SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
Pursuant to Rule 13a-16 or 15d-16 Under
the Securities Exchange Act of 1934
For the month of July, 2006
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Commission File Number 001-13908
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AMVESCAP PLC
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(Translation of registrant's name into English)
30 Finsbury Square, London EC2A 1AG, ENGLAND
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(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports
under cover Form 20-F or Form 40-F.
Form 20-F X Form 40-F
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Indicate by check mark if the registrant is submitting the Form 6-K in paper as
permitted by Regulation S-T Rule 101(b)(1):
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Indicate by check mark if the registrant is submitting the Form 6-K in paper as
permitted by Regulation S-T Rule 101(b)(7):
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Indicate by check mark whether by furnishing the information contained in this
Form, the registrant is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes No X
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If "Yes" is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b): 82- N/A
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Description of document filed: AMVESCAP reports results for six months
ended 30 June 2006
---------------------------------------
For Immediate Release
Contact: Aaron Uhde Michael Perman
Phone: +1 404 479 2956 +44 (0) 207 065 3942
AMVESCAP REPORTS RESULTS FOR SIX MONTHS ENDED JUNE 30, 2006
London, July 27, 2006 - AMVESCAP reported that profit before tax for the six
months ended June 30, 2006 amounted to $355.9 million (six months ended
June 30, 2005: $222.4 million). Operating profit for the six months ended
June 30, 2006, amounted to $378.4 million (six months ended June 30, 2005:
$263.1 million). Diluted earnings per share was $0.28 for the six months ended
June 30, 2006 (six months ended June 30, 2005: $0.18). (NYSE: AVZ).
"AMVESCAP continues to make good progress in our efforts to become a premier
global investment management organization for our clients and shareholders,"
said AMVESCAP President and CEO Martin L. Flanagan. "Positive net fund flows and
more efficient operation of our global organization have produced higher
operating margins for the first half of 2006. The upcoming addition of
PowerShares's distinctive line of ETFs and this week's announcement of our
acquisition of WL Ross & Co. LLC, a recognized leader in financial
restructuring, will further deepen AMVESCAP's global capabilities and broaden
the investment skills we make available for our clients."
Results for Six Months Ended Results for Three Months Ended
June 30, June 30, June 30, March 31, June 30,
2006 2005 2006 2006 2005
----------------- ---------------- --------------- -------------- --------------
---------------- --------------- -------------- --------------
Net revenues(a) $1,172.2m $1,085.6m $588.1m $584.1m $547.8m
Operating expenses $793.8m $822.5m $396.4m $397.5m $413.9m
Operating profit $378.4m $263.1m $191.7m $186.6m $133.9m
Net operating margin(b) 32.3% 24.2% 32.6% 31.9% 24.4%
Profit before tax $355.9m $222.4m $184.2m $171.7m $111.6m
Earnings per share:
--basic $0.29 $0.18 $0.15 $0.14 $0.09
--diluted $0.28 $0.18 $0.15 $0.13 $0.09
(a) Net revenues represent total revenues less third-party distribution, service
and advisory fees.
(b) Net operating margin is equal to operating profit divided
by net revenues.
Earnings Summary
Net revenues for the six months ended June 30, 2006, were $1,172.2 million (six
months ended June 30, 2005: $1,085.6 million). Net revenues for six months ended
June 30, 2006, included the recognition of institutional performance fees of
$45.8 million (six months ended June 30, 2005: $14.7 million). Operating
expenses totaled $793.8 million for the six months ended June 30, 2006 (six
months ended June 30, 2005: $822.5 million). The net operating margin for the
six months ended June 30, 2006, was 32.3% (six months ended June 30, 2005:
24.2%).
Net revenues for the three months ended June 30, 2006, were $588.1 million
(three months ended March 31, 2006: $584.1 million). Net revenues for the three
months ended June 30, 2006, included the recognition of institutional
performance fees of $12.6 million (three months ended March 31, 2006: $33.2
million). Operating expenses totaled $396.4 million for the three months ended
June 30, 2006 (three months ended March 31, 2006: $397.5 million). The net
operating margin for the three months ended June 30, 2006, was 32.6% (three
months ended March 31, 2006: 31.9%).
