F&C Asset Management has revealed net outflows of £4.9bn during Q4 last year, predominantly driven by Friends Life withdrawing £2.4bn of fixed income to manage internally.
The asset manager said in a trading statement that Friends Life’s previously announced withdrawal of £2.4bn of fixed income assets managed by F&C was the largest contribution to outflows in the quarter.
And the firm said it expected Friends Life to withdraw a further £6.2bn of fixed income assets by mid-year, leaving F&C to manage £2.4bn for the life company.
Elsewhere, F&C reported gross outflows of £1.7bn from its third-party institutional business for the quarter, primarily attributable to cash management and government bond mandate losses of £1.3bn.
The majority of the remaining outflows resulted from £0.2bn of property asset realisations prior to year end.
Meanwhile, F&C reported gross third-party institutional inflows of £0.8bn in the quarter, taking the total for the year to £2.9bn. Meanwhile, it reported consumer and institutional investment performance of £1bn, or 2.8%, in the quarter.
In addition the group AUM stood at £95.2bn at 31 December down from £96.8bn as at 30 September, while consumer and institutional AUM at the end of the year was £36.8bn.
F&C chief executive Richard Wilson (pictured) said:“Performance in the quarter was good in most asset categories and revenue yields on inflows continue to exceed those on outflows. We look forward to continuing progress in executing our third-party institutional and consumer growth strategies.”