Money managers that on Thursday reported assets under management as of Dec. 31 saw increases ranging from 2% to 5.4% from three months earlier.
Franklin Resources reported $670.7 billion in assets under management for the three months ended Dec. 31, the company's first quarter, on the strength of market gains.
Assets are up 4% from Sept. 30 and 21% above the end of 2009, according to the company's earning statement Thursday.
The company reported net new inflows of $3.2 billion in the latest quarter, down from $19.4 billion three months earlier and $14.3 billion in the quarter ended Dec. 31, 2009.
Franklin reported last month that one institutional client had redeemed a $12 billion investment in November, which would have an impact on its inflows for the quarter ended Dec. 31. Total inflows would have been $15.4 billion for that quarter if the $12 billion redemption had been excluded, said company spokesman Matt Walsh in an interview. Mr. Walsh would not name the client.
Net income for the latest quarter was $501.2 million, compared with $372.9 million as of Sept. 30 and $355.6 million at the end of 2009.
Invesco on Thursday reported $616.5 billion in assets under management as of Dec. 31, up 2% from the prior quarter and up 34% from the year before, helped by the firm's June acquisition of Morgan Stanley's retail money management business.
For the latest quarter, Invesco reported net long-term outflows of $17 billion, partly due to the previously announced loss of an $18.6 billion passive institutional mandate that had come to Invesco as part of the Morgan Stanley deal.
However, market and investment-related gains of $24.2 billion and the Dec. 31 acquisition of the Asian money management business of AIG Global Real Estate Investment left Invesco with a $12 billion gain in assets from the prior quarter.
By asset class, Invesco reported $299.1 billion in equity AUM, up 1.6% from the prior quarter as market and investment gains of $28.2 billion outpaced net long-term outflows of $24.2 billion. Fixed-income AUM, meanwhile, dropped 3% to $126.9 billion, as market losses of $8.4 billion were almost double the net inflows of $4.4 billion. Among other asset classes, alternatives AUM jumped 16% to $78.7 billion, helped by net inflows of $2.2 billion, $3 billion in market gains and the acquisition of another $5.4 billion through the AIG Asian deal.
Net income for the quarter came to $175.2 million, up 13% from the prior quarter and 58% higher than the year before. Operating revenue, meanwhile, came to $1.03 billion, up 7.9% from the prior quarter and up 38% from the year before.
In a conference call, Martin L. Flanagan, president and CEO, said Invesco's global reach leaves the firm well positioned to prosper in growing markets in Europe and Asia, as well as in the U.S., where retail investors are starting to move back into equities.
Janus Capital Group reported $169.5 billion in assets under management in the fourth quarter, up 5.4% from the previous quarter and 6.1% above the previous year.
According to the company's earnings statement issued on Thursday, $13.5 billon in net market appreciation for the quarter helped offset net outflows of $4.7 billion, an increase from third-quarter outflows of $2.9 billion.
Janus noted that the fourth-quarter outflows were “heavily influenced” by a $2.6 billion redemption by an institutional client from INTECH, its quantitative investment division. The name of the client wasn't released.
In a conference call with investors Thursday morning, Richard Weil, Janus CEO, said a problem facing INTECH is that “the investing community has become disenchanted with quantitative and mathematical strategies over the last year or so, and that simply has to heal. That's taking some time.”
Higher fees helped spur the company's overall net income in the fourth quarter to $69.5 million, compared with $32.5 million in the third quarter and $37 million in the fourth quarter 2009.