Invesco on Thursday reported assets under management of $802.4 billion as of June 30, up 1.9% from the end of the previous quarter and up 13.7% from a year earlier.
Net outflows for the second quarter were $8.8 billion, which includes a single client withdrawal of $13.1 billion during the quarter from St. James's Place, a U.K. wealth manager. That compared to net outflows of $900 million during the quarter ended March 31 and net inflows of $1.4 billion during the second quarter of 2013.
Market gains led to a $19.9 billion increase in AUM during the second quarter. Also, foreign exchange rate movements led to a $4 billion increase in AUM.
Invesco's PowerShares exchange-traded funds business saw net outflows of $3 billion for the quarter vs. net outflows of $1.3 billion for the previous quarter and net inflows of $700 million in the second quarter of 2013.
Long-term passive strategies had net inflows of $1.1 billion for the quarter, compared to net inflows of $3.3 billion for the first quarter of 2014 and net inflows of $1.3 billion for the quarter ended June 30, 2013. Meanwhile, long-term active investment strategies saw net outflows of $8 billion for the quarter ended June 30, compared to net inflows of $3.3 billion for the previous quarter and net inflows of $100 million for the same period the year before.
Outflows to long-term strategies were partially offset by net inflows of $1.1 billion for the quarter in Invesco's money market business, compared to net outflows of $6.1 billion last quarter and net outflows of $700 million during the second quarter of 2013.
Net income in the latest quarter was $274.5 million, a 46.2% increase from the previous quarter and up 35.5% from the second quarter a year ago. Net revenue, meanwhile, reached $901 million for the second quarter, up 1.5% from the previous quarter and a 14% increase from the year before.
“We continue to be more positive than negative on Invesco's stock,” wrote Christopher Shutler, equity research analyst at William Blair & Co. in a note to clients. “Investment performance generally remains solid and we like the diversified nature of the platform, Invesco's exposure to alternatives and ETFs, and management's focus on returning capital to shareholders.”
