Fund giant AMVESCAP PLC, parent company of AIM Funds Management Inc., reported that profit before tax, goodwill amortization and exceptional items decreased 33% to US$516.6 million from US$693 million in 2001.
“We reduced expenses in a controlled manner throughout 2002 while maintaining our breadth of product, distribution capabilities and quality of service. We have aligned our corporate structure under our primary brands in response to clients’ and distributors’ increasing need for integrated solutions,” said Charles Brady, executive chairman.
The company previously announced that it has initiated a cost reduction program to reduce operating expenses by US$150 million by the end of 2003.
Funds under management totaled US$332.6 billion at Dec. 31, 2002 compared to US$397.9 billion at Dec, 31, 2001. Money market funds, included above, amounted to US$57 billion at Dec. 31, 2002 compared to US$63.6 billion at the end of the prior year.
Approximately 50% of the total funds under management was invested in equity securities and 50% was invested in fixed income and other securities at Dec. 31, 2002. The equity securities were invested in the following disciplines at Dec. 31, 2002: 36% in growth, 38% in core and 26% in value styles.