Invesco First-Quarter Profit Rises 15% as Clients Add Money
Invesco Ltd. (IVZ), owner of the Invesco, Van Kampen and PowerShares funds, said first-quarter profit rose 15 percent as record client deposits lifted assets.
Net income increased to $222.2 million, or 49 cents a share, from $193.9 million, or 43 cents, a year earlier, Atlanta-based Invesco said today in a statement. Excluding certain items, earnings of 52 cents a share beat the 47 cents-a- share average estimate of 20 analysts in a Bloomberg survey.
Chief Executive Officer Martin Flanagan has used acquisitions to broaden Invesco’s offerings beyond traditional stock and bond mutual funds since taking over in 2005. Invesco took in a net $19.2 billion in the past three months, the most ever for a single quarter, including $8.4 billion into its active funds. Loren Starr, Invesco’s chief financial officer, said while he was pleased with client deposits in April, he expects the pace of new money to slow down this quarter.
“We certainly don’t expect to see the same pace of inflows continuing in the second quarter,” Starr said in an interview.
Invesco announced results before the start of regular U.S. trading. Its shares rose 14 percent this year through yesterday, compared with a 18 percent gain by Standard & Poor’s 20-company index for asset managers and custody banks.
Legg Mason Inc. (LM), the Baltimore-based money manager that appointed a new chief executive office in February, said today that fiscal fourth-quarter profit fell 62 percent as client withdrawals from its stock and bond funds continued.
BlackRock Inc. (BLK), the world’s largest asset manager, said April 16 its first-quarter net income rose 10 percent as the New York-based company attracted $40.5 billion in net deposits. T. Rowe Price Group Inc., based in Baltimore, on April 24 reported first-quarter revenue that increased 22 percent, helped by the best mutual-fund deposits in six years.
Invesco’s assets climbed 6 percent in the three months ended March 31 to $729.3 billion, according to preliminary figures reported by the company on April 9, matching the rally in global stocks as measured by the MSCI AC World Index.
Sixty-one percent of Invesco’s long-term mutual funds rank in the top half of their peer groups for returns over the last three years, according to research firm Morningstar Inc. (MORN)
The firm said earlier this month it had agreed to sell its Atlantic Trust Private Wealth Management unit to Canadian Imperial Bank of Commerce, Canada’s fifth-largest bank, for $210 million. Atlantic Trust manages about $20 billion for clients in 12 U.S. cities. The companies said they expect to complete the deal in the second half of 2013.
The sale will reduce Invesco’s annual earnings by about 5 cents a share, Chief Financial Officer Loren Starr said in an April 11 conference call with analysts. The company intends to use the money raised to repurchase its own stock, offsetting the dilution of earnings by 3 cents a share, Starr said.
(Invesco will hold a conference call at 9 a.m. New York time. The call-in number is +1-866-617-1526 in the U.S. and Canada, and +1-210-795-0624 elsewhere.)
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