Gabelli Asset Management, which managers $28 billion for high net worth individuals and institutions in the US, reported a 20 per cent fall ...

Gabelli Asset Management, which managers $28 billion for high net worth individuals and institutions in the US, reported a 20 per cent fall in operating profit to $20.2 million during the first quarter of 2005 on the back of rising costs. Assets under management fell to $28 billion in the first quarter, a 2.1 per cent drop from the end-year 2004 figure. Costs during the first quarter rose to $13.5 million, up 37.5 per cent in one year. Gabelli blamed the higher costs on a one-time charge of $1.1 million “recorded for the impairment of goodwill related to our fixed income business”, higher compensation costs and extra compliance expenses associated with the Sarbanes-Oxley Act.