Invesco profit jumps 81 percent on unit sale, strong markets

Thu Jan 30, 2014 12:47pm EST
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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.


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...