(February 6 – 10:50 ET) – Amvescap plc is reporting fourth quarter net income rose 9% to £56.8 million, or 7.4p a share. This is below analysts’ expectations.

For the year, Amvescap reported earnings of £288.5 million, or 40.5p a share,up 59% from 1999. But market weakness and the cost of the firm’s major acquisitions — Canada’s Trimark Financial Corp. and U.K.-based money manager, Perpetual plc — are being blamed for the fourth quarter slide.

The firm is spending £48 million on integration costs. These Trimark and Pepetural deals made Amvescap the second largest manager in both the U.K. and Canada. The firm is now reportedly in talks to acquire Kentucky-based National Asset Management.

At the end of the year, the firm boasts US$402.6 billion in assets under management, up US$45.2 billion from 1999. The Trimark and Perpetual acquisitions added US$34.1 billion.

“2000 stands out as a year of significant accomplishments for Amvescap by every measure, not withstanding the sharp declines in global market levels in the fourth quarter,” said executive chairman Charles Brady. Through organic business-building and key acquisitions, Amvescap increased the strength of our franchise, expanded our range of products and services for clients, and further raised the visibility of our powerful primary brands, AIM and Invesco.”

“The strong performance in 2000 supports our optimism for the future and belief that Amvescap is well positioned for continued growth and financial success, though continued pressure on global equity markets may constrain our short-term growth rates,” said Brady.”
-IE Staff