F&C Asset Management reports £7.2bn outflow after investor withdraws
EUROPE - F&C Asset Management has reported £7.2bn (€8.7bn) in net outflows for 2011 after one of its investors decided to withdraw from the company, while one of its clients, the BCP pension scheme in Portugal, cancelled its mandate with the firm.
In a preliminary results statement, F&C Asset Management said the business saw overall net outflows of £7.2bn during the year due to “strategic partner outflows”.
It attributed the losses to the “underlying maturity profile” of some of its strategic partners’ insurance books, as well as market conditions in Portugal and Ireland.
The company added that the partial nationalisation of the BCP Pension Scheme in Portugal and the sale of Imperio France by Achmea deeply impacted its business.
F&C estimated the revenue lost from net outflows at as much as £11.9m last year.
At the beginning of 2011, one of the asset management company’s main investors - the Dutch insurer Achmea, formerly known as Eureko - sold its subsidiary, Império France, impacting F&C’s revenues.
Achmea is now seeking to withdraw from F&C.
The Dutch insurer has announced it is looking to sell the 9.6% stake it owns as part of its plan to reduce risk.
In addition to the move made by Achmea, F&C also had to face the loss of one of its clients, the BCP Pension Scheme in Portugal.
BCP’s decision occurred as the Portuguese government looked to transfer the assets of several pension schemes to the state Treasury.
In December last year, the government finally implemented new measures to that aim, transferring €6bn from the pension funds of four of country’s largest banks.
At that time, Helder Rosalino, secretary of state for public administration, said the government would use the assets to meet its budget-deficit target and pay part of the state’s debts currently held by banks.
Under the terms of the €78bn bailout plan the country received from the European Union and the IMF, Portugal must cut its deficit to 4.5% this year.