GLOBAL - Fund management giant Amvescap has blamed falling markets for a near 50% slump in first quarter pre-tax profits.
The firm – which is the parent company of defined contribution specialist Invesco – reported earnings of £48.5m against £97.5m in the corresponding period last year.
Amvescap’s revenues fell 28.3% to £270.8m.
It blamed markets for the slump in assets under management, which fell from £208.5bn at the start of the year to £199.6bn by the end of the March.
Chairman Charles Brady said the company was “on track” to meet its target of cutting costs by US$150m (£94m) by the end of 2003.
As part of the cost-cutting, the firm announced that it intended to lay off a number of staff worldwide.
And Brady was upbeat about the group’s future despite the slump in earnings.
He said: “While global equity markets remained depressed during the first quarter, which adversely affected our revenue levels, the resolution of the war in Iraq and the gradual improvement in corporate earnings give rise to a cautious optimism that markets may begin to stabilise and recover.
“Amvescap is well positioned to benefit from an economic and market recovery.”
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