AMVESCAP Reports Results for Six Months Ended June 30, 2006.LONDON London, city, Canada London, city (1991 pop. 303,165), SE Ont., Canada, on the Thames River. The site was chosen in 1792 by Governor Simcoe to be the capital of Upper Canada, but York was made capital instead. London was settled in 1826. -- AMVESCAP (NYSE NYSE See: New York Stock Exchange :AVZ) (LSE LSE - Language Sensitive Editor :AVZ) (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension :AVZ) reported that profit before tax for the six months ended June June: see month. 30, 2006 amounted to $355.9 million (six months ended June 30, 2005: $222.4 million). Operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. 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 diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of was $0.28 for the six months ended June 30, 2006 (six months ended June 30, 2005: $0.18). "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 (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Martin L. Flanagan Flanagan may refer to: People named:
A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: 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 Ross , Sir Ronald 1857-1932. British physician. He won a 1902 Nobel Prize for proving that malaria is transmitted to humans by the bite of the mosquito. & Co. LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control , a recognized leader in financial restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). , will further deepen deep·en tr. & intr.v. deep·ened, deep·en·ing, deep·ens To make or become deep or deeper. deepen Verb to make or become deeper or more intense Verb 1. AMVESCAP's global capabilities and broaden the investment skills we make available for our clients."
Results for Six Results for Three Months
Months Ended Ended
--------------------- --------------------------
June 30, June 30, June 30, March June 30,
2006 2005 2006 31, 2005
2006
---------- ---------- -------- -------- --------
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 Net operating margin The ratio of net operating income to net sales. 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 Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. 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 December: see month. 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 The place where a deposit is placed and kept, e.g., a bank, savings and loan institution, credit union, or trust company. A place where something is deposited or stored as for safekeeping or convenience, e.g., a safety deposit box. account sponsored by our banking subsidiary being replaced by an unaffiliated investment fund. Dividend The Board has declared de·clare v. de·clared, de·clar·ing, de·clares v.tr. 1. To make known formally or officially. See Synonyms at announce. 2. To state emphatically or authoritatively; affirm. 3. an interim dividend of $0.077 per share (2005: 4.0p or $0.074 per share). The ex-dividend date Ex-dividend date The first day of trading when the buyer of a stock is no longer entitled to the most recently announced dividend payment ( i.e. the trade will settle the day after the record date, too late for the buyer to appear on the shareholder record and receive the dividend. for the dividend will be September September: see month. 6, 2006. The interim dividend will be paid on October October: see month. 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) is a term used by financial services companies in the mutual fund and money management or investment management business to gauge how much money they are managing. Assets under management (AUM Aum (ä·ōōmˑ), n.pr 1. in Ayurveda, the subtle, noiseless cosmic vibration in which consciousness existed in the beginning, before the elements appeared. ) 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 Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-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 align (  līn),v to move the teeth into their proper positions to conform to the line of occlusion. 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 re·new v. re·newed, re·new·ing, re·news v.tr. 1. To make new or as if new again; restore: renewed the antique chair. 2. efficiency. Internal measurement tools have been modified mod·i·fy v. mod·i·fied, mod·i·fy·ing, mod·i·fies v.tr. 1. To change in form or character; alter. 2. to help gauge gauge In manufacturing and engineering, a device used to determine whether a dimension is larger or smaller than a reference standard. A snap gauge, for example, is formed like the letter C, with outer “go” and inner “not go” jaws, and is used to effectiveness as we work to implement the strategic plans outlined as part of our year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. 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 Adv. 1. in the meantime - during the intervening time; "meanwhile I will not think about the problem"; "meantime he was attentive to his other interests"; "in the meantime the police were notified" meantime, meanwhile , the company continued to actively manage costs by focusing on spending and incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. 