Net debt (total debt of $1,287.0 million, less cash and cash equivalents of
$477.0 million, which excludes client cash of $10.2 million) as of June 30, 2006
was $810.0 million compared to $861.1 million as of March 31, 2006, and $733.6
million as of December 31, 2005. Client cash for the six months ended June 30,
2006, decreased $256.0 million since December 31, 2005. The decrease in client
cash, which contributed to the movement in our operating cashflows, was
primarily due to one depository account sponsored by our banking subsidiary
being replaced by an unaffiliated investment fund.
Dividend
The Board has declared an interim dividend of $0.077 per share (2005: 4.0p or
$0.074 per share). The ex-dividend date for the dividend will be September 6,
2006. The interim dividend will be paid on October 11, 2006, to shareholders on
the register on September 8, 2006, the record date, which will also be the date
upon which the foreign exchange rate will be established for payment to
shareholders who receive their dividends in sterling.
Assets Under Management
Assets under management (AUM) at June 30, 2006, were $413.8 billion (March 31,
2006: $410.9 billion). Average assets under management during the second quarter
of 2006 were $414.6 billion, compared to $401.3 billion for the first quarter of
2006 and $373.1 billion for the second quarter of 2005.
Long-term net inflows for the six months ended June 30, 2006, were $3.8 billion,
with inflows of $46.6 billion and outflows of $42.8 billion. Net inflows for the
three months ended June 30, 2006 were $2.3 billion and net inflows for three
months ended March 31, 2006 were $1.5 billion. In addition, money market assets
continue to grow, with net inflows of $2.2 billion in the second quarter of 2006
and $7.4 billion in the first quarter of 2006. Further analysis of AUM is
included in the supplemental schedules to this release.
Business Developments
During the second quarter, AMVESCAP continued to make progress in our efforts to
work more effectively as a global organization. We have begun to align
AMVESCAP's global operating platform by transforming the support structure of
our organization around the world, with a goal of streamlining our operations
and driving renewed efficiency. Internal measurement tools have been modified to
help gauge effectiveness as we work to implement the strategic plans outlined as
part of our year-end 2005 earnings presentation. Although some benefits of these
efforts will be realized during 2006, the most significant benefits should
become evident over the next few years.
In the meantime, the company continued to actively manage costs by focusing on
spending and incremental efficiency improvements. AMVESCAP is on track to meet
the expense commitments made in early 2006, subject to variances arising from
market and foreign exchange movements.
Relative investment performance improved during the quarter and the company
experienced positive net flows through both retail and institutional channels.
Flows were driven primarily by sales from our fixed income, money market, and
alternative asset class products, but also benefited from improved redemption
rates.
Operating results reflect the building momentum of the business. Net operating
margins were 32.6% for the quarter versus 31.9% in the first quarter and 24.4%
in the same quarter of 2005.
The previously announced acquisition of PowerShares Capital Management, an
Exchange-Traded Fund (ETF) provider, is scheduled to close in the third quarter.
The ETFs offered by PowerShares will complement the fund lineup and expand the
breadth of products we can offer to our clients through AIM Investments.
PowerShares fund assets grew to $5.9 billion at June 30, 2006.
AMVESCAP is a leading independent global investment manager, dedicated to
helping people worldwide build their financial security. Operating under the
AIM, INVESCO, AIM Trimark, Invesco Perpetual and Atlantic Trust brands, AMVESCAP
strives to deliver outstanding products and services through a comprehensive
array of enduring investment solutions for our retail, institutional and private
wealth management clients around the world. The company is listed on the London,
New York and Toronto stock exchanges with the symbol "AVZ." Additional
information is available at www.amvescap.com.
Members of the investment community and general public are invited to listen to
the conference call today, Thursday, July 27, 2006, at 2:30 p.m. BST (9:30 a.m.
EDT), by dialing one of the following numbers: 1-517-268-4676 or 1-888-455-2053
for U.S. callers. An audio replay of the conference call will be available until
Thursday, August 3, 2006, at 10:00 p.m. BST (5:00 p.m. EDT) by calling
1-203-369-3225 or 1-800-294-0988 for U.S. callers. The presentation slides that
will be reviewed during the conference call will be available on AMVESCAP's Web
site at www.amvescap.com.
# # #
This release may include statements that constitute "forward-looking statements"
under the United States securities laws. Forward-looking statements include
information concerning possible or assumed future results of our operations,
earnings, liquidity, cash flow and capital expenditures, industry or market
conditions, assets under management, acquisition activities and the effect of
completed acquisitions, debt levels and the ability to obtain additional
financing or make payments on our debt, regulatory developments, demand for and
pricing of our products and other aspects of our business or general economic
conditions. In addition, when used in this release, words such as "believes,"
"expects," "anticipates," "intends," "plans," "estimates," "projects" and future
or conditional verbs such as "will," "may," "could," "should," and "would" and
any other statement that necessarily depends on future events, are intended to
identify forward-looking statements.
