View more on these topics

F&C reports £7.2bn of outflows in 2011

F&C Asset Management has reported £7.2bn of outflows in 2011 and has revealed that it is set to conclude the second part of its strategic review in May.

Assets under management fell 5.4 per cent from £105.8bn in 2010 to £100.1bn in 2011, according to the group’s preliminary results. The group reported a profit after tax of £2.6m for 2011, compared to a loss of £13.4m in 2010.

It says that the £33.2m cost reduction programme is to be substantially achieved by the end of 2012.

F&C Asset Management executive chairman Edward Bramson says: “The second phase of the strategic review, which will focus on the growth strategies for our retail, wholesale, investment trust and real-estate businesses, is progressing well and we expect to conclude this work in May.”

In October, it was announced that F&C Asset Management chief executive Alain Grisay would be retiring in late 2012.  The roles of chairman and chief executive will be separated again by the time of the 2013 annual general meeting.

It was also announced that £10.7m of savings are expected to be linked to redundancy payments, mainly among back office and corporate functions staff.

Performance-related management fees fell from £12.9m in 2010 to £11.8m for 2011. The firm says that the reduction in performance fees over the previous year partially reflected weaker investment performance in the second half of the year at Thames River, where the majority of products have performance fee potential.

It also says that the group is in the process of finalising its new fund pricing strategy.



FSA repeats provider influence concerns

The FSA has again raised concerns about product providers’ influence on advisers and the emergence of potential biases post-RDR. In the FSA’s retail conduct risk outlook, published today, the regulator reiterated concerns it raised in last year’s outlook around provider influence, sales biases and ongoing services. The FSA says providers could look to offer inducements […]

Aon and Axa to provide PII cover for advisers.

Aon Risk Solutions has agreed a deal with Axa Commercial Lines to provide professional indemnity insurance for independent financial advisers in the UK. The cover will be sold through the Aon branch network with Aon also binding and issuing policy documentation under a limited delegation of authority. The firms say the cover is being provided […]

Fears raised over strategic bond allocations

TM Darwin founder David Jane has warned multi-asset funds that invest heavily in strategic bonds may not offer investors sufficient diversification. Jane, who runs the £11m multi-asset fund, says strategic bond managers are investing in equity because it is cheaper than high yield. He says: “A lot of multi-asset funds are constructed of strategic bond […]


FSA sounds misselling risk over absolute return funds

The FSA says absolute return funds pose a misselling risk as advisers may not have a proper understanding of the products. The regulator’s latest Retail Conduct Risk Outlook paper, published today, says consumers may not understand the complexities of absolute return funds and may believe there is an element of capital protection, or guarantee of […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm