Invesco, NYSE Euronext, CME & Principal

One money manager and two exchange operators posted profits in the fourth quarter. Invesco Ltd. posted a 7% increase in fourth quarter profit, due an increase in investment management fees. The Atlanta-based money management firm’s net income grew to $175.9 million, or 43 cents per share, from $165.2 million, or 40 cents per share, during the year-ago period. The earnings were offset by $12.8 million in charges related to the company relisting on the New York Stock Exchange in December and $9.8 million related to proposed settlement of market timing litigation. The combined items slashed earnings by 4 cents per share. Fees from investment management grew 19%, while revenue from service and distribution fees rose 11%. Assets under management rose 9% to $500.1, compared to the year-ago period. NYSE Euronext Inc. , the parent company of the New York Stock Exchange, reported that quarterly profit more than tripled, as trading volume grew and more companies listed the exchange. Net income rose to $156 million, or 59 cents per share in the quarter ended Dec. 31, up from $45 million, or 29 cents per share, in the year-ago period. Excluding buyout costs and other one-time charges, net income totaled $175 million, or 66 cents per share. Average daily trading volume on the NYSE and the NYSE Arca increased 16% in 2007 from 2006. CME Group Inc., the parent of the Chicago Mercantile Exchange, said fourth-quarter net income increased 96%, as its acquisition of the Chicago Board of Trade increased trading volume. Net income for the quarter totaled $201.1 million, or $3.75 per share, in the last three months of 2007, compared to $102.6 million, or $1.91 per share, in the fourth quarter of 2006. Trading volume on the CME increased 23% to 10.6 million contracts per day. Principal Financial Group Inc. said yesterday that earnings fell 87% in the quarter, hurt by write-downs from investments that involved subprime mortgages. The Des Moines, Iowa-based insurer said net income fell to $34.1 million, or 13 cents a share, from $284.1 million, or $1.04 a share, in the year-ago quarter. The results included net realized and unrealized capital losses of $211.5 million, of which more than $50 million was related to the subprime mortgage crisis. The company posted a $9.7 million gain from investments during the year-ago period.