Fund manager Amvescap plc reported lower profits in the second quarter ended June 30. Amvescap is the parent company of AIM Funds Management Inc.

Profit before tax, goodwill amortization and exceptional items decreased by 30% during the second quarter of 2002 to £95.1 million, compared to £135.7 million in the second quarter 2001. Revenues for the three months amounted to £368.9 million compared to £426.3 million from the prior year’s quarter.

“Global capital markets continue to reflect severe volatility which has impacted revenues from management fees,” said Charles Brady, executive chairman. “Against this backdrop, many business indicators suggest an improving world economy. Hopefully, these factors will lead to recoveries in the equity markets by the end of the year.”

Funds under management totalled US$364.0 billion at June 30, a decrease of US$33.9 billion from December 31. Approximately 55% of the total funds under management was invested in equity securities and 45% was invested in fixed income securities.

The Canadian retail business gained US$1.4 billion in net sales in the six months ended June 30. Funds under management amounted to US$183.0 billion at June 30, including US$23.3 billion relating to the Canadian unit and US$57.6 billion in institutional money market assets.