Amvescap plc reported that it earned US$424.6 million ($487.9 million) in 2005.

The asset management giant’s profit before tax for the 2005 year amounted to US$360.1 million, up from just US$39 million in 2004. The results for 2005 include a US$75.7 million restructuring charge, and the 2004 results included a charge of US$413.2 million representing the U.S. regulatory settlement.

Operating profit for 2005 reached US$424.6 million, compared with US$87.3 million in 2004. Operating profit before the adjustments for 2005 was flat at US$500.3 million (US$500.5 million in 2004).

“Our work during the past months has laid a strong foundation for success in 2006,” said Amvescap president and chief executive officer Martin Flanagan. “We are building renewed business momentum by taking advantage of Amvescap’s inherent global strengths, simplifying Amvescap’s operating platform, and with Amvescap’s recently announced combination with PowerShares, creating a unique industry product line featuring both actively managed mutual funds and distinctive exchange traded funds.”

“Our restructuring actions will allow Amvescap to reduce costs by operating more efficiently and effectively,” added Flanagan. “Assuming a continuation of the current business environment, the actions we are taking should allow us to reduce 2006 operating expenses by approximately US$120 million.”

Most of the profit improvement in 2005 came from lower expenses and reduced one-time charges. Net revenues for 2005 were basically flat at US$2.17 billion, up slightly from US$2.12 billion in 2004. Total operating expenses (including adjustments) totaled US$1.75 billion for 2005, compared with more than US$2.0 billion the previous year. In addition to the impairment charge noted previously, operating expenses for 2005 include several charges relating to continuing reviews of the business.

Assets under management at the end of 2005 were US$386.3 billion, up from US$382.1 billion at the end of 2004. Average assets under management during the fourth quarter were US$380.9 billion, compared with US$378.1 billion for the preceding quarter and US$374.0 billion for the fourth quarter of 2004. Average assets under management for 2005 were US$377.6 billion, compared with US$371.3 billion in 2004.

Net outflows for the year ended Dec. 31, 2005, were US$16.2 billion, with sales of US$66.3 billion and redemptions of US$82.5 billion. For the fourth quarter of 2005, net outflows were US$3.7 billion, with sales of US$15.8 billion and redemptions of US$19.5 billion. Fourth quarter 2005 net outflows included the loss of a US$1.4 billion sub-advised client in Amvescap’s U.S. retail channel.