View the article online at http://citywire.co.uk/wealth-manager/article/a736011
F&C warns of revenue hit as assets plunge
by Robert St George on Feb 25, 2014 at 07:00
F&C has warned its investors that the decline in its assets under management (AUM) is likely to impact revenues.
In a letter to shareholders setting out the timetable for the BMO acquisition, F&C stated that ‘as a result of lower average AUM in the second half of 2013, revenues are expected to be lower than the first half of the year’.
For the first half of 2013, F&C generated revenues of £126 million on AUM of £92.3 billion.
But in January F&C revealed that its AUM had fallen by £8 billion during the final three months of 2013, following £10.4 billion of outflows from strategic partners. The group's AUM now stands at £82.1 billion.
However, F&C also advised shareholders today that its underlying operating costs from the second half of 2013 ‘are expected to be marginally lower than the first half of the year’.
F&C will publish its annual results for 2013 on 13 March, with the BMO deal to be put to shareholders at a meeting on 25 March.
News sponsored by:
As the UK coalition government strives to rebalance the national economy, so called 'reshoring' looks set to play an increasingly important role in economic recovery.
Today's top headlines
With talk on interest rates on the horizon, our latest roundtable debate covers income investing against a changing backdrop
More about this:
Look up the shares
More from us
On the road
on Jul 24, 2014 at 10:59