31st Jan 2007 07:01
F&C Asset Management PLC31 January 2007 To: London Stock Exchange Attention: RNS Date: 31 January 2007 From: F&C Asset Management plc (FCAM) Assets Under Management, Business Flows and Outlook The tables below disclose Assets Under Management (AUM) at 31 December 2006 andFund flows for the full year to 31 December 2006. 1. Assets Under Management 31 December 2006 30 September 31 December 2005 2006 £bn £bn £bn Insurance Funds 59.0 58.9 79.2 Institutional Funds 28.1 30.1 34.6 Investment Trusts 6.5 6.3 6.9Open Ended Products - Third Party 3.0 2.9 2.7SICAV's 0.5 0.5 0.5Sub-Advisory 7.0 7.1 7.1 Total Retail 17.0 16.8 17.2 Total 104.1 105.8 131.0 31 December 2006 30 September 31 December 2005 2006 •bn •bn •bn Insurance Funds 87.6 86.8 115.2 Institutional Funds 41.7 44.5 50.4 Investment Trusts 9.8 9.3 10.0Open Ended Products - Third Party 4.5 4.3 3.9SICAV's 0.7 0.7 0.8Sub-Advisory 10.3 10.4 10.4 Total Retail 25.3 24.7 25.1 Total 154.6 156.0 190.7 2. Assets Under Management 31 December 2006 30 September 31 December 2005 by Asset Class 2006 £bn £bn £bn Fixed Interest 54.0 57.7 72.8 Equities 38.2 36.6 45.2 Property 5.2 5.0 6.5 Other Alternative Investments 1.3 1.2 1.2 Liquidity 5.4 5.3 5.3 Total 104.1 105.8 131.0 31 December 2006 30 September 31 December 2005 2006 •bn •bn •bn Fixed Interest 80.3 85.1 106.0 Equities 56.7 53.9 65.8 Property 7.7 7.4 9.4 Other Alternative Investments 1.9 1.7 1.8 Liquidity 8.0 7.9 7.7 Total 154.6 156.0 190.7 3. Fund Flows Fund flows for the quarter to 31 December 2006 Client Category Inflows Outflows Net £m £m £mInsurance Funds - Resolution N/A N/A -Insurance Funds - Other N/A N/A (1,368)Institutional 1,317 (3,239) (1,922)Investment Trusts 1 (66) (65)Open Ended Products - Third Party 132 (49) 83SICAV's 48 (49) (1)Sub Advisory 491 (659) (168)Total Retail 672 (823) (151) N/A N/A (3,441) Fund flows for the full year to 31 December 2006 Client Category Inflows Outflows Net £m £m £mInsurance Funds - Resolution N/A N/A (20,751)Insurance Funds - Other N/A N/A (2,926)Institutional 2,941 (10,944) (8,003)Investment Trusts 105 (799) (694)Open Ended Products - Third Party 512 (203) 309SICAV's 305 (252) 53Sub Advisory 2,633 (2,911) (278)Total Retail 3,555 (4,165) (610) N/A N/A (32,290) Note: In our Q3 2006 Assets Under Management and Funds Flows statement we indicatedthat, at the time of the announcement, we had been informed of furtherinstitutional withdrawals of approximately £3.7 billion, primarily Dutchinstitutional balanced assets, which were not included in the third quarterfigures. At the date of this announcement, approximately £1.9 billion of those assetswere still yet to be withdrawn. These assets, combined with additionalinstitutional withdrawals that we have been notified of at the time of thisannouncement, amount to future withdrawals of £5.16 billion. These assets areincluded in our funds under management at 31 December 2006 and will be disclosedas future outflows in the period when these losses are crystallised. At the date of this announcement and excluding known future withdrawals,balanced mandates managed on behalf of Dutch institutional clients not underlong term contracts total £7.5 billion. Business Outlook During 2006 management identified improved investment performance as the toppriority and implemented a number of measures to achieve this. Initial resultsacross asset classes are encouraging and should, in time, increase the Group'scompetitiveness and enable us to generate substantial net inflows. The asset management industry continues to undergo rapid and in some areasradical change. For example, we anticipate that, irrespective of performance,the shift in the Netherlands from balanced mandates to fiduciary management willbe an ongoing industry-wide trend. Consequently we believe that certain assetsunder management related to Dutch institutional balanced mandates still remainat risk. However, we also believe that this change will provide newopportunities to acquire specialist mandates and we will continue to target newbusiness in higher fee areas as set out in our stated strategy. With the merger integration firmly behind us, the Board reviewed the Group's2006 achievements and management's three-year plans in January and, based onthis review, has endorsed a strategy of accelerated investment in people andinfrastructure to support the delivery of enhanced investment performance andthe establishment of a number of new product initiatives. These excitinginitiatives have the potential to generate significant organic growth and new,diverse revenue streams. This accelerated organic growth strategy will require amaterial increase in investment costs in 2007, which we anticipate may reduceour 2007 operating margin to around 30%. Management and the Board firmly believe that making this investment now willcreate substantial shareholder value in the medium and longer term. In order tosupport this investment, the Board believes that, following the payment of the2006 final dividend, the dividend level will need to be rebased. However, theBoard also believes that the enhanced revenues from new initiatives will supporta progressive growth in future dividends from the rebased level. The company will announce preliminary 2006 results, the 2006 final dividend andfurther details of its strategy and new product initiatives on 15 March. - ENDS - Press contact: Jason Hollands, Head of Communications +44 (0) 20 7011 4168 / +44 (0) 7768 661382 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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