ATLANTA - Invesco Ltd . (NYSE:IVZ), a global investment management firm, has announced a marginal decrease in its assets under management (AUM) for the end of December, totaling $1,846.0 billion. This figure represents a 0.6% reduction from the previous month's AUM. Despite the overall drop, Invesco experienced net long-term inflows amounting to $12.6 billion during the month. The company, currently trading at $16.42, appears undervalued according to InvestingPro analysis, with strong financial health indicators including a healthy current ratio of 4.42.
The company's AUM faced headwinds from unfavorable market returns, which led to a $42 billion decline. Additionally, foreign exchange movements contributed to a $7.0 billion reduction in AUM. However, these decreases were partially offset by reinvested distributions that added $12.4 billion. InvestingPro data reveals that Invesco has maintained dividend payments for 18 consecutive years, with a current attractive dividend yield of 5.01%.
Invesco's preliminary average total AUM for the quarter ending December 31 stood at $1,824.4 billion, with active AUM for the same period at $1,024.4 billion. The firm's ETFs and Index Strategies remained a significant component of its portfolio, although it saw a decrease from November's $491.5 billion to December's $484.0 billion. Fundamental Fixed Income, Fundamental Equities, and Private Markets also experienced declines in AUM.
The firm's Global Liquidity funds, which include money market funds, reported net inflows of $12.0 billion, while non-management fee earning net inflows were $1.3 billion for the month. The QQQ, one of Invesco's notable ETF offerings, saw a slight increase in AUM from $316.6 billion in November to $318.9 billion at the end of December. According to InvestingPro, six analysts have revised their earnings upwards for the upcoming period, suggesting positive momentum. Subscribers can access over 30 additional financial metrics and insights in the comprehensive Pro Research Report.
Invesco operates as an independent investment management company and offers a range of active, passive, and alternative investment capabilities. With offices in over 20 countries, the firm aims to provide an investment experience that enhances the financial prospects of its clients. The company's financial strength is evident in its ability to cover interest payments with cash flows, while analysts expect improved profitability in the current year.
This financial update is based on a press release statement from Invesco Ltd. and reflects the company's performance as of the end of December.
In other recent news, Invesco Ltd. reported a slight decrease in its assets under management (AUM) for October, dropping to $1.77 trillion, a 1.3% decrease from September. Despite this, the company noted net long-term inflows of $2.0 billion for the month. The company's earnings call highlighted a record AUM of $1.8 trillion in the third quarter of 2023, a 5% increase from the previous quarter, and net long-term inflows of $16.5 billion.
Invesco's adjusted diluted earnings per share (EPS) rose to $0.44, and the firm maintained a strong balance sheet with zero net debt. Share buybacks resumed with $25 million returned to shareholders. The company also mentioned ongoing discussions with MassMutual regarding potential buyback of preferred shares.
These recent developments include a strategic focus on partnerships, particularly with MassMutual, for opportunities in model portfolios and sub-advised products. The company also anticipates the completion of the Indian joint venture by Q1 2024. Despite some challenges such as outflows in fundamental equity strategies, Invesco remains focused on driving profitable growth and enhancing shareholder returns.
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