The parent company of scandal-sapped Invesco feeling the heat from its subsidiarys wrongdoings, as Amvescap reported that Invesco and its manager, AIM Investments, have suffered a combined mass withdrawal of $8 billion during the first half of 2004, Rocky Mountain News reports.
London-based Amvescaps stock fell 6.5% on Thursday in investors reactionary measures to the news, and the company said it would hold off on the decision of whether to offer a dividend.
According to the newspaper, only Janus and Putnam have suffered worse withdrawal symptoms than Invesco and AIM. In a statement accompanying the earnings report, Amvescap Executive Chairman Charles Brady admitted that "uncertainty surrounding (U.S.) regulatory issues has hindered our participation" in foreign markets like Canada, Europe and Asia."
He added that the company is still trying to reach a settlement with regulators for improper trade allegations at AIM and Invesco. Amvescap assets under management have crept up slightly over the past year, from $370.6 billion to $371.8 billion.
