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 warns of revenue hit as assets plunge

F&C warns of revenue hit as assets plunge

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.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Your Business: Cover Star Club

Profile: The godfather of fund-of-hedge-funds on the sector's future

Profile: The godfather of fund-of-hedge-funds on the sector's future

When Dixon Boardman started 26 years ago ‘there were 600 hedge funds and only 100 had $100 million – it was not even a cottage industry,’

Wealth Manager on Twitter