Forward-looking statements are not guarantees of performance. They involve
risks, uncertainties and assumptions. Although we make such statements based on
assumptions that we believe to be reasonable, there can be no assurance that
actual results will not differ materially from our expectations. We caution
investors not to rely unduly on any forward-looking statements. In connection
with any forward-looking statements, you should carefully consider the areas of
risk described in our most recent Annual Report on Form 20-F, as filed with the
United States Securities and Exchange Commission ("SEC"). You may obtain these
reports from the SEC's Web site at www.sec.gov.
AMVESCAP PLC
Consolidated Income Statement
(Unaudited, in thousands, other than per share amounts and headcount)
Six Months Ended June 30,
2006 2005 % Change
---------------------- --------------------- --------------
Revenues:
Management $1,245,963 $1,084,261 14.9%
Service and distribution 268,583 282,985 (5.1)%
Other 56,732 60,666 (6.5)%
---------------------- --------------------- --------------
Total revenues 1,571,278 1,427,912 10.0%
Third-party distribution, service and
advisory fees (399,107) (342,360) 16.6%
---------------------- --------------------- --------------
Net revenues 1,172,171 1,085,552 8.0%
---------------------- --------------------- --------------
Operating expenses:
Compensation 504,809 513,964 (1.8)%
Marketing 71,714 77,753 (7.8)%
Property and office 54,025 62,475 (13.5)%
Technology/telecommunications 62,164 73,921 (15.9)%
General and administrative 101,121 94,361 7.2%
---------------------- --------------------- --------------
Total operating expenses 793,833 822,474 (3.5)%
---------------------- --------------------- --------------
Operating profit 378,338 263,078 43.8%
Investment income 10,676 7,718 38.3%
Other income/(loss) 3,444 (3,822) n/a
Interest expense (36,574) (44,568) (17.9)%
---------------------- --------------------- --------------
Profit before taxation 355,884 222,406 60.0%
Taxation - U.K. (37,404) (6,528) 473.0%
Taxation - outside of the U.K. (92,776) (73,008) 27.1%
---------------------- --------------------- --------------
Profit after taxation 225,704 142,870 58.0%
Minority interests (1,072) (522) 105.4%
---------------------- --------------------- --------------
---------------------- --------------------- --------------
Profit for the period attributable to
equity holders of the parent $224,632 $142,348 57.8%
====================== ===================== ==============
Earnings per share:
---basic $0.29 $0.18
---diluted $0.28 $0.18
Average shares outstanding:
---basic 787,019 793,629
---diluted 807,473 801,073
Ending Headcount 5,485 6,519
Final dividends paid per share $0.098 $0.091
Final dividends paid $80,308 $74,981
Interim dividends proposed per share $0.077 $0.074
Interim dividends proposed $63,656 $59,137
AMVESCAP PLC
Consolidated Income Statement
(Unaudited, in thousands, other than per share amounts and headcount)
Q206 Q106 % Change Q205 % Change
------------- ------------ ------------- ------------ -------------
Revenues:
Management $625,894 $620,069 0.9% $542,479 15.4%
Service and distribution 132,957 135,626 (2.0)% 140,530 (5.4)%
Other 29,434 27,298 7.8% 34,804 (15.4)%
------------- ------------ ------------- ------------ -------------
Total revenues 788,285 782,993 0.7% 717,813 9.8%
Third-party distribution, service and
advisory fees (200,233) (198,874) 0.7% (170,020) 17.8%
------------- ------------ ------------- ------------ -------------
Net revenues 588,052 584,119 0.7% 547,793 7.3%
------------- ------------ ------------- ------------ -------------
Operating expenses:
Compensation 251,449 253,360 (0.8)% 259,081 (2.9)%
Marketing 35,551 36,163 (1.7)% 38,166 (6.9)%
Property and office 26,985 27,040 (0.2)% 31,118 (13.3)%
Technology/telecommunications 30,099 32,065 (6.1)% 36,934 (18.5)%
General and administrative 52,266 48,855 7.0% 48,580 7.6%
------------- ------------ ------------- ------------ -------------
Total operating expenses 396,350 397,483 (0.3)% 413,879 (4.2)%
------------- ------------ ------------- ------------ -------------
------------- ------------ ------------- ------------ -------------
Operating profit 191,702 186,636 2.7% 133,914 43.2%
Investment income 5,575 5,101 9.3% 3,553 56.9%
Other income/(loss) 6,228 (2,784) n/a (2,324) n/a
Interest expense (19,318) (17,256) 12.0% (23,579) (18.1)%
