Invesco Ltd.'s second-quarter earnings fell 54% on declines in revenue and assets under management as inflows slowed from earlier this year during a general slump in cash to money market funds.

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

James Kennedy, the chief executive of rival T. Rowe Price Group Inc., 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's 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 Atlanta 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 as well as foreign exchange gains.

Revenue fell 33%, to $625.1 million, as investment-management fees dropped 32%. Analysts queried by Thomson Reuters most recently expected earnings of 16 cents a share 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 at June 30, but were up 12% from the previous quarter. Fund inflows were $4.7 billion in the quarter, compared with $9.3 billion in the first quarter. This included $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 previous quarter.

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