The net negative results are due to outflows from strategic partner assets, with further outflows to come by December this year thanks to Friends Life giving F&C notice that it will withdraw £2.3bn of assets by the end of this year.
In its report released to the market this morning, F&C describes the resulting loss of £1.1m of annualised revenues as “minimal”.
The positive performance in Q4 added £2.5bn to the total assets held, offset by a net outflow of £0.2bn from open-ended funds and £3.9bn from strategic partners. This was further hampered by a decline in the sterling/euro exchange that had a further negative impact of -£1.6bn.
Overall, assets under management fell from £103.2bn at the end of September to £100.1bn at the end of December.
Edward Bramson, executive chairman, said: "We have made good progress on the strategy we set out in October, showing a modest net inflow, primarily in fixed income mandates, into our third-party institutional business and having a further £1.2bn of won but unfunded mandates in the pipeline."