------------- ------------ ------------- ------------ -------------
------------- ------------ ------------- ------------ -------------
Profit before taxation 184,187 171,697 7.3% 111,564 65.1%
Taxation - U.K. (19,391) (18,013) 7.7% (4,646) 317.4%
Taxation - outside of the U.K. (47,359) (45,417) 4.3% (35,273) 34.3%
------------ ------------- ------------ -------------
------------- ------------ ------------- ------------ -------------
Profit after taxation 117,437 108,267 8.5% 71,645 63.9%
Minority interests (376) (696) (46.0)% (376) n/a
------------- ------------ ------------- ------------ -------------
------------- ------------ ------------- ------------ -------------
Profit for the period attributable to
equity holders of the parent $117,061 $107,571 8.8% $71,269 64.3%
============= ============ ============= ============ =============
Earnings per share:
---basic $0.15 $0.14 $0.09
---diluted $0.15 $0.13 $0.09
Average shares outstanding:
---basic 783,232 790,847 793,822
---diluted 803,961 810,317 801,164
Ending Headcount 5,485 5,586 6,519
AMVESCAP PLC
Consolidated Balance Sheet
(Unaudited, in thousands)
June 30, 2006 December 31, 2005 June 30, 2005
---------------------- ---------------------- ----------------------
Non-current assets
Goodwill $4,344,949 $4,213,648 $4,225,081
Intangible assets 92,212 98,971 120,152
Property and equipment 176,068 180,044 205,095
Deferred sales commissions 67,574 78,944 95,330
Deferred tax assets 152,171 150,600 132,125
Investments 188,540 149,410 165,677
---------------------- ---------------------- ----------------------
5,021,514 4,871,617 4,943,460
Current assets
Trade and other receivables 993,948 749,181 769,956
Investments 85,322 31,272 129,564
Assets held for policyholders 1,328,861 1,170,804 944,806
Cash and cash equivalents 487,139 754,754 436,498
---------------------- ---------------------- ----------------------
2,895,270 2,706,011 2,280,824
Total assets 7,916,784 7,577,628 7,224,284
Current liabilities
Current maturities of long-term debt (309,745) (10,045) --
Trade and other payables (1,263,191) (1,290,202) (1,283,082)
Policyholder payables (1,328,861) (1,170,804) (944,806)
Provisions (49,120) (52,108) (45,967)
---------------------- ---------------------- ----------------------
(2,950,917) (2,523,159) (2,273,855)
Non-current liabilities
Long-term debt (977,295) (1,212,191) (1,176,248)
Deferred tax liabilities (23,511) (43,496) (32,621)
Provisions (157,146) (182,479) (176,733)
---------------------- ---------------------- ----------------------
(1,157,952) (1,438,166) (1,385,602)
Total liabilities (4,108,869) (3,961,325) (3,659,457)
Net assets $3,807,915 $3,616,303 $3,564,827
====================== ====================== ======================
Equity
Share capital $82,426 $81,811 $369,591
Share premium 135,714 84,968 1,289,166
Shares held by employee trusts (569,426) (413,473) (433,442)
Exchangeable shares 412,604 431,778 552,808
Retained earnings 797,450 638,739 622,183
Other reserves 2,944,647 2,789,187 1,161,648
---------------------- ---------------------- ----------------------
Equity attributable to equity holders of the parent 3,803,415 3,613,010 3,561,954
Minority interests 4,500 3,293 2,873
---------------------- ---------------------- ----------------------
Total equity $3,807,915 $3,616,303 $3,564,827
====================== ====================== ======================
AMVESCAP PLC
Consolidated Statement of Changes in Equity
(Unaudited, in thousands)
2006
-----------------------
December 31, 2005 $3,616,303
Profit for the period attributable to equity holders of
the parent 224,632
Currency translation differences on investments in
overseas subsidiaries 147,859
Losses on available-for-sale assets (13,098)
-----------------------
Total recognized income and expense attributable to equity
holders of the parent 359,393
-----------------------
Total equity before transaction with owners 3,975,696
Dividends (80,308)
Share-based payment charge 34,508
Issuance of new shares 32,900
Increase in shares held by employee share ownership trusts
(155,953)
Total amounts attributable to minority interests 1,072
-----------------------
June 30, 2006 $3,807,915
-----------------------
AMVESCAP PLC
Consolidated Cash Flow Statement
(Unaudited, in thousands)
Six Months Ended June 30,
--------------------------------------
----------------- --- ----------------
2006 2005
----------------- ----------------
Operating profit $378,338 $263,078
