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The company saw £20.3 billion of ‘strategic partner’ assets withdrawn as contracts with third parties, including Achmea, Millenium BCP and Friends Life, expired and the funds withdrawn, resulting in a £35.3 million revenue hit.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

 

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 Biotech Growth: we will ride out this storm

Biotech Growth: we will ride out this storm

Geoffrey Hsu of Biotech Growth Trust says the sell-off in biotechnology stocks represents a buying opportunity for long-term investors.

Play Picton: the UK property hotspots for rental income

Picton: the UK property hotspots for rental income

Picton Property Income CEO Michael Morris reveals how he is planning to ride the ‘ripple effect’ as UK economic growth spills out from the capital across the country.

Brewin's Foster talks financial crisis MkII with Allianz's Riddell

Brewin's Foster talks financial crisis MkII with Allianz's Riddell

This week Brewin Dolphin's head of research talks to Mike Riddell, fund manager at Allianz Global Investors, about the forces driving bonds markets in a tumultuous week for markets.

Your Business: Cover Star Club

Profile: PortfolioMetrix is on a mission to kill 'Frankenstein' systems

Profile: PortfolioMetrix is on a mission to kill 'Frankenstein' systems

In a buyers’ market for off-the-peg discretionary management, self-funded start-ups begin at an inherent disadvantage

Wealth Manager on Twitter