Global investment manager Amvescap Plc reported today that its operating profit rose by 44% in the first quarter, year-over-year.

The firm said that operating profit for the first quarter of 2006 amounted to US$186.6 million, up from US$129.2 million in the first quarter of 2005. Net revenue for the three months ended March 31 increased by almost 6% to $584.1 million from $551.4 million in the same period last year. (Net revenue for the first quarter of 2006 included the recognition of institutional performance fees of $33.2 million.)

Assets under management at March 31 were $410.9 billion (up from $386.3 billion at the start of the year). Average assets under management during the first quarter were $401.3 billion, compared with $380.9 billion for the fourth quarter of 2005 and $377.4 billion for the first quarter of 2005.

Net inflows for the three months ended March 31 were $1.5 billion, with inflows of $23.1 billion and outflows of $21.6 billion. Net outflows for the three months ended Dec. 31, 2005, and March 31, 2005, were $3.7 billion and $2.5 billion, respectively.

“Positive net fund flows for the company and enhanced profitability have produced a solid start for Amvescap in 2006,” said Amvescap president and CEO Martin Flanagan. “Actions we have taken to unlock the inherent strengths of Amvescap and operate more efficiently and effectively combined with disciplined expense management have resulted in increased business momentum and margin expansion.

”Investment performance continues to improve in our U.S. retail mutual fund business and we have made progress towards our goal of bringing the ‘best of Amvescap’ to our clients with the recent addition of seven new U.S. retail mutual funds advised by investment teams throughout the company,” added Flanagan. “The upcoming addition of PowerShares’s distinctive ETFs to our broad range of actively managed investment products will provide our clients with one of the industry’s most comprehensive sets of investment solutions.”