Invesco Ltd. (IVZ)

AMVESCAP is one of the world largest independent asset mangers, operating with well-established brands in the investment space. It looks like a reinvigorated giant, full of life under the new leadership and has a good asset base, well diversified, spanning across all asset class, customer segments and geographies.

Though in the recent past, it had taken a beating with poor investment returns, decreasing margins, tarnished image and costly legal settlements, things are slowly changing from the recent quarter. AMVESCAP finished the year 2006 with assets under management (AUM) up 23.9% at $717 billion wholly attributed to market appreciation, acquisitions and foreign currency gains. The trend has been a gradual shift towards equity component from debt, serving more non-U.S. domicile clients as well as alternative investments stealing the spotlight.

The management is very much focused on cutting cost. Endorsing the same, it is consolidating its back office operations and reducing layer of decision-making process. Resorting to global human talent and relocation of jobs to low cost destinations like India and Canada would help it drive margins. Moreover it is consolidating its North American operations and re-branding itself as IVESCO.

The company is very bullish on the exchange traded fund segment (ETF) for which it has acquired Power Share Capital Management. Power Share has recently floated three new ETF in American Stock Exchange and has been selected by NASDAQ to sponsor its ETF from 2007, currently pending approval from Securities Exchange Commission. The private equity boutique WL Ross and Co seems to gain from the current growing global economy, robust corporate earning and positive signs like U.S capital market indices touching the all time high.

AMVESCAP is trading attractively, with a lower price to earning ratio among its peer groups, given its excellent profile after restructuring with a good asset mix and prospects steered by an excellent management.