F&C sees net inflow but faces £10m legal bill

F&C Asset Management saw net flows into its products turn positive in the first six months of the year, but faced a £10m payout for a lost legal dispute with the founders of its fund of hedge funds arm.

In its results for the six months ended 30 June 2011, F&C reported net flows of £800m, compared to a net outflow of £300m in the first half of 2010. Assets under management climbed from £105.8bn to £108bn, supported by positive returns from investments and the strengthening of the euro versus sterling, the group said. Pre-tax profit was £22.6m, up from £14.6m the previous year. Net revenues increased from £106.8m to £137m, driven by the performance of Thames River funds. This part of the business accounted for £5.4m of the total £5.9m generated in performance fees over the period. ...