Invesco AUM Solid Despite Market Volatility

Even with the market turmoil, Invesco's AUM increased 2% during the second quarter

Greggory Warren, CFA 27 July, 2011 | 4:53PM
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Despite the volatility in the equity markets during the second quarter, Invesco (IVZ) posted a nearly 2% sequential gain in assets under management, aided by more than $7 billion in net inflows. At more than $650 billion, Invesco's AUM was 17% higher than it was at the end of the second quarter of 2010, a period that included the addition of $115 billion in managed assets from the Van Kampen deal. While Invesco did not report any merger-related outflows during the second quarter of 2011, close to half its inflows came from institutional money market funds--making it the second quarter in a row that Invesco has seen strong flows into its cash-management business, which tends to generate much lower fees and is not as sticky as its more long-term offerings. Much as we've seen over the past two years, Invesco saw net redemptions from its equity funds (of around $3 billion during the second quarter) augmented by solid inflows (of around $4 billion) into its fixed-income franchise. In a market cycle that has been characterised by significant outflows from equity funds and even more significant inflows into fixed-income funds, Invesco continues to keep the outflows to a minimum, thanks to the long-term strength of its equity franchise, while picking up any new business it can get its hands on, from fixed income to alternatives and cash management.

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Greggory Warren, CFA  Greggory Warren, CFA, is a senior stock analyst with Morningstar.

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