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F&C faces further £6.2 billion outflow to Friends Life in 2013

by Rachael Revesz on Jan 30, 2013 at 10:37

F&C faces further £6.2 billion outflow to Friends Life in 2013

Friends Life will remove a further £6.2 billion of assets from fund group F&C as the life company draws more assets under its own stewardship.

F&C was hit with £2.4 billion worth of outflows of fixed income assets from Friends Life last quarter.

Despite anticipating further withdrawals from Friends Life, F&C said the impact would be moderated as assets are not expected to be withdrawn until mid-year. After this year’s outflows, F&C said it expected to manage a remaining £2.4 billion of fixed income assets for Friends Life.

Friends Life created an in-house investment arm in July last year, and is undergoing a restructure of its business.

As a whole, the F&C Group saw its assets decrease last quarter from £96.8 billion to £95.2 billion.

However, the retail and investment trust arms saw positive inflows of £19 million and £11 million respectively.

Performance in the consumer and institutional business also saw positive assets under management growth of £1 billion last quarter, partially due to the euro strengthening against sterling.

Chief executive Richard Wilson said: ‘Performance in the quarter was good in most asset categories and revenue yields on inflows continue to exceed those on outflows. We look forward to continuing progress in executing our third-party institutional and consumer growth strategies.’

1 comment so far. Why not have your say?

Hickky

Jan 30, 2013 at 10:57

So someone who purchased these F&C managed funds could have been sold them on the basis of out of house investment management, using specialists. Now they are taking the investment management in house, thus creating a dilemma for some advisers, weather you should take the fund elsewhere (and suffer all the post RDR nonsense) or leave it. It looks like a fine time to look in depth at holdings in Friends Life and see it they are still relevant to the client's needs. I will be starting client reviews following this news.

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