Amortization and depreciation 33,186 42,167
Interest paid, net of interest received and other investment income/losses (25,845) (38,265)
Taxation (126,766) (50,994)
Change in other assets and liabilities (325,810) (18,009)
----------------- ----------------
Net cash (outflow)/inflow from operating activities (66,897) 197,977
Investing activities:
Capital expenditures, net of sales (18,545) (19,064)
Purchase of long-term investments, net (50,447) (3,574)
Acquisitions (1,386) (2,357)
----------------- ----------------
Net cash outflow from investing activities (70,378) (24,995)
Financing:
Dividends paid (80,308) (74,981)
Net borrowings/(repayment of debt) 64,000 (205,476)
Purchase of shares (155,953) --
Issuance of new shares 31,738 744
----------------- ----------------
Net cash outflow from financing activities (140,523) (279,713)
Decrease in cash and cash equivalents (277,798) (106,731)
Foreign exchange 10,183 (3,699)
Cash and cash equivalents, beginning of period 754,754 546,928
----------------- ----------------
Cash and cash equivalents, end of period $487,139 $436,498
================= ================
Notes
1. Accounting policies
The accounting policies applied to the information in the earnings release
follow International Financial Reporting Standards in effect as of the date
of this release and are consistent with those applied in the 2005 Annual
Report. Refer to the 2005 Annual Report, available at www.amvescap.com, for
a more detailed discussion of these policies. The accounting policies
applied to the information in this earnings release are also consistent
with those that are expected to be applied in the 2006 Annual Report.
The interim financial information has been prepared under the measurement
and recognition principles of IFRS as permitted by the Committee of
European Securities Regulators and does not purport to be a complete or
condensed set of interim financial statements in accordance with IAS 34,
"Interim Financial Reporting".
2. Taxation
A significant proportion of the tax charge arose from U.S., U.K., and
Canadian operations. The effective rate is 36.6% for the six months
ended June 30, 2006 (the six months ended June 30, 2005: 35.8%).
3. Earnings per share
Basic earnings per share is based on the weighted average number of
ordinary and exchangeable shares outstanding during the respective periods,
excluding shares purchased and held by employee share ownership trusts.
Diluted earnings per share takes into account the effect of the potential
issuance of ordinary shares.
Six Months Ended June 30, 2006
---------------------------------------------------------------------
(in thousands) Profit for the period
attributable to equity Number of shares Per share
holders of the parent amount
---------------------------- ------------------- -----------------
Basic earnings per share $224,632 787,019 $0.29
=================
Dilutive effect of share-based awards -- 20,454
---------------------------- ------------------- -----------------
Diluted earnings per share $224,632 807,473 $0.28
============================ =================== =================
Six Months Ended June 30, 2005
---------------------------------------------------------------------
---------------------------------------------------------------------
(in thousands) Profit for the period
attributable to equity Number of shares Per share
holders of the parent amount
-----------------
---------------------------- ------------------- -----------------
Basic earnings per share $142,348 793,629 $0.18
=================
Dilutive effect of share-based awards -- 7,444
---------------------------- ------------------- -----------------
Diluted earnings per share $142,348 801,073 $0.18
============================ =================== =================
4. Acquisitions
On January 23, 2006, AMVESCAP announced the signing of a definitive
agreement to acquire PowerShares Capital Management LLC ("PowerShares").
The transaction, subject to certain conditions including approvals from the
shareholders of the exchange traded funds sponsored by PowerShares, is
expected to close in the third quarter of 2006. The initial purchase
consideration is estimated to be $100 million, to be paid at closing based
on PowerShares assets under management of greater than $5 billion.
Additional consideration of up to a maximum of $630 million is payable in
the future depending on the achievement of revenue growth targets.
