F&C Asset Management saw assets under management (AUM) dropped by £1.4bn from £98.2bn to £96.8bn during the three months to 30 September 2012, due to foreign exchange effects and outflows of strategic partner assets.
Despite net inflows of £500m into its consumer and institutional business during the third quarter, increasing to £36.8bn, its strategic partner business saw assets under management drop by £2bn, with £3.8bn in outflows offset by positive investment performance of £2.4bn.
Outflows from the strategic partners business, included £2.9bn redemption by former parent company Friends Life.
Executive chairman Edward Bramson says: “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.”
F&C also announced it has put in place a new management structure to implement the consumer strategy set out earlier this year.