GLOBAL - Anglo/American financial services group Amvescap became the latest casualty of turbulent markets, reporting a "disappointing" 31% drop in gross profits, according to the firm.
Amvescap cited “extremely volatile market conditions” and the September 11 tragedy as causes for the slump.
Gross profits amounted to £110.1m ($161.8m) compared to £159.4m ($235.9m) for the same period in 2000.
But commenting on the results, Charles Brady, executive chairman, said that he was upbeat about an economic recovery in 2002, adding that the recent actions by the Federal Reserve and European central banks “should provide a basis”.
Amvescap finalised three acquisitions in Q3, 2001 totalling £210m. Pell Rudman Corporation, the foundation for Amvescap’s private wealth management business, was completed in August. The firm also purchased Taiwan SITE Grand Pacific and Parkes & Company, a UK real estate advisor.
Funds under management dropped 12% on the corresponding quarter last year to $361.3bn (£245.8bn), despite an additional $10.2bn from the acquired companies.
Amvescap also pointed to expenses of £24.4m in the quarter. Integration costs of acquired companies amounted to £17.7m with the remainder relating to costs towards a new operating facility which has been postponed indefinitely.
By Madhu Kalia
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