institutional outflows hurt fandcs aum

F&C’s group assets under management fell by over £1bn in the final quarter of 2012 from £96.8bn to £95.2bn chiefly due to outflows from its institutional business.

institutional outflows hurt fandcs aum


Gross outflows from the group’s third-party institutional business reached £1.7bn in the quarter and were mainly redeemed from cash management and government bond mandates. Third-party institutional funds saw gross inflows of £0.8bn during the quarter taking its total for the year up to £2.9bn.

Meanwhile, net retail flows were positive for the quarter at £19m plus £11m into investment trusts.

However, a closed end funds of hedge funds managed by managed by the Thames River Multi-alternative division and categorised in the firm’s investment trust assets, has announce it is closing and returning assets to shareholders.

F&C said at 31 December its AUM included approximately £56m of assets in respect of this fund.

In its wholesale business F&C reported net outflows of £300m, with the most significant outflows from the Thames River Global Credit funds following a period of weak performance.

Strategic Partner assets under management also declined in the period, from £60bn to £58.5bn. The largest contribution to outflows in the quarter was £2.4bn of fixed income assets redeemed by Friends Life.

F&C said it predicted Friends Life would withdraw a further £6.2bn of fixed income assets during the year as it has announced its intention to manage such assets internally.


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