Seeking Alpha

Invesco Ltd. (IVZ)

  • May 20, 2014, 5:38 PM
    • Top gainers, as of 5:15 p.m.: STAR +11.8%. HERO +7.3%. DFS +4.4%. UVXY +1.7%. ITMN +1.6%.
    • Top losers, as of 5:15 p.m.: IVZ -5.1%. PVCT -3.7%. INTU -3.5%. RMBS -2.8%. [[DNOWw]] -2.6%.
    | 1 Comment
  • May 15, 2014, 4:48 PM
    • BlackRock (BLK), says analyst Brian Bedell. starting the stock with a Buy and $358 price target, is best positioned among the large-cap asset managers and has three catalysts over the next year: 1) Rising organic growth, 2) Continued strong execution, 3) The likelihood the company will not be judged a SIFI by regulators.
    • T. Rowe Price - also a Buy and with $93 price target - catalysts: 1) Inflection to improved inflows after a rough 2013, 2) Continued traction in target date funds, 3) Continued margin improvement.
    • Invesco (IVZ) rates only a Hold and $39 price target, with Bedell saying the risk of elevated outflows in Europe could weigh on the shares and provide a better entry point.
    • Also rated a Buy is Affiliated Managers Group (AMG).
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  • May 1, 2014, 7:39 AM
    • Invesco (IVZ): Q1 EPS of $0.60 beats by $0.05.
    • Revenue of $1.27B (+14.4% Y/Y) beats by $10M.
    • Press Release
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  • Apr. 14, 2014, 11:12 AM
    • A check of some mutual fund managers after TIAA-CREF agrees to buy Nuveen for $6.5B find Janus (JNS +2.9%), Invesco (IVZ +1.2%), Affiliated Managers (AMG +1.4%), and Federated Investors all posting gains. Acquisitions in this industry don't happen too often as key assets - star fund managers - can pick up and leave pretty much when they choose.
    • Top tick? Nuveen's P-E owner Madison Dearborn purchased the company for $6.3B in June 2007. TIAA-CREF chief Roger Ferguson's purchase today takes Madison out at near breakeven.
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  • Apr. 11, 2014, 12:46 PM
    • Extrapolating JPMorgan's Q1 results to some other banks, KBW sees a modest positive "read-across" to Citigroup (C -0.6%) and a neutral to Goldman Sachs (GS -1.6%) and Morgan Stanley (MS -1.6%).
    • As for JPMorgan's results in asset management, KBW says a 9% Q/Q drop in revenues provides a "modestly disappointing," but not "a significant negative" read-across for peers. The team's favorites in the sector remain Affiliated Managers (AMG -0.7%), Invesco (IVZ -0.3%), and BlackRock (BLK -0.1%).
    • JPMorgan earnings coverage
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  • Apr. 10, 2014, 3:21 PM
    • The latest data from Invesco (IVZ -2.1%) suggests U.K.-related attrition is manageable and no major increase in retail redemptions have taken place, says Citi's William Katz, maintaining his Buy rating and $47 price target.
    • At Artisan Partners Asset Mangement (APAM -8.1%), however, inflows appear to have disappeared, leaving the firm with small outflows. "We suspect the acceleration in U.S. Value outflows may be related to a lumpy mandate loss while we are encouraged by the initial disclosure of assets for High Yield," says Katz, maintaining his Buy rating and $72 price target.
    • Taken together, and adding in figures from Franklin Resources (BEN -2.2%), "point(s) to uninspiring equities flows, which likely suggest tough(er) flow backdrop for the industry at large." Standing out, says Katz, may be Waddell & Reed (WDR -3.7%) which announced $3.5B in inflows QTD back in early March.
    • Others: Gamco Investors (GBL -3.1%), Calamos (CLMS -0.6%), Janus (JNS -2.5%), T. Rowe Price (TROW -2.2%), AllianceBernstein (AB -1.9%), Affiliated Managers (AMG -5%), Federated Investors (FII -1.5%).
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  • Mar. 26, 2014, 10:29 AM
    • In a nice win for money-market fund providers like BlackRock (BLK +1.2%), Federated Investors (FII +4.3%), Invesco (IVZ +0.8%), Legg Mason (LM +2.5%), and Schwab (SCHW +1.1%), there's been a change of heart at the SEC regarding floating asset values.
    • The WSJ's Andrew Ackman reports the commission will exempt a majority of funds from a rule requiring them to abandon their $1 share price and float in value like any other mutual fund. Supporters of the rule argue the float would get investors used to their funds "breaking the buck," and thus prevent panicky withdrawals in a crisis. The fund companies have fought hard against the proposal.
    • It's also a blow to other regulators, including the Fed, who wanted to expand the floating value idea to more funds, including those catering to retail investors.
    • Citi's William Katz on the report: "We believe the trust accounts and non-trading desk liquidity instruments might also get exempt, leaving loosely about $20B in AUM exposure to deeper reform risk. We believe such AUM is far lower than ~15% short interest currently bakes in, setting the stage for a significant short squeeze."
