Invesco Ltd. issued financial results for the year and three months ended Dec. 31, 2011.
“Invesco’s efforts to provide strong, long-term investment performance to our clients contributed to the third year of long-term organic growth for the firm in spite of volatile markets, particularly during the final quarter of 2011,” said Martin Flanagan, president and CEO of Invesco. “Strong investment performance led to positive net flows of $24.5 billion for the year and contributed to a 21.7% increase in adjusted earnings per share. Our efforts to enhance our business over the past year have positioned us to provide solid results in volatile markets and even stronger results should the markets further strengthen in 2012.”
Total assets under management (AUM) at Dec. 31, 2011 were $625.3 billion. At Sept. 30, the AUM was $598.4 billion, which means an increase of $26.9 billion during the fourth quarter. Total net inflows were $6.0 billion for the fourth quarter.
Net market gains led to a $20.8 billion increase in AUM during the fourth quarter, compared to a $52.2 billion decrease in the third quarter. Foreign exchange rate movements led to a $0.1 billion increase in AUM during the fourth quarter, compared to a $5.3 billion decrease in the third quarter.
The average AUM during the fourth quarter was $621.7 billion, compared to $632.7 billion for the third quarter, a 1.7% decrease. Average long-term AUM during the fourth quarter was $552.1 billion compared to $564.3 billion for the third quarter, a 2.2% decrease.
The following non-GAAP earnings were also stated to provide further transparency according to the company. Net revenues increased by $10.7 million (1.5%) to $716.8 million in the fourth quarter from $706.1 million in the third quarter. The increase was principally due to increases in performance fees and other revenue earned in the fourth quarter compared to the third quarter, offset by decreases in management fees and service distribution fees. Foreign exchange rate changes decreased fourth quarter net revenues by $6.1 million when compared to the third quarter 2011.
Mary Ann Tasoulas writes for Money Management Executive.