LONDON (ShareCast) - F&C Asset Management reported a drop in assets under management in the first-quarter due to significant challenges of volatile equity markets, illiquid credit conditions and a general deterioration in retail investor sentiment.
Assets under management fell to £101.8bn as at 31 March compared with £103.6bn in the previous quarter.
Despite market conditions, UK retail funds gross sales increased 12% to £168m, while gross sales of international wholesale funds rose to £298m in the quarter compared with full year sales of £201m in 2007.
The group said while adverse market conditions and the resolution of its long-term ownership are likely to impact the timeline of delivery for its three-year plan, it remains committed to the overall strategic direction outlined last year.
“We have a clear strategy and against the backdrop of volatile markets and investor uncertainty we have continued to demonstrate strong progress in our higher margin retail and wholesale businesses, in-line with that strategy,” said chief executive Alain Grisay.
“In the institutional market while we continue to win new business our sales are being impacted in the short-term by the current period of corporate uncertainty.”
“We believe the group will increase its rate of progress once market conditions stabilise and our long term ownership is resolved,” he added.
Friends Provident is looking to sell its 52% holding in the asset management company as part of a strategic review.
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