Friday, May 30, 2014

Invesco First Quarter, 2014 Financial Report

From the first Quarter of Invesco. Net income declined to $187.8 million, or 43 cents a share, from $222.22 million or 49 cents compare to the last year. But Invesco’s assets rose 1.1% in the quarter to a record $787 billion because of deposits in other businesses and higher equity markets. The U.K penalty and related legal fees decreased earnings by 7 cents a share. Additional costs connected to building closure and job cuts reduced net income by 9 cents a share. It shows 15% decline of profit due to the company was fined by U.K. regulators for breaking rules on limiting risk (Invesco Perpetual broke rules on limiting risk 33 times, didn’t communicate properly with investors about derivatives, didn’t record trades on time and failed to monitor whether trades were allocated fairly among funds). And announced a quarterly dividend of 0.25 per share. This represents a $1.00 annualized dividend and a dividend yield of 2.78%.
In May 12th, 2014. Invesco Ltd reported preliminary month-end assets under managements of $779.4 billion, a decrease of 1% month over month. The decrease was driven by negative net long-term flows and outflows. There is $13 billion outflow in the U.K.
Despite the weaker first quarter financial report. Investment performance during the quarter was strong across the time period. 81% of assets were ahead of peers on a three-year basis, and 73% of assets were ahead of peers on a one-year-over the past year. From updated model, the new target price $42.40 represent 17.96% upside.

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