Wealth Manager - the site for professional investment managers

Register to get unlimited access to 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
Play Big City Bright Future

Big City Bright Future

Big City Bright Future, the brainchild of BlackRock, is a three-week work experience programme for school leavers looking to forge a career in the City.

Play Kames' Ennett: Trump good for US high yield, but beware Europe

Kames' Ennett: Trump good for US high yield, but beware Europe

Kames Capital’s head of high yield David Ennett believes the changing political landscape will be a positive for the US, but negative for Europe in 2017.

Play Philip Milburn: why inflation won't run out of control

Philip Milburn: why inflation won't run out of control

Kames bond fund manager views inflation as more of 'scare' than a 'problem' and is positioning his portfolios accordingly.

Read More
Your Business: Cover Star Club

Profile: from Batman Live to commodity beta

Profile: from Batman Live to commodity beta

Charteris may be a family affair, but the company is not at any risk of turning sentimental

Wealth Manager on Twitter