London-based F&C Asset Management has reported £7.2bn of net outflows for 2011, during a tough year for the group as activist investor Edward Bramson seeks to turnaround the firm’s fortunes.
Earlier this year F&C told investors it expects to take a further £2.3bn hit to its assets under management this year when Friends Life withdraws money from its annuities business.
However, brokers at Société Générale are confident costs will fall as Bramson implements his programme.
“These results are only one point in F&C’s longer-term turnaround and the effect of the cost cuts will not have an impact on the business until this and next year’s annual results,” said the broker.
“However, having risen 20% since its January lows, we do see some risk of profit taking.”
The second and final part of Bramson’s strategic review into the asset management business will take place in May, when he will outline his plans for F&C’s fund management and investment trust business.
This article was first published on Investment Week