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Amvescap Reports Strong Earnings

The acquisition of an ETF provider helps give the U.K. investment manager a boost.
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U.K.-based investment manager

Amvescap

(AVZ)

reported a 73% increase in pre-tax profit to $754.6 million for 2006, thanks in part to its September acquisition of ETF provider PowerShares Capital Management.

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The company, which also manages fund companies Aim Investments and Invesco, reported a record $462.6 billion of assets under management, a nearly 20% increase from the $386.3 billion reported at the end of 2005.

It also reported that PowerShares's assets under management have grown to $8.5 billion as of the end of 2006, from $6.3 billion since the acquisition, with net inflows of $1.1 billion.

Amvescap also had net revenue of $2.41 billion for 2006, up from $2.17 billion the previous year. Diluted earnings for the year were $0.60 per share, up from $0.26 in 2005.

The Amvecsap board also has recommended a dividend for 2006 of $0.104 per share, approximately $85.9 million. This is a slight increase over the $0.098 per share, or $80.3 million, dividend in 2005. If approved by shareholders, the dividend will be paid on May 30 to shareholders on the register as of April 27. The ex-dividend date will be April 25.