Invesco Ltd. (IVZ) recorded a rise in its preliminary month-end assets under management (:AUM) for Jan 2013. The AUM for the month was $712.6 billion compared with $687.7 billion at the end of Dec 2012.
Favorable market returns as well as surge in both active and passive long-term inflows were the primary reasons for the rise. Yet, foreign exchange led to a $3.0 billion drop in AUM. At the end of the month, Invesco’s average assets stood at $703.4 billion, while the total value of average active assets was $584.7 billion.
In the month under review, Invesco’s preliminary active AUM was recorded at $591.9 billion, reflecting a 3.2% rise from $573.7 billion in the prior month. Similarly, preliminary passive AUM was $120.7 billion, increasing 5.9% from $114.0 billion in the earlier month.
At the end of Jan 2013, Invesco’s total equity assets surged 4.9% to $312.0 billion from $297.4 billion recorded at the end of Dec 2012. Also, fixed income assets edged up 1.3% to $174.2 billion from $171.9 billion in the preceding month.
Invesco’s balanced assets summed up to $65.7 billion, rising 5.8% from the previous month. Further, money market AUM came in at $76.2 billion in the reported month, improving 4.0% from the prior month’s level of $73.3 billion. Moreover, alternative AUM grew 1.8% from the prior month to $84.5 billion.
Among other investment managers, Franklin Resources Inc. (BEN) announced preliminary AUM of $809.8 billion by its subsidiaries for Jan 31, 2013. This showed a 3.6% rise from $781.8 billion as of Dec 31, 2012 and 15.0% jump from $704.3 billion as of Jan 31, 2012.
Likewise, Legg Mason Inc. (LM) reported a slight rise in its AUM in Jan 2013, compared with the prior month. Preliminary quarter-end AUM came in at $654.1 billion, up 0.8% compared with the prior month. Fixed Income AUM was down in the month under review, though liquidity AUM and Equity AUM advanced.
Invesco’s broad diversification strategy positions it comfortably to benefit from enhanced global investment flows. However, the unstable U.S. dollar, volatile equity markets and a sluggish economic recovery, along with mounting competition, make us apprehensive.
Currently, Invesco retains a Zacks Rank #3 (Hold). Another investment management company worth considering is Lazard Ltd. (LAZ), which has a Zacks Rank #1 (Strong Buy).
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