Investment managers show declining assets for first quarter
Asset manager Invesco announced it would repurchase $1.5bn (€958m) in shares as earnings matched analyst estimates in a first quarter during which struggling equity markets have caused many fund managers’ assets under management to decline.
Invesco reported net profits of $155.2m in the first quarter, roughly the same as in last year’s first quarter.
The fund manager continues working toward integrating its sundry business units, including exchange-traded funds specialist PowerShares and restructuring group WL Ross, which it acquired in recent years.
Invesco chief executive officer Martin Flanagan said: “Work over the last two years to transform Invesco into an integrated worldwide investment manager with distinctive investment capabilities supported by a global operating platform continues to strengthen our competitive position.”
Assets under management for the Atlanta-based Invesco, which moved its listing to the New York Stock Exchange in December for regulatory reasons after 18 years in London, declined in the quarter from $500bn at the end of last year to about $470bn, caused by losses in global equity markets.
Invesco also had net inflows of $1.2bn, with long-term outflows of $8.4bn offset by inflows into its money market funds of $9.6bn.
Separately, mutual fund manager T. Rowe Price today reported $151.5m in net profits in the first quarter, a 6% increase over the same period last year, but fell short of analyst expectations.
Assets under management shrunk from $400bn at the end of last year to $379bn, again due to lower market valuations.
Results at T. Rowe Price were helped by an 11% increase, or $45m, in advisory revenues from last year’s first quarter.
Net inflows into its mutual funds and other managed investment portfolios—including institutional separate accounts, sub-advised funds and sponsored investment funds—totaled a record $9.7bn.
Assets under management also declined in the first quarter for Janus Capital Group, which today reported first quarter net profits of $37.4m, up from $35.6m for last year’s first quarter.
But assets under management dropped in the quarter from $206.7bn at the end of last year to $187.6bn.
The company attributed the decrease to a $17bn depreciation in market value and fund performance, long-term net outflows of $1.5bn from its funds and money market fund outflows of $0.6bn.
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