Amvescap Inc. today reported lower first quarter earnings, noting that its Canadian and UK businesses are doing well, but the U.S. operations remain a problem.

The asset management giant reported pre-tax profits of £59.1 million, compared with £73.6 million for the first quarter of 2004, which included a gain of £6.4 million from the sale of a business. Revenues were more or less flat at £286.0 million for the quarter, down from £288.3 million in 2004.

“Amvescap’s businesses in the United Kingdom and Canada continue to show good results, as we concentrate our efforts on meeting the challenges that remain in our U.S. businesses,” said Charles Brady, executive chairman. “At a time of weak markets, Amvescap made progress increasing gross sales and reducing net redemptions from the prior quarter, and last week’s announcement of the sale of our retirement business illustrates how we are sharpening our focus on those areas of asset management where we have the greatest opportunity to excel.”

Funds under management totaled US$375.4 billion (US dollars) at March 31, compared with US$382.1 billion at Dec. 31, 2004. Of that total, US$35.9 billion is with the Canadian AIM Trimark subsidiary, up from $US34.6 billion at the start of the quarter. Foreign currency gains were responsible for the biggest share of the increase, about US$600 million worth, with US$400 million coming from new business, and US$300 million from market gains.

Average funds under management amounted to US$377.4 billion for the first quarter of 2005 compared with US$376.3 billion for the first quarter of 2004 and US$374.0 billion for the fourth quarter of 2004.

News release
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