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 The liberation of an estate in real property from a mortgage. Redemption is the process by which land that has been mortgaged or pledged is bought back or reclaimed. It is accomplished through a payment of the debt owed or a fulfillment of the other conditions. 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 Exchange-traded funds (or ETFs) are Open Ended investment companies that can be traded at any time throughout the course of the day. Typically, ETFs try to replicate a stock market index such as the S&P 500 (e.g. (ETF ETF See Exchange Traded Fund. ETF See exchange-traded fund (ETF). ) provider, is scheduled to close in the third quarter. The ETFs offered by PowerShares will complement the fund lineup A criminal investigation technique in which the police arrange a number of individuals in a row before a witness to a crime and ask the witness to identify which, if any, of the individuals committed the crime. and expand the breadth Breadth The percentage of assets or stocks advancing relative to those unchanged or declining. Also the number of independent forecasts available per year. A stock picker forecasting returns to 100 stocks every quarter exhibits a breadth of 400, assuming each forecast is of products we can offer to our clients through AIM Investments. PowerShares fund assets Fund assets The total value of a portfolio's securities, cash, and other holdings, minus any outstanding debts. 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 INVESCO, (NYSE: IVZ) is an investment management company based in London, England, UK. It is quoted on the London Stock Exchange and is a member of the FTSE 100 Index. It has branches in 19 countries, but more than half of its business is in the United States. , AIM Trimark, Invesco Perpetual Invesco Perpetual is an investment company based in Henley-on-Thames, Oxfordshire, England. It was originally founded as by Sir Martyn Arbib and before it merged with Invesco it was known first as Perpetual Mutual then as Perpetual plc. 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 New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of and Toronto stock exchanges Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. 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 Thursday: see week. , July July: see month. 27, 2006, at 2:30 p.m. BST (convention) BST - British Summer Time. The name for daylight-saving time in the UK GMT time zone. (9:30 a.m. EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York 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 forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " under the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. 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 reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. 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 Subject to change; dependent upon or granted based on the occurrence of a future, uncertain event. A conditional payment is the payment of a debt or obligation contingent upon the performance of a certain specified act. 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 See .gov and GovNet. (networking) gov - The top-level domain for US government bodies. . AMVESCAP PLC Consolidated Income Statement consolidated income statement An income statement that combines the income statements of two or more organizations. As with other consolidated statements, a consolidated income statement eliminates any funds owed to or due from firms within the same group. (Unaudited, in thousands, other than per share amounts and headcount head count or head·count n. 1. The act of counting people in a particular group. 2. The number of people counted in this way. Noun 1. )
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
-------------- ---------- -----------
Revenues:
Management $625,894 $620,069 0.9%
Service and distribution 132,957 135,626 (2.0)%
Other 29,434 27,298 7.8%
-------------- ---------- -----------
Total revenues 788,285 782,993 0.7%
Third-party distribution,
service and advisory fees (200,233) (198,874) 0.7%
-------------- ---------- -----------
Net revenues 588,052 584,119 0.7%
-------------- ---------- -----------
Operating expenses:
Compensation 251,449 253,360 (0.8)%
Marketing 35,551 36,163 (1.7)%
Property and office 26,985 27,040 (0.2)%
Technology/telecommunications 30,099 32,065 (6.1)%
General and administrative 52,266 48,855 7.0%
-------------- ---------- -----------
Total operating expenses 396,350 397,483 (0.3)%
-------------- ---------- -----------
Operating profit 191,702 186,636 2.7%
Investment income 5,575 5,101 9.3%
Other income/(loss) 6,228 (2,784) n/a
Interest expense (19,318) (17,256) 12.0%
-------------- ---------- -----------
Profit before taxation 184,187 171,697 7.3%
Taxation - U.K. (19,391) (18,013) 7.7%
Taxation - outside of the U.K. (47,359) (45,417) 4.3%
-------------- ---------- -----------