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  • Mar. 19, 2014, 10:36 AM
    • Expectations of $2B-$5B of quarterly inflows "leave little room for error" for WisdomTree (WETF -6.4%), says Citi's William Katz, who cut the stock to a Sell this morning. Stripping out the spectacular (and likely unrepeatable) success of the Japan Hedged Equity Fund, WisdomTree has hit this range just once in the last two years.
    • There are better values in asset management elsewhere, says Katz, noting double-digit organic growth at Waddell and Reed (WDR -0.5%) and Artisan Partners (APAM -0.8%), but at far lower P/Es than WisdomTree's 39x. Then there's Invesco (IVZ -0.5%) - which runs PowerShares ETFs - enjoying margins nearly as large as WETF, but with a P/E ratio more than 50% smaller.
    • Is WisdomTree - the only "pure play" ETF stock - deserving of a buyout premium? Maybe not, suggests Katz, noting insider selling, continued heavy investment in the business, and acquirers more interested in "seeking de novo growth in the passive arena."
    • Earlier coverage
  • Feb. 19, 2014, 12:51 PM
    • Invesco (IVZ) PowerShares announced that it will be shutting down 4 ETFs that had failed to gain traction in order to make way for new funds.
    • The PowerShares KBW International Financial Portfolio (KBWX), MENA Frontier Countries Portfolio (PMNA), Dynamic MagniQuant Portfolio (PIQ) and Lux Nanotech Portfolio (PXN) will all close at the end of trading today.
    • In totally these ETFs each had at least 3 years of trading, with PXN launching in 2005, but together had only $67 million in total assets.
    • Related ETFs:  PDP, QUAL, PWO, SIZE, IPF, IXG, AXFN, GAF
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  • Feb. 18, 2014, 1:59 PM
    • Invesco's (IVZ) ETF manager, PowerShares Capital Management LLC, is running with the success of the BuyBack Achievers Portfolio (PKW) and is launching its global counterpart at the end of February.
    • The International BuyBack Achievers Portfolio (IPKW) will provide access to global corporations that have effected a net reduction in shares outstanding of 5% or more in the trailing 12 months.
    • In a press release, Lorraine Wang, Invesco PowerShares global head of ETF products and research stated: "Our U.S.-focused flagship, PKW, has achieved a competitive long-term track record demonstrating the investment merit of the BuyBack Achievers methodology, and more broadly of smart beta. IPKW expands the range of tools investors can use to efficiently allocate the BuyBack achievers strategy across the globe."
    • Other buyback ETFs: SYLD, FYLD
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  • Jan. 30, 2014, 1:30 PM
    • "In risk-on environments, clients shift demand toward equities," Invesco (IVZ +1.6%) CEO Martin Flanagan tells reporters after an earnings beat this morning. "This is exactly what we experienced."
    • Adjusted revenues of $857.3M gained 17.3% from a year ago and operating income of $347.2M was up 34.5%.
    • AUM ended the year at $778.7B, up 16.7% from the end of 2012. Market gains helped, but there were net inflows as well - $34.4B for the year. The PowerShares QQQ fund added $2.6B in new money.
    • "When you look at the big, core publicly traded asset management firms, they're doing the best on flows" over the past two years, says Bernstein's Luke Montgomery.
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  • Jan. 30, 2014, 7:34 AM
    • Invesco Ltd. (IVZ): Q4 EPS of $0.58 beats by $0.01.
    • Revenue of $857.3M (-21.3% Y/Y) misses by $392.7M.
    • Press Release
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  • Jan. 30, 2014, 12:05 AM
  • Jan. 29, 2014, 5:30 PM
  • Jan. 15, 2014, 11:47 AM
    • Invesco's (IVZ) ETF management group, PowerShares, announced the launch of the NYSE Century Portfolio ETF (NYCC) earlier today.
    • By tracking companies that have been incorporated in the U.S. for at least 100 years, with a market cap of over a billion dollars and are currently trading on the NYSE or NASDAQ, this fund offers exposure to some of the strongest institutions available.
    • Other multi-cap U.S. ETFs: VTI, SCHB, ITOT, ONEQ, IYY, NYC, EXT, FVI, EUSA, FNDB, TOTS
  • Jan. 14, 2014, 3:08 PM
    • Reviewing December asset-gathering disclosures by AllianceBernstein (AB +1%), Artisan Partners (APAM -0.7%), Franklin Resources (BEN +2.1%), Invesco (IVZ +0.7%), and Legg Mason (LM +1%), Citigroup's William Katz, Neil Stratton, and Steven Fullerton warn the names could be vulnerable to a correction after big runs over the last 6-12 months.
    • Behind the moves were hopes of rising organic growth prospects, and a mix shift of investor preferences towards equities. "We believe such thesis may begin to break down - and traditionals may be vulnerable to correction - as underlying organic growth dynamics appear mixed overall and by asset, client, and geographical breakdowns. Furthermore, lead indicators are muddled as market dynamics are less favorable thus far in 2014 and industry data are choppy.'
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Company Description
Invesco Ltd is an investment management companyoperating in more than 20 countries. Itprovides retail and institutional clients with an array of investment management capabilities.It has presence inthe institutional and retail markets.
Sector: Financial
Country: United States