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F&C sees profits rise but assets drop

F&C Asset Management has announced a strong rise in profits in its 2013 annual results but suffered large outflows.

The group reported underlying profit before tax of £69.2m as at December 31 last year - 33 per cent higher than the £51.9m figure achieved at the same time in 2012.

But the profit rise came as assets dropped from £95.2bn at the end of 2012 to £82.1bn as at December 31 last year.

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The company saw nearly £19bn in net outflows but foreign exchange and positive performance across its range of products helped offset this.

The largest outflow was from the consumer and institutional part of the business which saw a £20.2bn net outflow from ‘strategic partners’.

F&C did say, however, that the cost reductions it had achieved were “in line” with its plan and that net debt had fallen to £76m from £97.3m at the end of 2012.

Richard Wilson, chief executive, said: “While 2013 has been a year of progress, we also acknowledge the financial headwinds that still face our business.

“The withdrawal of assets from strategic partners will continue to impact upon revenues, while the development of our consumer and institutional business will take time and investment.

“However, we will continue to put our customers at the centre of everything we do, delivering strong investment performance, client service and innovative solutions. Ultimately it is this that will support the company’s ambitious growth plans.”

F&C Asset Management is currently subject to a bid by Canadian financial services group BMO.