T. Rowe Price Group, Inc. (TROW), Janus Capital Group Inc (JNS): Mutual Fund Companies Make Good Investments Too

Invesco Ltd. (NYSE:IVZ)

Invesco manages approximately $750 billion in assets through its family of mutual funds, as well as through its other retail, institutional and private banking channels. Earnings estimates are on the rise for this company. Five-year growth estimates sit at a solid 15% and its price to earnings ratio of just under 14 measures favorably to its peers. Its 2.7% yield is nice as well, as the company just bumped up the payout again in the second quarter.

Conclusion

Investment management companies can look very similar to other financials in that they can provide slow steady growth coupled with a juicy yield. These companies will benefit from the aging of America and the shifts in strategy to get people to save more for retirement and other savings goals. These companies should see their assets under management continue to grow and that growth will continue to pad the bottom line.

David Dierking has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

The article Mutual Fund Companies Make Good Investments Too originally appeared on Fool.com and is written by David Dierking.

David is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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