Profit after taxation 117,437 108,267 8.5%
Minority interests (376) (696) (46.0)%
-------------- ---------- -----------
Profit for the period
attributable to equity holders
of the parent $117,061 $107,571 8.8%
============== ========== ===========
Earnings per share:
---basic $0.15 $0.14
---diluted $0.15 $0.13
Average shares outstanding:
---basic 783,232 790,847
---diluted 803,961 810,317
Ending Headcount 5,485 5,586
Q205 % Change
---------- -----------
Revenues:
Management $542,479 15.4%
Service and distribution 140,530 (5.4)%
Other 34,804 (15.4)%
---------- -----------
Total revenues 717,813 9.8%
Third-party distribution,
service and advisory fees (170,020) 17.8%
---------- -----------
Net revenues 547,793 7.3%
---------- -----------
Operating expenses:
Compensation 259,081 (2.9)%
Marketing 38,166 (6.9)%
Property and office 31,118 (13.3)%
Technology/telecommunications 36,934 (18.5)%
General and administrative 48,580 7.6%
---------- -----------
Total operating expenses 413,879 (4.2)%
---------- -----------
Operating profit 133,914 43.2%
Investment income 3,553 56.9%
Other income/(loss) (2,324) n/a
Interest expense (23,579) (18.1)%
---------- -----------
Profit before taxation 111,564 65.1%
Taxation - U.K. (4,646) 317.4%
Taxation - outside of the U.K. (35,273) 34.3%
---------- -----------
Profit after taxation 71,645 63.9%
Minority interests (376) n/a
---------- -----------
Profit for the period
attributable to equity
holders of the parent $71,269 64.3%
========== ===========
Earnings per share:
---basic $0.09
---diluted $0.09
Average shares outstanding:
---basic 793,822
---diluted 801,164
Ending Headcount 6,519
AMVESCAP PLC Consolidated Balance Sheet consolidated balance sheet A balance sheet in which assets and liabilities of a parent company and its controlled subsidiaries are combined, thereby presenting balance sheet items for the parent and its subsidiaries as if they were a single firm. (Unaudited, in thousands)
June 30, December June 30,
2006 31, 2005 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 con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: 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 International Financial Reporting Standards (IFRS) are standards and interpretations adopted by the International Accounting Standards Board (IASB). Many of the standards forming part of IFRS are known by the older name of International Accounting Standards (IAS). 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 IFRS International Financial Reporting Standard(s) IFRS Inter Frame Relay Service IFRS Indiana Facilities Registry System as permitted by the Committee of European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. Securities Regulators and does not purport To convey, imply, or profess; to have an appearance or effect. The purport of an instrument generally refers to its facial appearance or import, as distinguished from the tenor of an instrument, which means an exact copy or duplicate. PURPORT, pleading. to be a complete or condensed con·dense v. con·densed, con·dens·ing, con·dens·es v.tr. 1. To reduce the volume or compass of. 2. To make more concise; abridge or shorten. 3. Physics a. set of interim financial statements in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with IAS See iPlanet Application Server. 1. (computer) IAS - The first modern computer. It had main registers, processing circuits, information paths within the central processing unit, and used Von Neumann's fetch-execute cycle. 34, "Interim Financial Reporting". 2. Taxation A significant proportion of the tax charge arose from U.S., U.K., and Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. operations. The effective tax 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 Number Per
period of share
attributable to shares amount
equity holders
of the parent
---------------- -------- ------
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 Number Per
period of share
attributable to shares amount
equity holders
of the parent
---------------- -------- ------
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 January: see month. 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 Exchange Traded Funds (ETF) Also known as ETF. A basket of stocks similar to an index mutual fund. However, there are a number of important differences between ETFs and mutual 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 ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $0.10 per share, or $80.3 million, at an exchange rate of $1.78 per GBP GBP In currencies, this is the abbreviation for the British Pound. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 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 ac·crue v. ac·crued, ac·cru·ing, ac·crues v.intr. 1. To come to one as a gain, addition, or increment: interest accruing in my savings account. 2. 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 The introduction to this article provides insufficient context for those unfamiliar with the subject matter. Please help [ improve the introduction] to meet Wikipedia's layout standards. You can discuss the issue on the talk page. 