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Money Management Executive

Amvescap Reports 3Q Outflows, Profit Losses

October 25, 2004, 1:00 a.m. EDT 1 Min Read

Citing the company’s settlement with federal authorities for charges of improper mutual fund trading, analysts predict a third-quarter loss for the UK firm Amvescap, Reuters reports.

After a profit of $123.5 million in the second quarter, Amvescap, the parent company to AIM and Invesco, is projected to post a pre-tax profit before goodwill and amortization of just $121 million for the three months ending in September, according to eight analysts surveyed by Reuters.

Assets under management are expected to drop from $371.8 billion to $368 billion, thanks to a falling market and withdrawals by clients.

In September, Amvescap agreed to pay $450 million in fines stemming from improper trading at AIM and Invesco. Amvescap, the largest fund manager in the world, has felt outflows ever since it was implicated in the scandal. In the second quarter, its outflows totaled $5.37 billion.

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Money Management Executive
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