UPDATE 1-F&C assets slip as client withdrawals continue

Wed Jan 30, 2013 8:01am GMT

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* Group assets under management at 95.2 bln stg, from 96.8 bln end Q3

* Net outflows 4.897 bln stg during third quarter

LONDON Jan 30 (Reuters) - F&C Asset Management said it suffered net outflows of 4.89 billion pounds during the last quarter of 2012, largely due to planned withdrawals of fixed income assets by a big client.

Assets under management at the fund manager stood at 95.2 billion pounds at the end of the year, it said in a trading statement on Wednesday, slipping from 96.8 billion pounds three months earlier.

Of the outflows, 3.6 billion pounds were from strategic partners, mostly on account of 2.4 billion pounds withdrawn by client Friends Life which is taking management of fixed income assets in house.

The wholesale business also experienced a 340 million pounds net outflow over the three month period, mostly from the Thames River Global Credit funds following a period of weak investment performance.

Also contributing to the slippage in assets was a 956 million pounds net outflow from the third party institutional business which the company blamed on losing cash management and government bond mandates.

Other businesses saw net increases in the money they run, however.

The consumer business saw a net inflow of 30 million pounds in the quarter while retail and investment trusts saw net inflows 19 million pounds and 11 million pounds respectively.

"Performance in the quarter was good in most asset categories and revenue yields on inflows continue to exceed those on outflows. We look forward to continuing progress in executing our third party institutional and consumer growth strategies," Chief Executive Richard Wilson said in a statement.

The 144-year old firm is currently undergoing a far reaching shake up under Executive chairman Edward Bramson, an activist investor who won control in a controversial management coup in 2011.

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