F&C reports £4.9bn outflow in Q4 and closes listed hedge fund

30 Jan 2013 | 08:06
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F&C Investments recorded a £4.9bn outflow in the fourth quarter of 2012, with AUM hit by strategic partner withdrawals and redemptions in its wholesale business.

F&C said the largest contribution to outflows in the quarter was the withdrawal of £2.4bn of fixed income assets managed for Friends Life, taking overall  strategic partner outflows to £3.6bn.

The firm reported a total net outflow of £1.3bn from its consumer and institutional business, within which the third-party institutional assets division shed £956m.

F&C recorded a £340m outflow from its wholesale business, with the most significant outflows coming from the Thames River Global Credit funds following a period of weak performance.

Overall for the year to 31 December 2012, the group saw a net outflow of £13.3bn.

This weighed on the group's AUM, which fell from £96.8bn to £95.2bn over the quarter.

However, on a more positive note the group's retail and investment trust arms recorded positive inflows of £19m and £11m respectively.

Richard Wilson, chief executive of the group, said performance in the consumer and institutional business generated AUM growth of £1bn or 2.8% over the quarter.

"Performance in the quarter was good in most asset categories and revenue yields on inflows continue to exceed those on outflows. We look forward to continuing progress in executing our third party institutional and consumer growth strategies," he added.

The firm has also announced plans to close its £56m Thames River Multi Hedge listed fund and return the cash to shareholders.

The fund, which is run by fund of funds veteran Ken Kinsey-Quick, is the latest in a long line of closures in the listed hedge funds sector, with groups including Cazenove also among those winding up similar funds.

"The board of directors of the Hedge+ Fund, a close- end fund of hedge funds categorised within our investment trust assets and managed by the Thames River Multi-alternative division, has announced it is conducting a managed run-down process and returning assets to shareholders," the group said.

Edward Bramson (pictured), executive chairman of F&C, has made a series of cost reductions since 2010, totalling around £33m, as part of a plan to streamline the business.

Categories: Investment

Topics: F&c

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