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Invesco's (IVZ) October AUM Declines 1.5% on Net Outflows

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Invesco Ltd. (IVZ - Free Report) announced its preliminary month-end assets under management (“AUM”) for Oct 2016. The company’s AUM came in at $807.5 billion, a fall of 1.5% from $820.2 billion recorded in the prior month.

This decline stemmed from unfavorable market returns and net long-term outflows, largely driven by redemptions from a single US sub-advised client. Further, there was an unfavorable foreign exchange impact of $7.6 billion. However, these were partly offset by a rise in PowerShares QQQs and money market AUM.  

Additionally, Invesco’s preliminary average total AUM for the quarter through Oct 31 was $813.8 billion, while preliminary average active AUM was $672.2 billion.

At the end of October, Invesco’s total Equity AUM decreased 2.9% from the prior month to $354.7 billion. Further, Fixed Income AUM of $205.8 billion inched down nearly 1% from the Sep 2016 level.

In addition, Balanced AUM came in at $47.4 billion, declining 3.1% from $48.9 billion recorded in Sep 2016. Also, Alternatives AUM dipped nearly 1% from the preceding month to $120.8 billion. Nonetheless, money market AUM was recorded at $78.8 billion, up 2.1% from the prior month.

Concurrently, Invesco provided an update on its accelerated share repurchase (ASR) program. Effective Nov 4, the company entered into ASR with Bank of America, N.A – a unit of Bank of America Corporation (BAC - Free Report) – to repurchase $150 million worth of shares. The final settlement is expected to occur by the end of this year.

Apart from Invesco, another investment manager, Franklin Resources Inc. (BEN - Free Report) , declared preliminary AUM of $723 billion by its subsidiaries for Oct 2016, a 1.4% decline from the prior month. Notably, Legg Mason, Inc. (LM - Free Report) is expected to release preliminary AUM results for Oct 2016 in the coming days.

Currently, Invesco carries a Zacks Rank #3 (Hold).

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