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F&C sees £19 billion outflows but profits surge by 33%

F&C sees £19 billion outflows but profits surge by 33%
F&C Asset Management saw further outflows of £19 billion in 2013, but pre-tax profits rose by 33%.

The company saw £20.3 billion of ‘strategic partner’ assets withdrawn as contracts with third parties, including Achmea, Millenium BCP and Friends Life, expired and the funds withdrawn, resulting in a £35.3 million revenue hit.

On a brighter note, F&C saw net inflows of £1.3 billion in its consumer and institutional channel, up from a £1.9 billion outflow in 2012. Total assets under management fell from £95.2 billion to £82.1 billion.

Pre-tax profits rose from £51.9 million to £69.2 million year-on-year which helped push net debt down from £97.3 million to £76 million.

It has been an eventful year for F&C with the firm backing a takeover approach by BMO Global Asset Management in January.

Chairman Kieran Poynter (pictured) said: ‘The board recognises the progress that has been made in 2013 towards its strategic goals, but also the challenges that it faces in the future. The proposed transaction with BMO provides shareholders with an attractive premium against the medium-term standalone prospects and valuation of your company and the board has unanimously recommended that shareholders vote in favour of the acquisition.’

 

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Profile: The opportunity set that attracted Brett Williams to wealth management

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