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Strengthening sterling hits F&C’s AUM

F&C Asset Management has reported a £800m fall in assets under management for the year ended December 31, 2009.

Compared with the previous year when the group’s AUM stood at £98.6 billion, at the end of 2009 it had dropped to £97.8 billion.

In a statement to the stockmarket, Alain Grisay, the chief executive, said the strengthening of sterling against the euro had “an adverse impact” on AUM.

As at December 31, he said some 55% of its AUM was in euro-denominated portfolios.

In line with market expectations, F&C has maintained its dividend per share at 6p

Sales of third party mutual funds, namely the group’s Oeics and Sicavs, fell 31% compared with 2008, totalling £710m.

“Due to our fund range, we did not participate in the strong industry preference in 2009 for investment grade corporate bond products,” says Grisay.

Overall, on a statutory basis the group generated a pre-tax profit of £8.7m in 2009, versus a loss of £67.3m in 2008. On an underlying basis, the group made a profit of £28.3 million versus £37.3 million last year. (article continues below)

According to the group, the reduction earnings was principally down to lower interest and investment income earned on cash balances, given the low interest rates.

In line with market expectations, F&C has maintained its dividend per share at 6p.

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