On July 24, 2006, AMVESCAP announced the signing of a definitive agreement
to acquire WL Ross and Co. LLC. The initial purchase price consideration to
be paid at closing is estimated to be $100 million. Additional
consideration of between $30 million and $275 million is payable in the
future depending upon the achievement of annual fund launch targets over
the five years following the completion of the transaction. The transaction
is expected to close in the fourth quarter of 2006.
5. Dividends
A final dividend in respect of the 2005 year of 5.5p per share
(approximately $0.10 per share, or $80.3 million, at an exchange rate of
$1.78 per (pound)1.00: $78.1 million for ordinary shares and $2.2 million
for exchangeable shares) was approved at the Annual General meeting of
shareholders on April 27, 2006. This dividend was accrued on that date, and
a payment was made on May 4, 2006, to shareholders on the register on March
31, 2006.
The Board has declared an interim dividend in respect of the 2006 year of
$0.077 per share (2005: 4.0p or $0.074 per share), approximately $63.7
million based upon outstanding shares on June 30, 2006. The interim
dividend will be paid on October 11, 2006, to shareholders on the register
on September 8, 2006. The ex-dividend date for the dividend will be
September 6, 2006.
6. Statutory financial statements
The financial information shown in this earnings release is unaudited and
does not constitute statutory financial statements. The 2005 Annual
Report, which was filed with the Registrar of Companies on May 31, 2006,
includes an unqualified audit report in
accordance with Section 235 of the Companies Act 1985. This audit report
does not contain a statement under section 237(2) or section 237(3) of the
Companies Act 1985.
INDEPENDENT REVIEW REPORT TO AMVESCAP PLC
We have been instructed by the company to review the financial information for
the six months ended 30 June 2006 which comprises consolidated financial
statements such as the Consolidated Income Statement, Consolidated Balance
Sheet, Consolidated Statement of Changes in Equity, Consolidated Cash Flow
Statement, and the related notes 1 to 6. We have read the other information
contained in the interim report and considered whether it contains any apparent
misstatements or material inconsistencies with the financial information.
This report is made solely to the company in accordance with guidance contained
in Bulletin 1999/4 'Review of interim financial information' issued by the
Auditing Practices Board. To the fullest extent permitted by law, we do not
accept or assume responsibility to anyone other than the company, for our work,
for this report, or for the conclusions we have formed.
Directors' responsibilities
The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by, the directors. The directors
are responsible for preparing the interim report in accordance with the Listing
Rules of the Financial Services Authority which require that the accounting
policies and presentation applied to the interim figures should be consistent
with those applied in preparing the preceding annual accounts except where any
changes, and the reasons for them, are disclosed.
Review work performed
We conducted our review in accordance with guidance contained in Bulletin 1999/4
'Review of interim financial information' issued by the Auditing Practices Board
for use in the United Kingdom. A review consists principally of making enquiries
of group management and applying analytical procedures to the financial
information and underlying financial data, and based thereon, assessing whether
the accounting policies and presentation have been consistently applied, unless
otherwise disclosed. A review excludes audit procedures such as tests of
controls and verification of assets, liabilities and transactions. It is
substantially less in scope than an audit performed in accordance with
International Standards on Auditing (UK and Ireland) and therefore provides a
lower level of assurance than an audit. Accordingly we do not express an audit
opinion on the financial information.
Review conclusion
On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 30 June 2006.