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 Consolidated Financial Statements The combined financial statements of a parent company and its subsidiaries. Notes: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge 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 The Financial Services Authority ("FSA") is an independent non-departmental public body and quasi-judicial body that regulates the financial services industry in the United Kingdom. Its main office is based in Canary Wharf, London, with another office in Edinburgh. 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 dis·close tr.v. dis·closed, dis·clos·ing, dis·clos·es 1. To expose to view, as by removing a cover; uncover. 2. To make known (something heretofore kept secret). . 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 Analytical Procedures is one of financial audit skill which help an auditor understand the client's business and changes in the business, to identify potential risk areas and to plan other audit procedures. to the financial information and underlying financial data, and based thereon there·on adv. 1. On or upon this, that, or it. 2. Archaic Following that immediately; thereupon. Adv. 1. thereon - on that; "text and commentary thereon" on it, on that , 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 See verify. verification - The process of determining whether or not the products of a given phase in the life-cycle fulfil a set of established requirements. of assets, liabilities and transactions. It is substantially less in scope than an audit performed in accordance with International Standards on Auditing International Standards on Auditing (ISA) are professional standards for the performance of financial audit of financial information. These standards are issued by International Federation of Accountants. (UK and Ireland Ireland, Irish Eire (âr`ə) [to it are related the poetic Erin and perhaps the Latin Hibernia], island, 32,598 sq mi (84,429 sq km), second largest of the British Isles. ) 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 LLP - Lower Layer Protocol 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 56.7bps 58.2bps 58.7bps
(annualized)(a)
Net revenue yield on AUM before 55.5bps 54.9bps 57.7bps
performance fees (annualized)
----------------------------------------------------------------------
By channel: (in billions) Total Retail Institutional Private
Wealth
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
======= ======= ============= ===========
By asset class: (in billions) Total Equity Fixed Balanced
Income
----------------------------------------------------------------------
March 31, 2006(b) $410.9 $188.3 $52.8 $41.2
Inflows 23.5 9.4 8.1 2.0
Outflows (21.2) (11.8) (4.4) (2.4)
------- ------- ------- --------
Net flows 2.3 (2.4) 3.7 (0.4)
Net flows in money market funds and
other 2.2 -- -- --
Market gains/reinvestment (6.2) (5.5) 0.4 (1.0)
Foreign currency 4.6 3.2 0.7 0.6
------- ------- ------- --------
June 30, 2006 $413.8 $183.6 $57.6 $40.4
======= ======= ======= ========
By asset class: (in billions) Money Stable Alter-
Market Value natives
----------------------------------------------------------------------
March 31, 2006(b) $59.4 $46.1 $23.1
Inflows 0.4 1.2 2.4
Outflows (0.7) (0.6) (1.3)
------- ------ --------
Net flows (0.3) 0.6 1.1
Net flows in money market funds and other 2.2 -- --
Market gains/reinvestment 0.1 -- (0.2)
Foreign currency (0.1) -- 0.2
------- ------ --------
June 30, 2006 $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 Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. Assets Under Management
June June
30, 30,
(billions) 2006 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 55.3bps 57.0bps
fees (annualized)
----------------------------------------------------------------------
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
======= ======= ============= ===========
By asset class: (billions) Total Equity Fixed Balanced
Income
----------------------------------------------------------------------
December 31, 2005(b) $386.3 $177.1 $48.8 $40.4
Inflows 46.6 21.9 14.1 4.0
Outflows (42.8) (25.7) (7.0) (5.0)
------- ------- ------- --------
Net flows 3.8 (3.8) 7.1 (1.0)
Net flows in money market funds and
other 9.6 -- -- --
Market gains/reinvestment 9.1 7.0 0.8 0.3
Foreign currency 5.0 3.3 0.9 0.7
------- ------- ------- --------
June 30, 2006 $413.8 $183.6 $57.6 $40.4
======= ======= ======= ========
By asset class: (billions) Money Stable Alter-
Market Value natives
----------------------------------------------------------------------
December 31, 2005(b) $52.2 $45.7 $22.1
Inflows 1.0 2.2 3.4
Outflows (1.6) (1.6) (1.9)
------- ------ --------
Net flows (0.6) 0.6 1.5
Net flows in money market funds and other 9.6 -- --
Market gains/reinvestment 0.1 0.4 0.5
Foreign currency -- -- 0.1
------- ------ --------
June 30, 2006 $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. |
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