Dec. 2, 2015, 12:05 PM
- So far this year, Vanguard is leading the way as a record $365B flows into low-cost, passively-managed index funds and ETFs, while actively-managed mutual funds have lost $147B, reports Bloomberg. That roughly $500B swing at roughly 50 basis points (the difference between active and passive fees) means $25B less going to the financial services industry.
- That $25B compares to about $200B per year globally in trading and asset management revenue, but there's also the "hidden fees" active managers rack up from continuously buying and selling - on average active mutual fund managers turn over portfolios at 10x the pace of a Vanguard index fund.
- But that's not all ... It took Vanguard 32 years to reach $1T in assets, eight to get to $2T, and just three to get to $3T. Vanguard alone could be removing $40B in revenue from the financial industry by 2020. There's also the "Vanguard Effect" in which other funds lower fees to try and compete with the giant's Wal-Mart-like "everyday low prices."
- The good news for active managers: As ETFs (passive-investing) proliferate (they now account for 30% of total assets), it should give sharp managers a little more room to actually create some alpha.
- Interested parties: BlackRock (NYSE:BLK), WisdomTree (NASDAQ:WETF), Franklin Resources (NYSE:BEN), Legg Mason (NYSE:LM), Gamco (NYSE:GBL), Janus (NYSE:JNS), Invesco (NYSE:IVZ), T. Rowe Price (NASDAQ:TROW), AllianceBernstein (NYSE:AB), Affiliated Managers (NYSE:AMG), Federated Investors (NYSE:FII), Waddell & Reed (NYSE:WDR), Artisan Partners (NYSE:APAM), Cohen & Steers (NYSE:CNS), Manning and Napier (NYSE:MN), Virtus Investment (NASDAQ:VRTS), Eaton Vance (NYSE:EV)
Nov. 10, 2015, 4:44 PM
- IVZ Oct. 31 total AUM of $791.3B rises from $755.8B one month earlier. Equity AUM of $378.8B up from $352.4B.
- Active AUM of $650.5B up from $624.1B. Passive AUM of $140.8B vs. $131.7B.
Nov. 9, 2015, 10:57 AM
- U.S.-listed ETFs and ETPs have brought in a record $174.8B in net new assets this year as of the end of October (beating the previous record in 2013 by 12.4%), according to ETFGI. October's net inflows of $28.4B marked the ninth consecutive month of gains.
- For ETFs and ETPs listed globally, net inflows through the end of October of $287.3B are up 22.3% over the same period in 2014.
- Year-to-date, BlackRock's (NYSE:BLK) iShares had the most net inflows with $72.3B, followed by Vanguard at $60B, and WisdomTree (NASDAQ:WETF) at $19.4B. Schwab (NYSE:SCHW) ETFs brought in $11B.
- In October, iShares also led the way, with Vanguard second. In third place were SPDR (NYSE:STT) ETFs, and in fourth Invesco's (NYSE:IVZ) PowerShares.
Oct. 29, 2015, 2:47 PM
- Q3 adjusted operating income of $373.4M or $0.61 per share vs. $381.9M and $0.64 one year ago.
- Ending AUM of $755.8B down 5.9% Q/Q, down 4.3% Y/Y.
- Active net outflows of $1.6B vs. $5.4B inflow in Q2, $6B inflow a year ago. Passive net outflows of $2.3B vs. $500M inflow in Q2. The $42B PowerShares QQQ saw $900M in net outflows vs. $300M of outflows in Q2. Total net outflows for the quarter were $6.3B vs. $3B of net inflows in Q2, and $2M inflows a year ago.
- Previously: Invesco misses by $0.01, misses on revenue (Oct. 29)
- IVZ -4.25%
Oct. 29, 2015, 7:21 AM
- Invesco (NYSE:IVZ): Q3 EPS of $0.61 misses by $0.01.
- Revenue of $903M (-3.6% Y/Y) misses by $3.85M.
Oct. 28, 2015, 5:30 PM
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Oct. 22, 2015, 10:18 AM
- Perhaps the bad news is priced in as sluggish earnings from Franklin Resources (up 4.6%), Janus Capital (JNS +4.3%), and T. Rowe Price (TROW +4.8%) are bought.
- BlackRock (BLK +2.5%), Legg Mason (LM +3.7%), Calamos (CLMS +2.8%), Invesco (IVZ +3.7%), Affiliated Managers (AMG +3.2%), Federated Investors (FII +2.2%), Waddell & Reed (WDR +2.3%), Artisan Partners (APAM +2.9%), Eaton Vance (EV +3.3%). The biggest mover of all today is ETF provider WisdomTree (WETF +7.8%).
