.

Balanced AUM for February was $68.2 billion, falling 3.7% from the January 2023-end. Fixed Income AUM of $315.6 billion was down 1.6%. On the other hand, Money Market AUM improved marginally from the prior-month end to $214.9 billion.

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 some extent.

Over the past six months, shares of Invesco have lost 4.4% against growth of 3.1% of the industry.
 

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Currently, Invesco carries a Zacks Rank #3 (Hold). 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 $1,416.5 billion for February 2023. This indicated a fall of 2.4% from the Jan 31, 2023 level.

For Franklin, the decrease in the reported month’s AUM reflected the impact of negative markets. These were partially offset by long-term net inflows, which included the previously disclosed $7.5 billion institutional mandate invested across fixed-income strategies.

Cohen & Steers (CNS - Free Report) reported preliminary AUM of $83.5 billion as of Feb 28, 2023, down 4.3% from the prior month. Market depreciation of $3.5 billion, net outflows of $118 million and distributions of $185 million led to the monthly decline.

CNS recorded total institutional accounts of $33.4 billion at the end of February 2023, falling 4.9% from the January-end level. Of the total institutional accounts, advisory accounts were $19 billion, while the rest were sub-advisory.

Closed-end funds were $11.4 billion, down 3.3% from January 2023. Also, Cohen & Steers recorded $38.7 billion in open-end funds, declining 4.2% from the prior month.


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