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.