Invesco, T. Rowe Price and Affiliated Managers Group each reported record assets under management in the quarter ended June 30, with increases around 2%, while UBS reported a 6% decline in AUM attributed to a rise in the value of the Swiss franc.
Invesco's record $653.7 billion in AUM was up 1.8% from the prior quarter and up 17.2% from the year before.
In a conference call, Martin L. Flanagan, Invesco president and CEO, said his firm managed to make continued progress in a volatile and uncertain market environment, despite a decline in net inflows to $7.3 billion in the latest quarter, from $9.2 billion for the previous quarter and $13 billion for the year-earlier quarter.
Among the latest inflows, $3.8 billion went into Invesco's long-term investment strategies, with retail, institutional and high-net-worth clients adding $2.9 billion, $700 million and $200 million, respectively. The remaining $3.5 billion went into Invesco's institutional money market strategies.
Adding to Invesco's AUM totals for the latest quarter were $3.2 billion in market-related gains, down from $12.9 billion in the prior quarter, and $1.3 billion in foreign exchange translation gains, from $3.3 billion in the prior quarter.
Invesco reported net income attributable to common shareholders of $183.0 million, up 3.1% from the prior quarter and more than quadruple its year-earlier net income of $40.8 million.
Net revenue, meanwhile, came to $751.2 million, up 3.7% from the prior quarter and up 32% from the year before.
T. Rowe Price reported a record $520.9 billion in assets, up 2.2% from the prior quarter and 33% from the year before.
Net inflows for the latest quarter came to $9.8 billion, up from inflows of $5.8 billion for the prior quarter and $5.1 billion for the year-earlier quarter.
Of the latest flows, T. Rowe Price-sponsored mutual funds garnered $4.6 billion, with other investment portfolios taking in $5.2 billion — mostly from third-party financial intermediaries, according to a company news release.
The company's target-date retirement portfolios remained a magnet for investors, attracting net inflows of $2.2 billion — lifting assets in those products to $68 billion, or 21% of T. Rowe's overall mutual fund assets.
Along with record AUM, the firm also reported record quarterly net income and revenue. Net income came to $204.7 million, up 5.2% from the prior quarter and up 29% from the year before.
Revenue, meanwhile, came to $713.7 million, up 4.6% from the prior quarter and up 24% from the year before.
Affiliated Managers Group's $348.4 billion in assets under management also was a record, up 2.5% from the prior quarter and up 40% from the year before — buoyed by the holding company's continued acquisitions of new money manager affiliates.
For the latest quarter, AMG reported a record $7.5 billion in net inflows, topping inflows of $6.5 billion for the prior quarter and $283 million for the year-earlier quarter. Prior to the results, AMG's largest quarterly inflows had been the $6.6 billion the company took in for the fourth quarter of 2006.
In an AMG news release, Sean M. Healey, the firm's chairman and CEO, cited strong demand for “return-oriented strategies in global and emerging markets equities and alternative strategies” for AMG's earnings momentum. He said his team is in advanced discussions with prospective affiliates around the world.
AMG reported net income (controlling interest) of $45.5 million for the second quarter, up 16% from the prior quarter and up 81% from the prior quarter.
Revenue, meanwhile, came to $462.3 million, up 8.4% from the prior quarter and up 39% from the year-earlier quarter.
UBS Global Asset Management reported 536 billion Swiss francs ($663 billion) in assets, down 6% from both the previous quarter and previous year. A stronger franc explained nearly all of the decline; assets were up 3% in the quarter and 22.5 over a year earlier in U.S. dollar terms.
Net inflows of 1.1 billion francs were down from 5.6 billion francs the previous quarter and 3.4 billion francs a year ago. Excluding money market strategies, net inflows from third-party clients totaled 5.7 billion francs in the most recent quarter, up 21.3% from 4.7 billion francs the previous quarter.
Net equity inflows at UBS Global were 700 million francs in the quarter, compared with inflows of 5.9 billion francs for the quarter ended March 30 and inflows of 5 billion francs in the second quarter of 2010. Fixed-income inflows were 2.5 billion francs, up from 800 million francs the previous quarter and up slightly from the 2.4 billion francs a year earlier. Assets in multiasset strategies were even in the quarter, an improvement over outflows of 1.4 billion francs the previous quarter. Multiasset flows were also flat in the second quarter of 2010.
Operating income fell 10.5% to 444 million francs in the second quarter because of lower performance fees in alternative and quantitative investments and lower asset levels caused by currency movements. Operating income was down 15% from a year ago. Operating expenses declined 9.7% in the most recent quarter to 337 million francs, down 16.8% from a year ago.
Pre-tax profit was 108 million francs, down 12.9% from the previous quarter and 7.7% from a year ago.