The strong drops that have been witnessed in fluctuating interest rates have increased the number of analysts who believe that the second wave of the debt crisis, which has crossed the Atlantic at this point, will stop negatively affecting corporate profits. For example, in Europe they are just 3% less than annual estimates. Nonetheless, there are always exceptions, and fund managers are some of them.
The incredible volatility that just shook the equities and fixed income markets is causing investors to flock to capital management firms for advice and financial assessment that will allow them to capitalize on opportunities created by the markets. At the very least, people are seeking advice on how to ensure that their portfolios do not take big hits. And the fund managers, at least those with money in the markets right now, have been wise to take advantage of this extraordinary situation. On average, they have taken profits of 30% in comparison to the same period last year.
Invesco is one of the flashiest. The American fund seems to have found the perfect strategy for avoiding the current crisis: increase fund commissions. It announced that management fees would increase to 30.5% and collected 819 million dollars in the process. It brought in 627 million in Q2 of 2010. No surprise that the firm headquartered in Atlanta has closed Q2 of 0074his year with a 340% increase to profits.
