Invesco on Thursday reported assets under management of $687.7 billion as of Dec. 31, up 0.7% from three months earlier and 10% higher than the fourth quarter 2011.
Net inflows in the fourth quarter were $1 billion, compared to $11.7 billion in the previous quarter. Long-term active investment strategies saw $1.8 billion in inflows with money market strategies adding another $100 million in the latest quarter, while long-term outflows from passive strategies totaled $900 million, related to the maturity of a $1.6 billion CDO investment, according to an earnings statement from Invesco.
Net market gains added $4.9 billion to AUM in the fourth quarter, compared to a $22.1 billion increase in the third quarter.
“We continue to see positive net flows in our actively managed capabilities, with strong broad flows across asset allocation capabilities, real estate, alternative fixed income and a number of others,” Martin Flanagan, president and CEO, said in an earnings call with analysts Thursday. “Offsetting this positive trend was the uncertainty in the U.S. regarding the situation at Washington, which resulted in higher retention rates as investors awaited outcomes from the fiscal cliff discussions.”
For the quarter, Invesco reported net income, under generally accepted accounting principles, attributable to common shareholders of $158.7 million, down 7% from the prior quarter and 21.6% below a year earlier.
Revenue, meanwhile, came to $1.093 billion, up 4.9% from the prior quarter and 9.6% higher than 12 months earlier.
Daniel Fannon, analyst at Jefferies & Co., said in a note to clients Thursday that Invesco’s flows into balanced and fixed-income funds were better than expected, at $3.9 billion and $3.4 billion, respectively, while outflows of $5.7 billion from equity funds were higher than forecast.