F&C Asset Management suffered net outflows of £1.5bn in the opening three months of the year after stronger retail flows were offset by strategic partner withdrawals.
The group’s interim management statement to 31 March shows £1.3bn was withdrawn from its strategic partners business. It adds that life company Achmea plans to withdraw £10.3bn from this area when its exclusivity terminates at the end of October.
F&C saw net inflows of £139m in its retail business over the three-month period although its wholesale business witnessed net outflows of £178m – mainly related to flows out of the Thames River Capital Global Credit, Global Bond and Multi-Alternative funds.
Despite posting outflows for the quarter, F&C’s assets under management rose 3.8 per cent over the three months from £95.2bn to £98.8bn. The group attributes this to more buoyant markets, strong investment performance and favourable foreign exchange trends.
F&C chief executive Richard Wilson says: “Good investment performance and favourable foreign exchange impacts combined with more buoyant markets increased assets under management to £98.8bn at quarter end.
“Gross flows into consumer and institutional of £1.6bn 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.”