UK - F&C Management, the tenth largest manager of European pension fund assets, says its pre-tax profits for 2002 will rise 20% to 47 million euros – despite a 5% decline in revenues.

F&C, which manages 59.8 billion dollars in European pension fund assets, said in a statement: “Pre-tax profits before exceptional items will rise by 20% to 47 million euros.”

It added that revenues would decline by 5%, though costs would fall by 15%. A spokesman was unable to provide a breakdown of its revenues, though he said fees have increased. F&C is not a listed company and does not have to report earnings.

The news will come as a bright point for its owner, Netherlands-based financial services firm Eureko, which is undergoing management upheaval and multi-million euro losses.

“F&C attributes the relative stability of its revenue stream to the broad diversification of its business and clientele together with a healthy mix between fixed income and equity assets,” F&C said.

It said it received net new inflows of institutional business of 2.3 billion euros across Europe.

“This has been a good year for F&C,” said chief executive Bob Jenkins. “Margins are healthy and the talent base has been strengthened. We are well positioned to build on these achievements.”

F&C is part of troubled Eureko, which last month posted a third-quarter loss of 591 million euros and replaced its chief executive. Gijsbert Swalef is to take over as chief executive from Arnold Hoevenaars, who is leaving after barely a year in the job.

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