(Bloomberg) -- Invesco, owner of the Invesco, Perpetual and PowerShares funds, said fourth-quarter profit rose 5.6% as client assets increased.

Net income on an adjusted basis increased to $272.6 million, or 63 cents a share, from $258.1 million, or 58 cents a share a year earlier, the Atlanta-based company said in a statement on Thursday. Twenty analysts surveyed by Bloomberg had expected adjusted earnings of 62 cents a share.

Chief Executive Officer Martin Flanagan has relied on growth in the U.S. and continental Europe for much of the past year to overcome client withdrawals in the U.K. linked to the April departure of star fund manager Neil Woodford. The firm’s strength in different asset classes should allow it to overcome any short-term problems, according to Morningstar analyst Greggory Warren.

“Invesco is one of the few asset managers we cover that has solid enough equity and fixed-income franchises, allowing it to benefit from changing investor behavior over the long run,” Warren wrote in a December note on Morningstar’s website.

The Standard & Poor’s 500 Index returned 14%, including reinvested dividends, in 2014. The MSCI All-Country World Index gained 4.8%, according to data compiled by Bloomberg.

Invesco’s largest ETF, the $37.7 billion Powershares QQQ, which tracks the performance of the Nasdaq 100 Index, had estimated redemptions of $3.2 billion in the quarter.

Before today, Invesco shares fell 8 percent compared with a decline of 6.5% for the 18-member Standard & Poor’s 500 Index of money managers and custody banks.


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