F&C launches strategic review despite return to inflows

F&C Asset Management has launched a strategic review of the business, despite reporting a return to net inflows for the first time in four years.

The group, which acquired Thames River last year, also reported a climb in operating profits, revenues and assets under management for 2010. However, a review has been launched to ensure 'building blocks to recovery' are in place.  

Revenues rose from £225.1m to £243.2m, while assets under management climbed from £97.8bn to £105.8bn.

Inflows were £272m (ex-insurance), compared to 2009's net outflow of £3.74bn while group operating profits rose to £69.2m, up from £59.9m.

Grisay says: "Major building blocks for a recovery have been put in place. To ensure we maximise the delivery of value to shareholders the board will review F&C's strategy over the coming months."

He adds: "Encouragingly we saw a return to net inflows ex-insurance after four years of net outflows, and a 77.5% increase in gross new business to £6.1bn."

Activist investor and new chairman Edward Bramson, who led a successful takeover of the board earlier this year, is now embarking on a series of cost-cutting measures.

The group announced today that as part of this restructure it will cut operations staff headcount by around 70% after agreeing an outsourcing deal.