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Company F&C Asset Management PLC
TIDM FCAM
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Interim Management Statement

Released 07:00 28-Jan-2014
Number 6509Y07

RNS Number : 6509Y
F&C Asset Management PLC
28 January 2014
 



 

28 January 2014

The F&C Asset Management plc Group ("F&C" or "the Group") is today updating the market on its 31 December 2013 Assets Under Management ("AUM") and business flows for the fourth quarter of 2013.  Except where otherwise specified, the data in this statement covers the three and twelve-month periods to 31 December 2013.

 

Highlights

 

·     Group AUM of £82.1 billion as at 31 December 2013 (30 September 2013: £90.1 billion)

 

·     Positive inflow momentum continued in Consumer and Institutional.  Net inflows in the quarter of £771 million take total net inflows for the year to December 2013 to £1,255 million (2012 - net outflows of £1,913 million)

 

·     Strong performance from Retail, with net inflows of £200 million in the quarter taking total Retail net inflows for the year to £585 million (2012 - Q4 net inflows of £19 million and full year net outflows £60 million)

 

·     Institutional net flows increased significantly to £706 million in the quarter and £1,163 million for the full year (2012 - Q4 net outflows of £956 million and full year net outflows £711 million)

 

·     The previously announced withdrawal of Achmea own risk assets substantially accounted for the overall Strategic Partner net outflows of £10.4 billion in the fourth quarter

 

 

Richard Wilson, Chief Executive, commented:

 

"It is encouraging to note the progress being made as our strategy, focused on winning new assets in the Consumer and Institutional business, showed strong momentum in the fourth quarter including the funding of previously announced institutional mandates; that F&C has transformed new business from net outflows of £1.9 billion in 2012 to net inflows of £1.3 billion in 2013 is a validation of the progress being made."

 

 

Assets Under Management

 

Fund flows from the Consumer and Institutional business were strongly positive in the fourth quarter at £771 million, taking net inflows for the full year to £1,255 million.  During the quarter, strong net inflows in Third-Party Institutional and Retail assets were partially offset by net outflows in Wholesale and Investment Trust assets.

 

The previously announced withdrawal of Achmea own risk assets during the fourth quarter led to Strategic Partner net outflows of £10.4 billion and contributed to Strategic Partner net outflows of £20.3 billion for the full year (2012 - net outflows £11.4 billion).

 

Consequently, overall AUM declined by £8.0 billion for the quarter. This quarterly AUM movement included a £1.8 billion positive impact from market movements partially offset by a £0.2 billion negative impact arising from the strengthening of sterling.

 

AUM in our Consumer business, which comprises Retail and Investment Trusts, grew by £611 million during the quarter.  Retail continued its strong performance with a fifth consecutive quarter of net inflows, demonstrating continued growth in both gross and net flows.  Gross Consumer inflows during the quarter were £647 million and net flows were £169 million.  This business continues to build momentum and capitalise on areas of strong investment performance.  We saw very strong inflows from the F&C SICAV fund range, with particular growth in our European Smaller Companies and Global Convertible Bond Funds. There was also continued positive momentum in our Multi-Manager range of funds, notably the F&C MM Navigator Distribution Fund.

 

Our Investment Trust business continues to perform well with five of our Trusts issuing a total of £23 million of new shares during the quarter.  The decision to reduce the gearing of the Foreign and Colonial Investment Trust accounted for an outflow of £50 million in the quarter, thus leading to an overall net outflow of £31 million of Investment Trust assets for the period.  During 2013 eight of our Trusts have issued new shares and net issuance of £106 million is the highest in recent years.

 

Third-Party Institutional flows increased sharply during the quarter with net inflows of £706 million, resulting in cumulative net inflows of £1,163 million for the full year (2012 - Q4 net outflows £956 million / full year outflows £711 million). Specific highlights of the quarter included several new LDI and Fiduciary mandates funded, as well an Emerging Market Equity mandate.  The substantial gross flows of £1,946 million during the quarter were funded from the existing pipeline of new business, and shows the ability to translate the unfunded pipeline into new AUM.  As a result of these significant inflows during the quarter the awarded but unfunded pipeline has fallen to £0.7 billion at 31 December 2013 (30 September 2013: £1.8 billion, 31 December 2012 £0.8 billion).

 

It was disappointing to note further wholesale net outflows during the quarter of £104 million, leading to net outflows of £427 million for the full year (2012 - net outflows £1,162 million). The majority of these outflows were from The Macro Global Bond Funds.

 

Offer from Bank of Montreal

F&C also announces today that agreement has been reached on the terms of a recommended cash acquisition by which the entire issued and to be issued ordinary share capital of F&C will be acquired by BMO Global Asset Management (Europe) Limited, a wholly-owned subsidiary of Bank of Montreal. Further information on the recommended offer is included in the separate announcement also released today.

