F&C sees outflows of £7.2 billion in 2011

F&C Asset Management has reported £7.2 billion of outflows in 2011 and has revealed that it is set to conclude the second part of its strategic review in May.

Assets under management fell 5.4% from £105.8 billion in 2010 to £100.1 billion in 2011, according to the group’s preliminary results. The group reported a profit after tax of £2.6m for 2011, compared to a loss of £13.4m in 2010.

It says that the £33.2m cost reduction programme is to be substantially achieved by the end of 2012.

Edward Bramson, executive chairman of F&C Asset Management, says: “The second phase of the strategic review, which will focus on the growth strategies for our retail, wholesale, investment trust and real-estate businesses, is progressing well and we expect to conclude this work in May.”

In October, it was announced that Alain Grisay, chief executive of F&C Asset Management, would be retiring in late 2012. The roles of chairman and chief executive will be separated again by the time of the 2013 annual general meeting.

It was also announced that £10.7m of savings are expected to be linked to redundancy payments, mainly among back office and corporate functions staff.

Performance-related management fees fell from £12.9m in 2010 to £11.8m for 2011. The firm says that the reduction in performance fees over the previous year partially reflected weaker investment performance in the second half of the year at Thames River, where the majority of products have performance fee potential.

It also says that the group is in the process of finalising its new fund pricing strategy.