Amvescap plc reported that its profit before tax, goodwill amortization and exceptional items decreased by 31% during the nine month period of 2002 to £263.2 million from £380.8 million in 2001.

“In response to the difficult market environment of the last two years, we have steadily adjusted the size of our operations,” said Charles Brady, executive chairman. “Continuing significant market declines during the third quarter demand that additional savings be achieved, and accordingly, we have initiated a cost reduction program that will further reduce operating expenses by approximately £100 million by the end of 2003.”

“We have remained focused on the key elements of our strategy during this challenging period. Aging populations, a shift from state-sponsored to personal retirement plans, and new distribution channels opening around the world are all long-term trends favourably affecting our industry, and each puts us in strong position to benefit from an economic and market recovery,” noted Brady.

The company will record an exceptional charge in the 2002 fourth quarter for costs relating to the cost reduction programs. This will add to the exceptional charge of £20.1 million recorded in the second quarter for internal reorganizations and restructuring programs.

Funds under management totaled US$323.6 billion at September 30, a decrease of US$74.3 billion from December 31. Average funds under management for the nine months ended September 30 were US$375.5 billion, a decrease of US$24.7 billion over the same period of 2001. Average funds under management during the third quarter were US$348.4 billion compared to US$385.9 billion for the preceding quarter. Approximately 50% of the total funds under management were invested in equity securities with the remaining 50% invested in fixed income and other securities at September 30.

Amvescap is the parent of Canada’s AIM Funds Management Inc.