The company’s assets under management (AUM) amounted to £96.8bn on 30 September, 2012, down 1.4% from the £98.2bn at the end of the previous quarter.
F&C said investment performance was positive and third-party institutional net inflows were “strong” during the quarter, but the fall in AUM was a result of foreign exchange effects and outflows from its strategic partner business.
Consumer and institutional AUM rose by £500m to £36.8bn over the quarter, driven by third-party institutional net inflows of £400m. However, the company’s strategic partner AUM dropped by £1.9bn, caused by previously announced withdrawals of £2.9bn of fixed-income assets by Friends Life.
Edward Bramson, executive chairman of F&C, said: “Inflows and performance in our third-party institutional business continue to be encouraging as we implement the strategies set out in our strategic review last October.”
Bramson added that the new management structure designed to carry out the firm’s consumer strategy has been put in place and initial revenues from its refocused direct-to-consumer marketing approach are expected to be seen in the first half of 2013.