Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

F&C cost cutting drives profit despite outflows

F&C cost cutting drives profit despite outflows

Underlying profits at F&C near doubled over the first half of the year compared to the same period of 2012, rising from £22.1 million to £37.3 million, despite assets under management falling 6%.

Underlying margin saw a similar sharp increase, from 26.8% to 37.6%, helping the group back into the black with a headline profit of £8.9 million, versus a £4.7 million loss previously.

At 8.55, shares in the company were up 3.7% or 3.5p to 97.9p, although still well below the high of above 110p which they reached earlier this year.

Chief executive Richard Wilson credited the gains to a combination of cost-cutting and an increasing flow of new business.

‘As a business F&C is now more competitive and more profitable and our strong investment performance will underpin delivery of continued revenue growth in our consumer and institutional business,’ he said.

Underlying earnings per share rose 66% on 2012 to 4.8p. Over the 12 months, 83% of assets managed by the group rose ‘above agreed client benchmarks’.

The fall in funds managed from £98.2 billion to £92.3 billion was primarily due to a previously announced removal of £6 billion by former parent company Friends Provident.  

Retail funds rose £200 million over the period, while third party institutional funds rose £500 million, but the wholesale business registered outflows of £300 million.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
When Brewin's Gutteridge met BlackRock's easy Rieder

When Brewin's Gutteridge met BlackRock's easy Rieder

Following Federal Reserve chair Janet Yellen’s testimony, Ben Gutteridge, head of fund research at Brewin Dolphin, grills Rick Rieder, CIO of fundamental fixed income at BlackRock.

Play Sam Vecht: the best opportunities in frontier markets

Sam Vecht: the best opportunities in frontier markets

Blackrock's Vecht evaluates frontier markets and explains where he sees the opportunities

Play Where A-rated Pattullo is finding the best bond opportunities

Where A-rated Pattullo is finding the best bond opportunities

Henderson Global Investors head of retail fixed income explains how he is managing his fund against the surprise current monetary policy divergence.

Your Business: Cover Star Club

Profile: meet the man building Towry into an £11bn giant

Profile: meet the man building Towry into an £11bn giant

As a former engineer who worked on Hong Kong International Airport, Rob Devey is not afraid of taking on major projects

Wealth Manager on Twitter