DOW JONES NEWSWIRES 
 

Invesco Ltd.'s (IVZ) first-quarter net income tumbled a bigger-than-expected 80% amid $6.6 million in investment write-downs and a steep decline in asset-management fees.

The sector's outlook has improved somewhat from the fourth quarter, which was one of the worst on record, though investors' shifts out of stock funds and lower asset balances continue to pressure margins.

However, on Wednesday rival asset manager T. Rowe Price Group (TROW) reported its first-quarter profit plunged amid write-downs of its own mutual-funds investments and a decline in assets under management, leading it to cut its staff by 5%, mostly in back-office functions.

Invesco reported net income of $30.7 million, or 8 cents a share, down from of $155.2 million, or 39 cents a share, a year earlier. Net revenue decreased 40% to $548.6 million as investment-management fees tumbled 41%.

Analysts polled by Thomson Reuters most recently were looking for earnings of 14 cents on revenue of $593 million.

Assets under management dropped 2.5% from the fourth quarter on reduced market values and a stronger dollar. Fund inflows were $9.3 billion, compared with fourth-quarter fund outflows of $2 billion. Long-term funds had net inflows of $700 million while money-market funds took in $8.6 billion.

Shares closed at $15.47 on Wednesday and didn't trade premarket. The stock is down roughly 45% in the past seven months.

-By Tess Stynes, Dow Jones Newswires; 201-938-2473; tess.stynes@dowjones.com