Invesco Profit Rises 32% as Stock Markets Help Boost Assets
Invesco Ltd. (IVZ), owner of the Invesco and PowerShares funds, said second-quarter profit rose 32 percent as equity market gains boosted assets and the fees charged for overseeing them.
Net income increased to $202.6 million, or 45 cents a share, from $153.9 million, or 34 cents, a year earlier, Atlanta-based Invesco said today in a statement. Excluding certain items, adjusted earnings of 50 cents a share missed the average estimate of 51 cents in a Bloomberg survey of 21 analysts.
“Invesco’s flow prospects remain healthy reflecting favorable asset positioning, strong investment performance track records and a broadening distribution footprint,” Michael Kim, an analyst with Sandler O’Neill & Partners LP in New York, wrote in a research note before the results were released.
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’s assets climbed 12 percent in the 12 months ended June 30 to $705.6 billion, according to preliminary figures reported by the company on July 10. The Standard & Poor’s 500 Index advanced 18 percent in the same period, and the MSCI All Country World Index rose 14 percent.
Assets under management excludes money managed by Atlantic Trust Private Wealth Management, the unit Invesco agreed in April to sell to Canadian Imperial Bank of Commerce, Canada’s fifth-largest bank, for $210 million. Atlantic Trust managed $21.7 billion as of June 30. The companies said at the time they expect to complete the deal in the second half of 2013.
Invesco announced results before the start of regular U.S. trading. Its shares rose 24 percent this year through yesterday, compared with a 29 percent gain by Standard & Poor’s 20-company index for asset managers and custody banks.
BlackRock Inc. (BLK), the world’s largest asset manager, said July 18 its second-quarter net income rose 32 percent to $729 million as investors deposited a net $11.9 billion in the New York-based company’s funds, driven by multiasset products and index funds. T. Rowe Price Group Inc. missed analysts’ estimates July 24 after institutional clients led a record $8 billion in withdrawals in the quarter. The Baltimore-based money manager said net income increased 20 percent to $245.8 million.
(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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