Friends Life to pull £2.3bn of assets from F&C

F&C Asset Management has told investors it expects to take a £2.3bn hit to its assets under management this year when Friends Life withdraws money from its annuities business.

F&C said in an update this morning its former backer has given it 12 months notice of the withdrawal of the assets. In the statement, F&C said:"On 9 November 2011 Friends Life announced its intention to launch an in-house asset management subsidiary in the second half of 2012. "Friends Life has since given F&C 12 months notice of its intention to withdraw £2.3bn of assets, principally in respect of its annuities fund, in December 2012." However F&C said the impact on current year revenues would be minimal. Elsewhere, the group reported total assets under management had fallen fr...