Invesco, an Atlanta-based money manager, experienced a fourth-quarter loss due to asset impairments. However, the company’s operating earnings exceeded Wall Street’s predictions, driven by a significant increase in assets under management.
For the quarter ended on December 31, Invesco reported a loss of $683.1 million, or $1.64 per share, contrasting with a profit of $190.6 million, or 29 cents per share, during the same period the previous year. After excluding items such as impairments related to acquiring certain mutual funds, Invesco’s fourth-quarter earnings stood at 47 cents per share. This surpassed the average analyst estimate of 40 cents per share, as reported by FactSet.
While revenue declined by 2% to $1.41 billion, which was slightly below Wall Street’s average target of $1.11 billion according to FactSet, there was a notable increase in assets under management. As of December 31, the company’s assets under management reached $1.585 trillion, representing a growth of 6.6%. Furthermore, Invesco estimated that there were net long-term inflows totaling $6.7 billion.
The global bull market in equities has contributed to investment managers benefitting from increased deposit activity by investors, both in terms of existing assets and new funds.
