F&C posts £1.5bn Q1 outflow after more strategic partner withdrawals

F&C Asset Management has reported a £1.5bn net outflow for the first quarter of 2013 as strategic partner withdrawals offset improved retail flows.

A total outflow of £1.3bn from strategic partners dampened the first quarter update, to the end of March, despite the group’s AUM rising 3.6%, from £95.2bn to £98.8bn, over the period.

F&C noted that buoyant markets, favourable foreign exchange trends and investment performance were key drivers in the firm’s AUM rising over the period.

Net retail fund inflows stood at £139 million, up from £19m in Q4 2012, which F&C put down to a successful refocus of its sales and marketing organisation.

The core consumer and institutional business grew AUM by 5.4% over the three months to £38.8 billion.

However, a less positive note saw the group report wholesale net outflows of £178m after withdrawals from its Thames River Capital Global Credit, Global Bond and Multi-Alternative funds.

Richard Wilson, the group’s chief executive, said the retail flows were a highlight over the quarter.

“Good investment performance and favourable foreign exchange impacts combined with more buoyant markets increased Assets under Management to £98.8 billion at quarter end,” he said.

“Gross flows into consumer & institutional of £1.6 billion continue to be encouraging and retail flows were a particular highlight. Strategic partner assets performed satisfactorily and we expect further clarity on the future profile of this business as the year progresses.”

F&C added that Achmea, the life company for which it manages £25bn in assets, will withdraw £10.3bn worth of mandates when an exclusivity period ends in October 2013.

In the update the group confirmed Charlie Porter will take a seat on the F&C board as a non-executive director after today’s AGM.

Porter, co-founder of Thames River Capital, left the business last year to pursue other opportunities.

Meanwhile, Ian Brindle and Jeff Medlock will retire from the board today once the AGM is concluded.


This article was first published on Investment Week

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