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F&C reports £4.9bn outflows led by Friends Life withdrawals

F&C has reported a net outflow of £4.9bn in the final quarter of 2012 following withdrawals from its strategic partner business and outflows from its cash management and government bond mandates.

The group announced a £3.6bn outflow from its strategic partner business, led by a £2.4bn withdrawal of fixed income assets from Friends Life. F&C says it expects a further £6.2bn of fixed income assets to be withdrawn in the next year.

There was also £956m of outflows from its institutional business, while a £340m outflow from its wholesale business has been largely put down to poor performance from the Thames River Global Credit funds.

There was more positive news for the retail and investment trust arms, which saw inflows of £19m and £11m respectively.

The group’s assets under management fell to £95.2bn at December 31, down from £96.8bn at the end of September.

F&C chief executive Richard Wilson says: “Performance in the quarter was good in most asset categories and revenue yields on inflows continue to exceed those on outflows.”

Hargreaves Lansdown investment analyst Rob Morgan says: “It’s not a huge surprise to see outflows. In terms of its retail range F&C is not really on our radar. Its bright spark is the Thames River multi-manager range.”

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