Global investment manager Amvescap PLC reported an operating loss of £216 million for the third quarter ended Sept. 30, down from a profit of more than £50 million in the same period a year ago. The loss came as a result of exceptional items charges the firm faced in connection with the market timing investigation in the United States.

The company said its profit before tax, goodwill amortization and exceptional items amounted to £65.2 million (US$118.0 million), compared with £77.2 million (US$128.2 million) in the third quarter 2003. Diluted earnings per share before goodwill amortization and exceptional items dropped 21.2% from the same period in 2003. Revenues were down to £280.9 million British pounds from £304.3 million for the corresponding period of 2003.

Exceptional items for the nine months ended Sept. 30, were £249.7 million, representing the settlement costs of U.S. market timing regulatory investigations and costs associated with excess office space and reorganizations.

“With the resolution of regulatory issues relating to market timing with the SEC and the attorneys general of New York and Colorado, Amvescap is working to regain our business momentum by delivering strong investment performance and excellent service to our clients around the world,” said Charles Brady, executive chairman, in a release. “We have taken strong measures to increase our risk management and compliance capabilities in order to ensure that we will always uphold our clients’ trust by putting their interests first.”

Funds under management totaled US$362.7 billion at Sept. 30, a drop of US$7.9 billion from Dec. 31, 2003. And, institutional money market funds represent a bigger chunk of AUM, amounting to US$41.7-billion at Sept. 30, compared with US$50.9-billion at Dec. 31, 2003. Approximately 54% of the total funds under management were invested in equity securities with the remaining 46% invested in fixed income and other securities at Sept. 30. Equity securities were invested in the following disciplines at Sept. 30: 31% in growth, 41% in core and 28% in value styles.

Average funds under management for the nine months ended Sept. 30, were US$371.0 billion, an increase of US$35.4 billion over the same period of 2003. Average funds under management during the third quarter were US$364.0 billion compared with US$372.6 billion for the preceding quarter, a decrease of US$8.6 billion.

Amvescap is one of the largest independent global investment managers. It is the parent company of Toronto-based AIM Trimark Investments.

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