Ernst & Young LLP
London
26 July 2006
AMVESCAP PLC
Quarterly Assets Under Management
--------------------------------------------- ------------------ --- ------------------ --- ----------------- --- ------------------
(in billions) Q206 Q106 % Change Q205
--------------------------------------------- ------------------ --- ------------------ --- ----------------- --- ------------------
--------------------------------------------- ------------------ --- ------------------ --- ----------------- --- ------------------
Beginning Assets $410.9 $386.3 6.4% $375.4
Inflows 23.5 23.1 1.7% 17.6
Outflows (21.2) (21.6) (1.9)% (23.3)
------------------ ------------------ ------------------
------------------ ------------------ ------------------
Net flows 2.3 1.5 53.3% (5.7)
Net flows in money market funds and other 2.2 7.4 (70.3)% 5.8
Market gains/reinvestment (6.2) 15.3 n/a 0.5
Foreign currency 4.6 0.4 n/a (2.8)
------------------ ------------------ ------------------
------------------ ------------------ ------------------
Ending Assets $413.8 $410.9 0.7% $373.2
================== ================== ==================
Average long-term AUM 357.5 347.7 2.8% 332.5
Average institutional money market AUM 57.1 53.6 6.5% 40.6
------------------ ------------------ ------------------
------------------ ------------------ ------------------
Average AUM $414.6 $401.3 3.3% $373.1
================== ================== ==================
Net revenue yield on AUM (annualized)(a) 56.7bps 58.2bps 58.7bps
Net revenue yield on AUM before performance
fees (annualized) 55.5bps 54.9bps 57.7bps
Private Wealth
By channel: (in billions) Total Retail Institutional Management
--------------------------------------------- ------------------ --- ------------------ --- ----------------- --- ------------------
March 31, 2006 $410.9 $202.9 $191.1 $16.9
Inflows 23.5 16.1 6.2 1.2
Outflows (21.2) (15.2) (4.6) (1.4)
------------------ ------------------ ----------------- ------------------
------------------ ------------------ ----------------- ------------------
Net flows 2.3 0.9 1.6 (0.2)
Net flows in money market funds and other 2.2 0.8 1.4 --
Market gains/reinvestment (6.2) (5.5) (0.4) (0.3)
Foreign currency 4.6 3.3 1.3 --
------------------ ------------------ ----------------- ------------------
------------------ ------------------ ----------------- ------------------
June 30, 2006 $413.8 $202.4 $195.0 $16.4
================== ================== ================= ==================
================== ================== ================= ==================
------------------------------ ----------- -- ----------- --- ----------- -- ----------- -- ----------- -- ----------- -- ----------
Fixed Money Stable Alter-
By asset class: (in billions) Total Equity Income Balanced Market Value natives
------------------------------ ----------- -- ----------- --- ----------- -- ----------- -- ----------- -- ----------- -- ----------
March 31, 2006(b) $410.9 $188.3 $52.8 $41.2 $59.4 $46.1 $23.1
Inflows 23.5 9.4 8.1 2.0 0.4 1.2 2.4
Outflows (21.2) (11.8) (4.4) (2.4) (0.7) (0.6) (1.3)
----------- ----------- ----------- ----------- ----------- ----------- ----------
----------- ----------- ----------- ----------- ----------- ----------- ----------
Net flows 2.3 (2.4) 3.7 (0.4) (0.3) 0.6 1.1
Net flows in money market
funds and other 2.2 -- -- -- 2.2 -- --
Market gains/reinvestment (6.2) (5.5) 0.4 (1.0) 0.1 -- (0.2)
Foreign currency 4.6 3.2 0.7 0.6 (0.1) -- 0.2
----------- ----------- ----------- ----------- ----------- ----------- ----------
----------- ----------- ----------- ----------- ----------- ----------- ----------
June 30, 2006 $413.8 $183.6 $57.6 $40.4 $61.3 $46.7 $24.2
=========== =========== =========== =========== =========== =========== ==========
------------------------------------------------------------------------------------------------------------------------------------
By client domicile: (in billions) Total U.S. Canada U.K. Europe Asia
------------------------------------------------------------------------------------------------------------------------------------
March 31, 2006 $410.9 $248.1 $43.3 $56.8 $37.8 $24.9
Inflows 23.5 8.8 0.9 3.0 7.3 3.5
Outflows (21.2) (10.3) (1.9) (2.3) (4.3) (2.4)
---------------- -------------- ------------- ---------------------------- -------------
Net flows 2.3 (1.5) (1.0) 0.7 3.0 1.1
Net flows in money market funds and other 2.2 1.9 0.2 -- 0.1 --
Market gains/reinvestment (6.2) (2.3) (1.7) (1.4) (0.3) (0.5)
Foreign currency 4.6 -- 1.8 2.1 1.6 (0.9)
---------------- -------------- ------------- ---------------------------- -------------
---------------- -------------- ------------- ---------------------------- -------------
June 30, 2006 $413.8 $246.2 $42.6 $58.2 $42.2 $24.6
================ ============== ============= ============================ =============
(a) Net revenue yield on AUM is equal to net revenue divided by average AUM.
(b)The asset class beginning balances were adjusted to reflect certain asset
reclassifications.
