Invesco 4Q net income falls 22 pct

Invesco posts 22 pct drop in 4th-qtr net income, as clients contribute less

Associated Press

ATLANTA (AP) -- Invesco Ltd. said Thursday its fourth-quarter net income dropped 22 percent as its clients invested less.

The Atlanta-based money manager earned $158.7 million, or 35 cents per share, down from $202.3 million, or 44 cents per share, in the same quarter last year. Excluding one-time items, the company posted an adjusted profit of 45 cents per share for the recent quarter.

Revenue rose 10 percent to $1.09 billion from $997.1 million.

Analysts, on average, expected a profit of 47 cents per share on $1.11 billion in revenue, according to FactSet.

Net inflows, or the amount of new money that the company's mutual funds and other investment products attracted during the quarter, fell to $1 billion from $6 billion in the year-ago quarter. That reflects a broader trend in the industry, which saw consistent declines in the amounts invested in the second half of 2012, in part because of uncertainty regarding the "fiscal cliff."

The company's total assets under management increased 10 percent to $687.7 billion as of Dec. 31.

Investment management fees increased 13 percent to $865 million, while service and distribution fees increased 10 percent to $199.4 million. But the company's employee compensation, marketing and other expenses also rose.

For the full year 2012, the company earned $677.1 million, or $1.49 per share, down from $729.7 million, or $1.57 per share, in 2011. Revenue increased $4.18 billion from $4.09 billion.

In midday trading, Invesco shares slid $1.10, or 3.9 percent, to $27.18. The stock has moved between $20.49 and $28.49 in the past 52 weeks.

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