DOW JONES NEWSWIRES 
 

Invesco Ltd.'s (IVZ) second-quarter earnings fell 54% on declines in revenue and assets under management, while inflows slowed from earlier this year amid a slump in cash to money-market funds.

The recent improvement in markets bodes well for money managers, who have been buffeted by the downturn. The industry struggled in recent quarters as some investors rushed to the sidelines. But uncertainty remains about who will benefit from Wall Street consolidation.

Rival T. Rowe Price Group Inc.'s (TROW) Chief Executive James Kennedy was optimistic last week as its results largely beat forecasts after the recent market rally boosted its assets under management from the prior quarter.

Invesco Chief Executive Martin Flanagan said Monday that his company's focus on disciplined management helped it strengthen long-term flows and other results. He added the company raised $460 million of new equity during the period.

Invesco reported a profit of $75.7 million, or 18 cents a share, down from $162.8 million, or 41 cents a share, a year earlier. The latest period included $10 million in gains on the completion of its debt tender offer and foreign-exchange gains.

Revenue decreased 33% to $625.1 millionas investment-management fees dropped 32%.

Analysts polled by Thomson Reuters most recently were looking for earnings of 16 cents on revenue of $597 million.

Operating margin fell to 17.7% from 25.6%.

Assets under management fell 16% from a year earlier to $388.7 million as of June 30 but rose 12% during the quarter. Fund inflows were $4.7 billion in the quarter, compared with $9.3 billion in the first quarter. There were $3 billion in long-term net inflows, up from $700 million in the first quarter. Inflows to money funds totaled $1.7 billion, down from $8.6 billion in the prior quarter.

Shares closed at $19.36 on Friday and didn't trade premarket. The stock has more than doubled since March.

-By Tess Stynes and Kerry Grace Benn, Dow Jones Newswires; 212-416-2481; tess.stynes@dowjones.com