Invesco Ltd. (IVZ) reported a 3% rise in its preliminary month-end assets under management (AUM) for the month of February 2012. The company’s AUM for the reported month was $667.6 billion, up from $648.3 billion at the end of January 2012.

Invesco’s February AUM primarily benefited from positive market returns, foreign exchange and long-term net inflows. Foreign exchange led to $0.8 billion rise in the AUM during the month under review.

Invesco’s preliminary Active AUM stood at $558.1 billion at the end of February 2012, showing a 2.7% climb from $543.6 billion in the prior month. Moreover, in February 2012, preliminary Passive AUM was $109.5 billion against $104.7 billion in January 2012.

As of February 29, 2012, Invesco’s average assets was $651.3 billion, while the total value of average active assets came in at $547.8 billion.

At February-end, Invesco’s total equity assets grew 4.6% to $300.9 billion from $287.6 billion in January 2012. Likewise, the company’s total fixed income assets nudged up 0.9% to $153.3 billion from $152.0 billion in January 2012.

During the month under review, Invesco’s balanced assets were $49.7 billion, rising 5.7% from the prior month. Additionally, alternative AUM grew marginally to $88.5 billion during the reported month from $88.4 billion in the prior month.

Further, Invesco’s money market AUM stood at $75.2 billion (including $71.0 billion in institutional money market AUM and $4.2 billion in retail money market AUM) in February, improving 2.6% from $73.3 billion, recorded in January 2012.

Peer Performance

Last week, Franklin Resources Inc. (BEN) reported its preliminary month-end AUM for February 2012. The company reported preliminary AUM of $727.4 billion for its subsidiaries, as of February 29, 2012, reflecting a growth of 3.3% from $704.3 billion as of January 31, 2012.

Our Viewpoint

Improving long-term investment performance, propelled by a gradual recovery in the global equity market, is likely to boost Invesco’s operating results over the mid to long term. Although the operating leverage is expected to improve significantly over the long term owing to Invesco’s cost control initiatives, rising operating expenses will remain a near-term headwind to the company.

Invesco currently retains a Zacks #2 Rank, which translates into a short-term ‘Buy’ rating.

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