- Previously: So bad it's good - Franklin Resources jumps after lame results (Oct. 22)
- Previously: AUM and earnings down at T. Rowe Price (Oct. 22)
- Previously: Assets and earnings slip at Janus (Oct. 22)
Oct. 12, 2015, 4:54 PM
Oct. 12, 2015, 11:54 AM
- BAML's Savita Subramanian figures more than 41% of active managers are beating their benchmarks this year vs. only 19% who did so in 2014. At this pace, mutual funds are on track for their best relative performance since 2009.
- It's possibly some welcome news for shops like Legg Mason (LM), Gamco (GBL +0.2%), Janus (JNS -1.1%), Invesco (IVZ -0.7%), T. Rowe Price (TROW -2%), and AllianceBernstein (AB -1.8%), at least some of whom have been losing AUM to ETFs.
Oct. 12, 2015, 10:31 AM
- Organic growth should be lackluster at best for the asset management names, says analyst Robert Lee, but Invesco (IVZ -0.9%) should be at the top of that growth list as investments in new products and distribution begin to pay off. The stock is his top pick in the sector.
- To help counter general sector weakness, investors may want to consider shorting Janus (JNS -0.5%) as that company's stock trades a potentially unjustifiable valuation premium.
- Also from KBW, AllianceBernstein (AB -1.8%) is cut to Market Perform from Outperform.
Sep. 9, 2015, 4:12 PM
- IVZ August 31 AUM of $776.4B slipped from $806.7B one month earlier, a combination of market losses, FX, and outflows from both money market funds and the PowerShares QQQs.
- Equity AUM of $369.6B vs. $396.5B, with active equity AUM of $283.8B vs. $304.4B and passive equity AUM of $85.8B vs. $92.1B.
- Fixed income AUM of $185.8B vs. $187.9B
- Money market AUM of $68.5B vs. $69.9B.
Aug. 11, 2015, 4:46 PM
- Invesco (NYSE:IVZ) end-of-July total AUM of $806.7B vs. $803.6B a month earlier. Active total AUM of $663.3B vs. $662B. Passive of $143.4B vs. $141.6B.
- Equity AUM of $396.5B vs. $394.7B. Active equity AUM of $304.4B vs. $305.3B. Passive of $92.1B vs. $89.4B.
- Fixed income AUM of $187.9B vs. $187.5B. Active of $146.8B vs. $146.3B. Passive of $41.1B vs. $41.2B.
Jul. 30, 2015, 8:38 AM
- Invesco (NYSE:IVZ): Q2 EPS of $0.63 beats by $0.01.
- Revenue of $1.32B (+2.3% Y/Y) beats by $10M.
Jul. 13, 2015, 4:32 PM
- Invesco (NYSE:IVZ) June 30 AUM of $803.6B slips from $812.4B one month earlier.
- Equity AUM of $394.7B vs. $403.6B. Active AUM of $305.3B vs. $312.9B. Passive $89.4B vs. $90.7B.
- Fixed income AUM of $187.5B vs. $185.6B. Active AUM of $146.3B vs. $143.3B. Passive $41.2B vs. $42.3B.
Jun. 17, 2015, 7:58 AM
- Expecting a pickup in deal activity to boost profit growth at Affiliated Managers (NYSE:AMG), Citi names the stock its top pick among traditional asset managers for H2. AMG replaces Invesco (NYSE:IVZ), through Citi retains a Buy rating on that stock as well.
- Invesco is flat YTD, AMG is ahead by 5.5%.
Jun. 8, 2015, 2:41 PM
- Mid-teens asset growth will continue for ETFs over the coming years, says Goldman Sachs, citing growth in ETF-favoring RIAs, 401(k) rollovers, increasing use of auto-allocation products (robo-advisors), regulatory push into lower-cost products, geographic expansion, and innovation.
- Areas in ETFs with the fastest growth rates and biggest potential include those located outside the U.S., fixed-income - which has only half the share of assets relative to mutual funds as equity ETFs have - and smart beta, which has seen 30% organic growth over the last three years.
- Stocks of interest include: BlackRock (NYSE:BLK), Invesco (NYSE:IVZ), and WisdomTree (NASDAQ:WETF).
- Source: The Reformed Broker
Invesco Ltd. is an independent global investment management firm. It provides a comprehensive range of enduring solutions for clients. Their retail products are primarily distributed through third-party financial intermediaries, including traditional broker-dealers, fund supermarkets, retirement... More
Industry: Asset Management
Country: United States
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