Invesco profit jumps 81 percent on unit sale, strong markets
By Ashley Lau
(Reuters) - Invesco Ltd (IVZ.N: Quote) said on Thursday its fourth-quarter profit jumped 81 percent, boosted by strong markets and the sale of its Atlantic Trust Private Wealth Management unit.
The Atlanta-based money manager, which oversees the PowerShares line of exchange-traded funds, said net profit rose to $287.4 million, or 64 cents per share, from $158.7 million, or 35 cents per share, a year earlier.
Excluding the sale of its Atlantic Trust unit, which Invesco sold to the Canadian Imperial Bank of Commerce for $210 million, the company earned 58 cents per share. Analysts on average had expected 57 cents, according to Thomson Reuters I/B/E/S.
Strong markets and demand for alternative and equity products helped drive growth in assets under management at the firm during the quarter.
"In risk-on environments, clients shift demand toward equities," Chief Executive Officer Martin Flanagan said on a call with analysts on Thursday. "This is exactly what we experienced."
Invesco shares were up 1.8 percent at $33.64 in midday trading on the New York Stock Exchange. Invesco shares gained 39.5 percent in 2013, mirroring the rise in the broader stock market.
MARKET RALLY BOOSTS ASSETS
Invesco ended the year with $778.7 billion in total assets under management, an increase of $33.2 billion during the three months ended Dec 31, and up 16.7 percent from a year ago. Continued...