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Editor's Eye on Atlanta: Invesco Has Institutional Backing Despite AUM Slip

By Brian Wolak

Earlier this week, citybizlist reported that Invesco Ltd. (NYSE:IVZ) disclosed preliminary month-end assets under management (AUM) of $653.7 billion, a decrease of 1.2 percent month over month.

The Atlanta-based investment manager, led by president and CEO Martin L. Flanagan, attributed the decrease largely to negative market returns and negative foreign exchange. It said that the latter decreased AUM by $1.9 billion during the month while noting that long-term net flows, excluding ETF, UIT and passive AUM were positive for the month.

Citybizlist dug back into Invesco's most recent proxy statement to see who its largest investors were. There were three that owned 5 percent or more:

Viking Global Performance
Greenwich, Conn.
7.7 percent
35.57 million shares
$797.16 million

Viking Global Investors, founded in 1999, is a privately owned hedge fund sponsor that employs a bottom-up stock picking approach along with a long/short strategy to select its securities.

Wellington Management Co.
Boston, Mass.
6.12 percent
28.30 million shares
$634.21 million

Led by CEO Perry Traquina, and with approximately $663 billion in client assets under management, Wellington Management serves as an investment advisor to more than 1,950 institutions located in over 50 countries.

T. Rowe Price (Nasdaq:TROW)
Baltimore, Md.
5.0 percent
23.32 million shares
$522.70 million

T. Rowe Price was founded in 1937 and manages nearly $510 billion in assets. Led by James Kennedy, the organization provides mutual funds, subadvisory services, and separate account management for individual and institutional investors, retirement plans, and financial intermediaries.

None of the three institutional giants have filed any recent SEC filings disclosing reductions in stakes.

Of Invesco's AUM drop, Jefferies & Co. observed, "total long term flows were positive highlighted by flows into fixed income and alternatives. Not surprisingly, flow trends within actively managed equity funds moderated m/m as overall industry flows deteriorated."

In an earlier report, Jefferies said that Invesco has a buy rating and a $29 price on shares (stock is currently trading around $22.41) and noted "we believe both IVZ and TROW should post improving fund flow trends q/q. For IVZ this trend has been highlighted in its monthly AUM releases for April and May. While likely deteriorating somewhat in June (AUM will be reported next Tues), we believe the company is positioned to show continued improvement in its flow trends as it just completed the fund consolidation process and investment performance remains solid."

Bio:

Martin L. Flanagan
Martin L. Flanagan is president and chief executive officer of Invesco, a position he has held since August 2005. He is also a member of the Board of Directors of Invesco and serves as a trustee and vice chairman of the Invesco Funds. Mr. Flanagan joined Invesco from Franklin Resources, Inc., where he was president and co-chief executive officer from January 2004 to July 2005. Previously he had been Franklin's co-president from May 2003 to January 2004, chief operating officer and chief financial officer from November 1999 to May 2003, and senior vice president and chief financial officer from1993 until November 1999. Mr. Flanagan served as director, executive vice president and chief operating officer of Templeton, Galbraith & Hansberger, Ltd. before its acquisition by Franklin in 1992. Before joiningTempleton in 1983, he worked with Arthur Andersen & Co. Mr. Flanagan received a B.A. and a BBA from Southern Methodist University (SMU). He is a CFA charter holder and a certified public accountant. He is vice chairman of the Investment Company Institute. He also serves as a member of the executive board at the SMU Cox School of Business and is involved with a number of civic activities in Atlanta.

Invesco Ltd.

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