 

 

Contacts:

 

F&C Asset Management plc

 

David Logan                  Chief Financial Officer               +44 (0) 20 7011 4272                      david.logan@fandc.com 

 

F T I Consulting

 

Neil Doyle                      Managing Director                      +44 (0) 20 7269 7237                     neil.doyle@fticonsulting.com 



Assets Under Management

 

The tables below disclose AUM at 31 December 2013 and fund flows for the three and twelve months to 31 December 2013.

 

1.   Summary of AUM and fund flows

 

a)   Twelve months to 31 December 2013

Client Category

AUM

1 January 2013

£m

Jan - Dec

Net flows

£m

FX

£m

Performance

£m

AUM

31 December

2013

£m







Investment Trusts

5,996

(66)

4

767

6,701







Retail

5,017

585

10

487

6,099

Consumer

11,013

519

14

1,254

12,800







Wholesale

1,316

(427)

10

29

928







Third-Party Institutional

24,421

1,163

315

177

26,076

Consumer & Institutional

36,750

1,255

339

1,460

39,804







Strategic Partners

58,475

(20,250)

1,184

2,901

42,310







Total

95,225

(18,995)

1,523

4,361

82,114

 

b)   Quarter to 31 December 2013

Client Category

AUM

1 Oct 2013

£m

Oct - Dec

Net flows

£m

FX

£m

Performance

£m

AUM

31 December

2013

£m







Investment Trusts

6,484

(31)

(1)

249

6,701







Retail

5,705

200

(17)

211

6,099

Consumer

12,189

169

(18)

460

12,800







Wholesale

1,031

(104)

(8)

9

928







Third-Party Institutional

25,350

706

(120)

140

26,076

Consumer & Institutional

38,570

771

(146)

609

39,804







Strategic Partners

51,515

(10,384)

(23)

1,202

42,310







Total

90,085

(9,613)

(169)

1,811

82,114

 



2.   Fund flows

 

a)   Fund flows for the twelve months to 31 December 2013

Client Category

Inflows

£m

Outflows

£m

Net Flows

£m





Investment Trusts

137

(203)

(66)





Retail

2,056

(1,471)

585

Consumer

2,193

(1,674)

519





Wholesale

278

(705)

(427)





Third-Party Institutional

5,149

(3,986)

1,163

Consumer & Institutional

7,620

(6,365)

1,255





Strategic Partners

2,854

(23,104)

(20,250)

 Total

10,474

(29,469)

(18,995)

 

b)   Fund flows for the quarter to 31 December 2013

Client Category

Inflows

£m

Outflows

£m

Net Flows

£m





Investment Trusts

25

(56)

(31)





Retail

622

(422)

200

Consumer

647

(478)

169





Wholesale

29

(133)

(104)





Third-Party Institutional

1,946

(1,240)

706

Consumer & Institutional

2,622

(1,851)

771





Strategic Partners

587

(10,971)

(10,384)

Total

3,209

(12,822)

(9,613)

 

 

3.    AUM by client category


31 December

30 September

31 December

2012

2013

2013

In Sterling

£bn

£bn

£bn





Investment Trusts

6.0

6.5

6.7





Retail

5.0

5.7

6.1

Consumer

11.0

12.2

12.8





Wholesale

1.3

1.0

0.9





Third-Party Institutional

24.5

25.4

26.1

Consumer & Institutional

36.8

38.6

39.8





Strategic Partners

58.4

51.5

42.3

Total

95.2

90.1

82.1

 


31 December

2012

30 September

2013

31 December

2013

In Euro 

€bn

€bn

€bn





Investment Trusts

7.4

7.8

8.1





Retail

6.2

6.8

7.3

Consumer

13.6

14.6

15.4





Wholesale

1.6

1.2

1.1





Third-Party Institutional

30.2

30.4

31.4

Consumer & Institutional

45.4

46.2

47.9





Strategic Partners

72.1

61.6

50.8

Total

117.5

107.8

98.7

 



4.   AUM by asset class

 

In Sterling

31 December

2012

£bn

30 September

2013

£bn

31 December

2013

£bn





Fixed Interest

56.3

49.3

40.9





Equities

25.7

27.4

28.3





Property

7.5

7.2

7.3





Alternative Investments

1.2

1.1

1.0





Liquidity

4.5

5.1

4.6

Total

95.2

90.1

82.1

 

 

In Euro

31 December

2012

€bn

30 September

2013

€bn

31 December

2013

€bn





Fixed Interest

69.5

59.0

49.2





Equities

31.8

32.8

34.0





Property

9.2

8.6

8.8





Alternative Investments

1.5

1.3

1.2





Liquidity

5.5

6.1

5.5

Total

117.5

107.8

98.7

 

 

 

 

 

                                                                                                                              


This information is provided by RNS
The company news service from the London Stock Exchange
 
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Interim Management Statement - RNS