Several money management firms reported earnings information for the second quarter.
AMVESCAP reported $373.2 billion in assets under management as of June 30, down 0.6% from the previous quarter but up 0.4% from the year before, with the firm's U.S. mutual fund operations seeing the biggest outflows for the quarter.
AMVESCAP's profit before tax was %A3;60.3 million ($106.64 million) for the latest quarter, up 2% from March 31 but down 6.6% from June 30, 2004.
Speaking to analysts on the company's earnings call today, both Chairman Charles Brady and newly appointed President and CEO Martin Flanagan expressed confidence that AMVESCAP is positioned for recovery. Asked about reports that CI Financial has retained an investment bank to pursue a possible bid for AMVESCAP, Mr. Flanagan said he intends "to be here for 22 years," matching his stint at his previous employer, Franklin Resources.
Putnam Investments had $195 billion in assets under management as of June 30, down 2% from the previous quarter and down 8.5% from June 30, 2004, according to an earnings release by parent company Marsh & McLennan. Putnam's revenue for the latest quarter was $377 million, down 5.3% from the previous quarter and down 13% from the year before. Revenue for Marsh's consulting unit, Mercer Human Resource Consulting, for the latest quarter came to $687 million, up 17% from the previous quarter and up slightly from the year before. Marsh & McLennan doesn't break out the net profit contributions of its subsidiaries.
Marsh & McLennan's net profit for the quarter ended June 30 was $166 million, down 57% from the year before, and revenue slipped 2.2% to $3.1 billion.
Principal Financial Group reported record assets under management of $187.8 billion as of June 30, up 7.5% from $174.7 billion in the first quarter and 23% from $152.1 billion a year ago, according to a news release.
Principal's U.S. and international asset management and accumulation units had $173.1 billion in assets as of June 30, up 27% from last year and 8% from $160.2 billion in the first quarter.Principal reported that second-quarter operating earnings for asset management for the U.S. and international asset management and accumulation units jumped to $149.6 million, up 14% from last year and fractionally greater than $148.1 billion in the previous quarter.
In the U.S. and international segments, earnings growth was driven by increased fee revenue, the company said in a news release. In addition, $4 billion of the increase in the U.S. segment was the result of the acquisition of ABN AMRO Trust Services in the fourth quarter of 2004.
