F&C ousts chairman, replaces him with activist shareholder

UK - F&C shareholders have ousted chairman Nick MacAndrew and replaced him with Edward Bramson, head of activist shareholder Sherborne.

The decision to remove MacAndrew was carried with 65% of shareholders at an EGM - 70% voted to replace him with Bramson. He brings with him two new directors - Ian Brindle and Derham O'Neill.

The decision marks an end to a protracted public struggle during which Bramson accused the current management of a lack of financial discipline and attacked its bolt-on acquisition strategy.

The board of F&C, which has £108bn (€127.8bn) in assets under management, in turn accused 18% shareholder Bramson of misunderstanding the business and questioned his investment record.

Dutch insurer Eureko - which owns 10% of the company, has contributed £20bn of its assets and is its largest client - said it was not in shareholders' interests to create uncertainty.
Aviva Investors, the third-largest shareholder, backed Bramson.

Today it said in a statement: "It is in the interest of all parties that F&C continues to serve its clients in the best manner possible by delivering high-quality investment services in which stability plays an important role.

"Eureko reiterates its continued commitment to work together with F&C to preserve this stability."

F&C chief executive Alain Grisay said: "Shareholders have spoken clearly, and we respect their decision."

Bramson in turn promised to bring a "fresh perspective" to the company's strategic direction.