UK - F&C Asset Management expects to post net asset outflows of around £7.8bn (€11.5bn) in 2005 – excluding the previously announced €20bn insurance withdrawals.

The announcement follows the unexpected exit of former chief investment officer Tony Broccardo last month. Fernando Ribeiro took the new role of head of investments.

“Gross fund outflows, excluding insurance, for the final quarter of the year are estimated at £2.2bn,” F&C stated in a trading update.

“Total gross outflows, excluding insurance, for 2005 are therefore estimated at £7.8bn. The pattern of outflows, excluding the previously announced anticipated withdrawal of approximately £20bn by Resolution, is expected to continue into the start of 2006.”

The withdrawals will mean it will make a lower profit margin, down to 20 basis points from 21bps a year ago.

“While investment performance has stabilised or improved in a number of areas during 2005, there are some product areas where we are devoting further attention,” said incoming chief executive Alain Grisay.

“The poor three-year records in these areas have continued to lead to client outflows during the final quarter of the year.”

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