AMVESCAP PLC reported that operating profit increased by 27.1% for the three months ended March 31 to $237.2 million, up from $186.6 million during the same period the previous year. However, operating profit decreased 5.2% from the three months ended Dec. 31, 2006, which included the benefit of $21.8 million of insurance recoveries.

“With first-quarter operating profits rising to $237.2 million, a 27.1% increase over the same period last year, higher margins, positive net fund flows, and record assets under management, AMVESCAP is making good progress in our multi-year strategic plan for the company,” said AMVESCAP president and CEO Martin L. Flanagan in London. “Actions we continue to take to strengthen our business and work more effectively as a single, global organization will allow us to continue to build on this solid momentum.”

Net revenue for the three months ended March 31 were $670.7 million, up from $584.1 million during the same quarter the previous year and $655.3 million during the three months ended Dec. 31, 2006. Net revenue for the three months ended March 31, included performance fees of $18.8 million, down from $33.2 million during the same quarter in 2006 and $25.9 million during the three months ended Dec. 31, 2006. Operating expenses totalled $433.5 million for Q1, up from $397.5 million in Q1 2006 and $405 million in Q4 2006. Operating expenses for the fourth quarter of 2006 included the benefit of $21.8 million of insurance recoveries.

Assets under management at March 31 were $471.2 billion, up from $410.9 billion in Q1 2006 and $462.6 billion in Q4 2006. Average AUM during the first quarter of 2007 were $466.9 billion, compared to $452.7 billion for Q4 2006 and $401.3 billion for Q1 2006.

Long-term net inflows for the three months ended March 31 were $0.7 billion, with inflows of $30.4 billion and outflows of $29.7 billion. Money market net outflows in the three months ended March 31 were $0.8 billion (not included in long-term flows above).

AMVESCAP operates under the AIM, INVESCO, AIM Trimark, Atlantic Trust, Invesco Perpetual, PowerShares and WL Ross brands