AMVESCAP PLC
Year-to-Date Assets Under Management
--------------------------------------------- ------------------ --- ---------------------- ---- ----------------
(billions) June 30, 2006 June 30, 2005 % Change
--------------------------------------------- ------------------ --- ---------------------- ---- ----------------
--------------------------------------------- ------------------ --- ---------------------- ---- ----------------
Beginning Assets $386.3 $382.1 1.1%
Inflows 46.6 34.8 33.9%
Outflows (42.8) (43.0) (0.5)%
------------------ ----------------------
------------------ ----------------------
Net flows 3.8 (8.2) n/a
Net flows in money market funds and other 9.6 (1.4) n/a
Market gains/reinvestment 9.1 4.4 n/a
Foreign currency 5.0 (3.7) n/a
------------------ ----------------------
Ending Assets $413.8 $373.2 10.9%
================== ======================
Average long-term AUM 352.2 335.0 5.1%
Average institutional money market AUM 55.3 41.0 34.9%
------------------ ----------------------
------------------ ----------------------
Average AUM $407.5 376.0 8.4%
================== ======================
Net revenue yield on AUM (annualized)(a) 57.5bps 57.7bps
Net revenue yield on AUM before performance
fees (annualized) 55.3bps 57.0bps
Private Wealth
By channel: (billions) Total Retail Institutional Management
--------------------------------------------- ------------------ --- ------------------ --- ----------------- --- ------------------
December 31, 2005 $386.3 $190.2 $179.8 $16.3
Inflows 46.6 32.5 11.7 2.4
Outflows (42.8) (29.6) (10.8) (2.4)
------------------ ------------------ ----------------- ------------------
Net flows 3.8 2.9 0.9 --
Net flows in money market funds and other 9.6 (0.2) 9.8 --
Market gains/reinvestment 9.1 5.9 3.1 0.1
Foreign currency 5.0 3.6 1.4 --
------------------ ------------------ ----------------- ------------------
June 30, 2006 $413.8 $202.4 $195.0 $16.4
================== ================== ================= ==================
Fixed Money Stable Alter-
By asset class: (billions) Total Equity Income Balanced Market Value natives
------------------------------ ----------- -- ----------- --- ----------- -- ----------- -- ----------- -- ----------- -- ----------
December 31, 2005(b) $386.3 $177.1 $48.8 $40.4 $52.2 $45.7 $22.1
Inflows 46.6 21.9 14.1 4.0 1.0 2.2 3.4
Outflows (42.8) (25.7) (7.0) (5.0) (1.6) (1.6) (1.9)
----------- ----------- ----------- ----------- ----------- ----------- ----------
----------- ----------- ----------- ----------- ----------- ----------- ----------
Net flows 3.8 (3.8) 7.1 (1.0) (0.6) 0.6 1.5
Net flows in money market
funds and other 9.6 -- -- -- 9.6 -- --
Market gains/reinvestment 9.1 7.0 0.8 0.3 0.1 0.4 0.5
Foreign currency 5.0 3.3 0.9 0.7 -- -- 0.1
----------- ----------- ----------- ----------- ----------- ----------- ----------
----------- ----------- ----------- ----------- ----------- ----------- ----------
June 30, 2006 $413.8 $183.6 $57.6 $40.4 $61.3 $46.7 $24.2
=========== =========== =========== =========== =========== =========== ==========
By client domicile: (in billions) Total U.S. Canada U.K. Europe Asia
------------------------------------------------------------------------------------------------------------------------------------
December 31, 2005 $386.3 $235.6 $42.2 $53.6 $32.0 $22.9
Inflows 46.6 16.3 2.1 5.9 15.1 7.2
Outflows (42.8) (20.2) (4.3) (4.7) (8.7) (4.9)
--------------- -------------- -------------- ------------- -------------- -------------
Net flows 3.8 (3.9) (2.2) 1.2 6.4 2.3
Net flows in money market funds and other 9.6 9.4 0.2 -- 0.1 (0.1)
Market gains/reinvestment 9.1 5.1 0.6 1.0 1.9 0.5
Foreign currency 5.0 -- 1.8 2.4 1.8 (1.0)
--------------- -------------- -------------- ------------- -------------- -------------
June 30, 2006 $413.8 $246.2 $42.6 $58.2 $42.2 $24.6
=============== ============== ============== ============= ============== =============
(a) Net revenue yield on AUM is equal to net revenue divided by average AUM.
(b) The asset class beginning balances were adjusted to reflect certain asset
reclassifications.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
AMVESCAP PLC
------------------------------
(Registrant)
Date 27 July, 2006 By /s/ Michael S. Perman
------------- --------------------------
(Signature)
Michael S. Perman
Company Secretary